CH 7 Flashcards
Client Relationship Value
Long-term client relationships are crucial for insurance brokerage success, differentiating brokers from competitors and fostering loyalty.
High-Involvement Client
Close, personal relationship with strong emotional connection, common in specialized services.
Face-to-Face Client
Regular in-person interaction, not always highly personal. Common in independent insurance brokerages.
Distant Client
Less frequent contact, primarily through technology. Often little direct interaction.
Brand Loyalty Client
Clients connect emotionally with established brands leading to repeat business and long-term retention, built through exceptional service.
Client Attraction Cost
Attracting new clients is expensive compared to retaining existing ones.
Client Profitability
Clients tend to spend more with a brokerage over time as needs evolve.
Loyal Client Characteristics
Less price-sensitive, valuing knowledge and responsiveness, rather than price alone.
Referral Value
Loyal clients generate referrals, leading to new business and client relationships, often more valuable than ads.
Client Churn Cost
Lost clients represent lost future profit potential.
Valuable Client
Clients with influence and positive referrals are key assets, not necessarily just high-spending ones.
Client Risk Assessment
Recognizing warning signs of clients at risk (e.g., reduced coverage) for early intervention.
CRM Strategy
A comprehensive approach to ensure clients become long-term users of multiple products/services.
Client Activity Tracking
Tracking client product usage to proactively address needs and offer appropriate products.
Employee Activity Measurement
Measuring client relationship management progress by client, employee, & branch.
