Chapter 7 - Building Long Term Relationships Flashcards

1
Q

4 types of relationships

A
  1. Hands-on/High involvement.
    - doctor, hair dresser.
  2. Face-to-face.
    - insurance broker.
  3. Distant.
    - ATM’s, email.
  4. Brand.
    - brand loyalty.
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2
Q

3 factors that make a client profitable over time

A
  1. Clients spend more money the longer they deal with a business.
  2. Less price sensitive
  3. Referrals to friends and family.
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3
Q

3 R’s for building solid client relationships.

A
  1. Retention
  2. Referrals
  3. Recovery
    - use mistakes to impress client.
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4
Q

Client Relationship Management - 4 ways to measure employee activity

A
  1. By Client
    - who bought what, when, why.
  2. By Product
    - tracking product sales.
  3. By Employee
    - which employees are best at building relationships.
  4. By Branch
    - track profitability for each branch.
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5
Q

Process Effectiveness: Brokerages should review the following areas:

A
  1. Employee mix
    - the right people in the right place.
  2. Tasks and division of duties
    - clear roles and efficient distribution of tasks.
  3. Client needs and perception
    - what do your clients need?
  4. Office design
    - layout of brokerage must be convenient.
  5. Phone system protocol
    - are clients being transferred a lot?
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6
Q

What is the “Stream of earnings”

A
  • client’s profit making potential.
  • referrals.
  • cheaper to renew an existing client than a new one.
  • even a small increase in client loyalty can double profitability.
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7
Q

Why are loyal clients less price sensitive?

A
  • more importance on how knowledgeable broker is, how well they are treated, and efficiency of service.
  • they trust their broker to provide the right coverage at the right price.
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8
Q

The most important clients.

A
  • not always the ones who spend the most money.

- clients who speak well of the brokerage and can influence people are very valuable.

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9
Q

When clients spread their business around, this indicates a relationship at risk. How do you recover?

A
  • find out the source of dissatisfaction.

- if possible, make an attractive counter offer.

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10
Q

What is internal quality service?

A

includes:

  • employee selection and development
  • workplace design
  • job design
  • rewards and recognition for employees
  • employee satisfaction = client satisfaction
  • tools and freedom given to employees will improve client satisfaction
  • clients perceive value when they feel the broker does more than expected.
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11
Q

Client Relationship Management - Success factors

A
  1. Client Activity.
    - what products/services do clients currently use.
  2. Employee activity.
    can be measured: -by client -by product -by branch -by employee
  3. Process Effectiveness.
    - how effective is your office?
  4. Loyalty Recognition.
    - bottle of scotch at christmas.
  5. Consultative selling.
    - not a “hard sell”
  6. Financial Management.
  7. Commitment.
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