Chapter 7 - Building Long Term Relationships Flashcards
1
Q
4 types of relationships
A
- Hands-on/High involvement.
- doctor, hair dresser. - Face-to-face.
- insurance broker. - Distant.
- ATM’s, email. - Brand.
- brand loyalty.
2
Q
3 factors that make a client profitable over time
A
- Clients spend more money the longer they deal with a business.
- Less price sensitive
- Referrals to friends and family.
3
Q
3 R’s for building solid client relationships.
A
- Retention
- Referrals
- Recovery
- use mistakes to impress client.
4
Q
Client Relationship Management - 4 ways to measure employee activity
A
- By Client
- who bought what, when, why. - By Product
- tracking product sales. - By Employee
- which employees are best at building relationships. - By Branch
- track profitability for each branch.
5
Q
Process Effectiveness: Brokerages should review the following areas:
A
- Employee mix
- the right people in the right place. - Tasks and division of duties
- clear roles and efficient distribution of tasks. - Client needs and perception
- what do your clients need? - Office design
- layout of brokerage must be convenient. - Phone system protocol
- are clients being transferred a lot?
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.
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.
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.
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.
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.
11
Q
Client Relationship Management - Success factors
A
- Client Activity.
- what products/services do clients currently use. - Employee activity.
can be measured: -by client -by product -by branch -by employee - Process Effectiveness.
- how effective is your office? - Loyalty Recognition.
- bottle of scotch at christmas. - Consultative selling.
- not a “hard sell” - Financial Management.
- Commitment.