Retaining and Attracting Clients

A proactive approach is the best way to build and grow your practice.

By Troy Korsgaden

In this age of do-not-call and “no solicitors,” we must take a proactive stand in retaining and attracting clients for our multiline agencies. Our agency is constantly retooling to maximize profits. To gain market share and deepen relationships with current customers, there must be a clear, concise contact-management program, which must fit within the guidelines of the do-not-call laws and incorporate common-sense practices when dealing with clients.

Existing clients
Your current customer base holds the biggest opportunity for selling. We focus on the following strategies:

1. Emergency contact: Referrals are easily obtained by asking clients for emergency contact information. We ask the following question at the end of a review or new business transaction: “Who do you trust the most outside your household to handle your financial affairs if we cannot contact you at the time of a loss or tragedy?” You can use this information to help your client when he needs you the most, and it is an opportunity to introduce yourself to a new family and form a long-term relationship. Never sell or x-date when contacting this customer initially—simply explain the services you are providing. Many of these folks will talk to you without prompting, creating an opportunity to put them on your newsletter list and add to your regular follow-up system. Position yourself as a trusted advisor, not a product peddler, and you will reap huge rewards.

2. Rhythms: Look for rhythms when contacting current customers. An example would be calling a doctor before 8 a.m., when there are usually no other employees to block the call. After 8 a.m., you can’t get through to him. Once you know the rhythm of your client and when he picks up the phone, you will want to note this valuable information in your database.

Potential clients
Create and scrub your own potential client lists. It is easy to find lists of folks in associations, clubs, church directories, etc. Again, position yourself as a trusted advisor. Ask potential clients for an opportunity to meet them and hand them your card. Tell them you will not try to sell them anything. You are only interested in shaking their hand, exchanging business cards, and meeting them face to face. You advise them that people buy from people they know and trust and you want to meet them so if they ever think of changing agencies or companies, they will think of you first. Many people are happy to meet you if they know you are not going to try to sell them something.

Do the math. Four new introductions per day, five days a week equals 20 new introductions. That’s 20 new prospects in just one week. Work on this program for just one month and you’ve met 80 new prospective customers.

Referrals
Referrals are a must when growing your agency. I was trained by one of the industry greats, who told me that people do not refer up; they refer down. So you must be proactive in obtaining referrals, including referrals from customers, prospects, centers of influence, etc. When getting referrals, ask for introductions and make it clear you will not try to sell anything. If people like you and know you will not embarrass them, they will introduce you to coworkers and associates.

Retooling your practice
One of the top retooling issues for your agency is how you contact customers and develop new accounts. Mark a date on your calendar to think this through and put a plan into action. This move will have a long-term impact on the growth and sustainability of your agency.

Troy Korsgaden, a member of NAIFA-Sequoia (Calif.), has twice been named “Agent of the Year” from among 14,000 Farmers Insurance agents. He has trained nearly 40,000 insurance agents and staff. For more information, call 800-524-6390 or go to www.tksystems.org.