Customer Retention Strategies

Customer Retention Strategies
by Tony Cole, Co-Founder of Anthony Cole Training Group

If your goal is to retain and expand relationships, it is important to create a consistent and remarkable experience for your customers, clients, and potential clients. If you are not providing a superior experience, your clients might start asking “Then, who will?” Here are several questions to consider as you reflect on your customer retention strategies:

• What are you doing to keep your clients happy and satisfied?
• Are they telling others about your business?
• Is your firm providing an excellent consumer experience for your clients?
• Are you getting to know the wants, needs, and pain points of your customers each and every single day?
• Are you under-promising and over-delivering results?

Now, can you think of a place where you go and wait in a long line, spend a lot of money, and yet, can’t wait to tell others how great your experience was?  That could describe a number of places, but one example that has lasted for decades is the Disney experience.  Disney has been successful for many years by building advocates for their brand.

In recent years, Disney has consistently ranked in the top 10 brands overall. No one would argue with the success that they have in exceeding expectations and creating loyal advocates. In his book, Inside the Magic Kingdom, author Tom Connellan explains the seven keys to Disney’s success and how they work to create a dazzling experience for all of their guests.  If you read the book, you will learn what has gone into building and sustaining that kind of relationship with their customers. These are principles that you can apply to your business.

In order to achieve “dazzling”, you must have a process that is consistent and predictable.  People need to know what they can depend on when they trust you with their personal or business insurance.  In other words, it’s not a once-in-a-while thing; it is just the way you do things, every day.

Keep in mind that it does not have to be the same thing for all of your clients.  The way you support your top 20% should be different than how you support your bottom 20%.

But, at the heart of it all, everyone gets the basics.  However, if you want to retain and increase relationships and stand out from the competition, you and your insurance firm must be willing to impress, dazzle, and treat your advocates like members of your family.  It may sound drastic to some, but there is a reason that some companies truly stand out in a crowded market.

It’s the little things that matter in business.

Here are 4 strategies for retaining and creating loyal advocates for your agency:

1. You have to find out what they want. How do you do this?  Ask! Give them a list of things to choose from with the option to add things that might not be on the list.
2. Next, prioritize critical areas. The key here is to find out what they won’t tell you. How many times have you left a restaurant after you told your server everything was fine when they asked?  Some of your clients may do the same thing.
3. Identify performance levels and find out where they are setting the bar; don’t assume you know.
4. Negotiate expectations. Now is the time to deal with anything they cannot agree to. Sometimes we say “yes” because we think it’s a deal-breaker; just ask and then decide. If it is outside your ability to deliver, then you are better served to move on because, unfortunately, it will always be a struggle and they will never become an advocate anyway.

These 4 steps will work assuming that you already have a strong knowledge base and industry acumen of the goals and challenges of the businesses and clients you are working with. The only way to exceed your client’s expectations is to know what they actually are, not what you think they are.  Start by having that conversation first and soon you will have them coming back for more and telling their friends. This understanding of client expectations is The most powerful customer retention strategy but it takes some focus and effort.

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