Chapter 7 Flashcards
Briefly identify the four levels of client relationships and briefly describe each.
i) Hands-on
These relationships involve very close and personal interactions that may involve physical touching
ii) Face to Face
Client interacts with company personnel on a regular basis where they actually meet with employees, they see and talk with company personnel
iii) Distant
Technology is used to provide interaction between customers and company staff. Telephone, fax and email are common methods
iv) Brand
This represents relationships clients have with particular brands
Over time, customers become more profitable. Explain.
Long term clients tend to spend more and more with brokerages. Long term clients are less price sensitive. Long term clients make referrals to brokerage. Long term clients are less costly to serve because brokerage knows clients needs and wants better.
What clients are most important to brokerages?
Most important clients are those that will represent a life time of earnings for the company and those clients who are influential in the community who will provide positive word of mouth promotion of brokerage.
Identify some signs that indicate a “relationship is at risk.”
Brokerages should recognize when clients begin to purchase some insurance products from competitors or when policies lapse or when family members begin to buy from competitors.
What steps can brokerages take to retain clients once they become aware there are problems?
Brokerages should determine reason for dissatisfaction and make a counter offer that client may find attractive.
Client satisfaction is the result of quality internal service and employee satisfaction. Explain why this is true.
When employees provide good internal service to each other, they become satisfied with job. This leads to long-term employees resulting in increased productivity. This provides better external service quality leading to client satisfaction. This results in loyal clients which will increase revenues of brokerage and enhance brokerage profitability.
Brokerages receive three benefits by building client relationships. Explain these three benefits.
Retention is a benefit of client relationships. Retention directly impacts profitability of a brokerage Referrals are a benefit of client relationships. Referrals increase sales and enhance the profitability of a brokerage. Recovery strategies are a benefit of client relationships. Developing strong recovery strategies actually improves customer loyalty.
There are seven key elements (Success Factors) that brokerages need to excel at to ensure successful development and implementation of client relationship management strategy. Identify them.
i) Client activity
ii) Employee activity
iii) Process efectiveness
iv) Loyalty recognition
v) Consultative selling
vi) Financial management
vii) Commitment
Identify the four ways employee activities should be measured.
i) By client
ii) By product
iii) By employee
iv) By branch
To successfully deliver relationship management, efficient processes are essential. Identify five areas brokerages should review to ensure process effectiveness.
i) Employee mix
ii) Tasks and divisions of duties
iii) Clients needs and perception
iv) Office design
v) Telephone system and protocol
Brokerages must be aware of the costs of maintaining a client relationship management strategy. Why?
Client relationship management strategies will cost a brokerage both financially and in terms of its human resources. As a result of this investment, brokerage management must be able to track expenses and benefits of these strategies.
