Archive for the ‘Retention & CRM’ Category

Retention….. the hidden key to broker growth?

Insurance brokers are indeed fortunate.  Why?  Well there aren’t many sectors where a company sells something  to a customer, only for that same customer to return time and time again, around  80% of the time. Not in consumer goods,  retail, telecoms, automotive, or a whole host of other sectors does this happen.  So do brokers really appreciate the opportunity that renewal dates present to other brokers?

The reality is that competitive intensity within the commercial insurance sector is increasing  within an uncertain economic landscape. Many brokers are considering some sort of lead generation activity as a solution to the problem of customer churn, often as a result of a price sensitive market. So how do you fend off the dogs and look after your own?

Brokers do  have options. You could accept that you will lose some customers to rival broker lead generation whilst employing the same tactic to do the same to others… growing  to stand still. You could rely on traditional methods of business development and wait for the ‘referral’ phone to ring.  Welcome but unpredictable. Or you could hone and develop the customers you already have, by locking them in and giving them no reason to look elsewhere.  It’s your choice but  its vital to get it right.

Proper, planned, targeted and relevant Customer Relationship Management is one way to protect your customers from walking away to the next  price driven offer.  There  is more to it though than simply relying on good customer service, it’s about  working closer, becoming tighter and adding more value to their businesses through your expertise, to ultimately become their broker, rather than just a broker. Would you move your business to another supplier if they demonstrated value to your business?

True CRM is  about effective communication with customers,  learning along the way and building loyalty over a period of time. Knowing what they like, don’t like, need and want, all at the right time. It’s no more complicated than that.  To facilitate true CRM, a broker needs to be able to interpret data intelligently and communicate with customers in a regular and relevant way, demonstrating usefulness and value to a customer (it’s not just about a newsletter!). Advice is available on how to create a simple plan and putting it into action, utilising the right tools. Get it right and you can not only protect your hard earned, happy and loyal customers from attack, but also enhance your profit and reap organic growth at very low cost.

If you do want to operate growth on all fronts by adding to the external pipeline, I know a few chaps who do a mean line in lead generation too…

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