CLIENT NURTURING
Customers' "satisfied" rating doesn't necessarily
indicate a passing grade
By Jim Cecil
"Just because the competition is tough, that's no reason to be tough on customers," says Sir Colin Marshall, chairman of British Airways. Most agencies are delighted when the preponderance of respondents to satisfaction studies mark "satisfied." These agencies are making a potentially deadly assumption.
What are most customers saying when they check "satisfied" but not "completely satisfied"? They are saying that they are actually unhappy with certain aspects of your package. Given the present stimulus of fear about spiraling premium predictions, those "satisfied" customers are the most likely to defect.
Agents often associate satisfaction with loyalty. That's "dangerous assumption number two." In fields where customers have multiple choices of sources, the difference in retention between completely satisfied and merely satisfied are enormous.
Fear can prompt otherwise satisfied customers to accept overtures from a variety of competitive channels. They can become the formerly satisfied very quickly. The rules of the game can change so quickly that agencies ignoring the importance of the WOW factor risk rapid market share erosion.
"Loyalty is often the mere absence of a
superior offer."
Competitive sales presentations expose clients' hidden pains, thus unveiling opportunities and accentuating deficiencies in your package of benefits that bring about "satisfieds." Great agencies that excel in totally satisfying their customers tend to be voracious listeners. The best are able to interpret those insights into unique and customer-wowing contacts and services.
"Just the facts, Ma'am"
Satisfaction studies needn't be expansive or expensive to meet their goals. Select your 20 most important customers. Write a personal letter seeking their help and feedback. Make your survey brief and to the point. This is not the time to ask 50 questions. Ask five. Determine what you really want to know and ask them to tell you. Using questions that gently probe can result in revealing answers. A few examples provide real information.
In your cover letter, thank them for being your customer. Thank them in advance for helping you improve. Stress that while you appreciate compliments, you want their unvarnished opinions and ideas.
Even if it makes for a long letter, let your questions naturally follow your opening remarks and request. Make it easy to respond via fax or e-mail.
Following is a sample letter/survey:
Dear _______,
I believe the first time I got a D grade was in kindergarten. It taught me that people have high expectations and that often they keep score. Knowing how we are doing with you is a key component of our program to continually earn your loyalty and referrals. That's why I'd like to ask you a few basic questions about the real value of our services to you.
A. How satisfied are you with the level of service you receive from us overall?
B. If we could add one service that would be very beneficial, what would you suggest?
C. Do you have sufficient interactions with agency principals?
* Plenty
* Sufficient
* Could improve
* Not often enough
D. How would you rank our overall:
| Customer Service |
| * WOW |
| * Great |
| * Fine |
| * OK |
| * Help |
| Responsiveness |
| * WOW |
| * Great |
| * Fine |
| * OK |
| * Help |
| Attitude of helpfulness |
| * WOW |
| * Great |
| * Fine |
| * OK |
| * Help |
I will personally review your responses, and I promise to keep
your individual comments confidential.
We enjoy our relationship with you and will always work to make it
even better.
Please know you can always reach me at [phone number] ___________.
I welcome hearing from you in person.
Sincerely,
Principal
Consistently profitable agencies strive to go beyond the basics (services, risk coverages), and smart agents have always worked to provide quality, highly personalized experiences.
"Affection is the antidote to defection."
Creating a relationship that consistently provides services with a global scope while retaining a homey feel is no easy matter in a business where dozens of human interactions shape each customer's experience. It is difficult for competitors to duplicate this level of relationship contact. This helps to minimize "customer churn" and maximize your share of your customer's overall risk portfolio.
Encourage customers to air their complaints and problems. Make quick and generous amends when service fails. Carefully crafted surveys can help isolate and eliminate operational weaknesses that can lead to a prematurely failed relationship. Such a personal approach has consistently attracted referrals, has controlled the cost of keeping the ones you want, and has helped increase your overall share from each customer. When the dust settles, send a small, solid gift to everyone who responds, along with a personally signed thank-you letter for their input. Schedule a personal phone call or visit where appropriate.
Certainly occasional C or D scores make you feel rotten, but they also serve as a great wakeup call and an early warning about a need for immediate improvements. Such scores often are direct appeals for your personal attention to a real problem. Finally such action often remedies hidden defection problems in an affordable, respectful and proactive manner.
You work hard to serve and it's time to measure the actual results you are producing with these most precious assets. You may even be getting all As and not know it.
The author
Jim Cecil provides custom nurturing solutions for agencies. For a turnkey strategy to making customer contacts that count, review the Nurture Solution for Insurance Professionals at: http://www.nurturemarketing.com/
industry_specific/insurance.html. A free copy of his "A Cure For The Common Cold Call" is available at www.nurturemarketing.com/FreeStuff.