How to stop your clients from leaving for another broker
Here are some steps insurance agents and brokers can take to minimize the likelihood of a client walking away.
Everyone loses clients. We rationalize a certain amount of attrition is expected. It might be a corporate account or an individual’s retirement plan. Once you understand the reasons, there are steps you can take to minimize the likelihood of loss.
1. Lack of communication. It’s been called the #1 reason clients leave advisors. They only get attention when they ask for it.
Instead: CRM systems make periodic contact easier. When you get in touch, remind them of the last time you spoke or the number of times you reach out during the year.
2. Don’t feel like an important client. No one wants to feel they are a number, not a name. They feel the broker has hundreds or thousands of accounts. They are a small account, which is why they don’t get much attention.
Instead: Tell them it’s an important relationship. Let them know you work with a small number of clients. This is because you want to provide the best service you possibly can.
3. Sense they are overpaying. They hear friends are paying less. If it’s a business, they put out an RFP to see if they can get better pricing.
Instead: Years ago, I heard about an advisor suggesting to a client every couple of years they shop around and look at alternatives. It would be a lot of effort, but the client likely concludes the advisor suggests it because they know their pricing is fair. You need to have a discussion about the value you bring. Clients need to know what they are getting in tangibles and intangibles.
4. Someone cheaper comes along. One of the easiest ways to win business is to offer low introductory pricing. You see it with wireless services and credit card companies. Try pricing cruises sometimes. Although some companies claim 25% or 50% discounts, side-by-side comparisons often show everyone is charging about the same.
Instead: If it’s an introductory rate, how long does it last? What happens next? Most importantly, what does it include? You are likely doing more. Advice has value. It’s not just transaction costs.
5. Follow the leader. Their advisor or relationship manager leaves to join a competitor. Their loyalty has them following the person to their next firm.
Instead: Emphasize the team structure. More than one person is responsible for the relationship. Senior management routinely thanks the client for their business directly. When the point of contact moves, the remaining team members explain that “your team is still here. We will continue taking care of you.”
6. The competitor is a step up. Another firm is perceived as more prestigious. They are told, “You are moving into the big leagues now.”
Instead: Your firm wins awards too. Sell your firm like a product. Share recent accolades from time to time.
7. Better technology. A competitor leads with tech. The client thinks it’s superior to yours.
Instead: Here’s the problem: Yours might be as good or better. You’ve never told them because they never asked, or you assumed they weren’t interested. Periodically show them what they can do. Afterward, ask if they’ve tried it.
8. More choices available. The competitor appears to offer more options than the program your client is using with you. The cost is the same.
Instead: There may be more options at your firm, but you assumed your client was fine. At least once a year, take time to review “What we can do for you.” Put another way, “How can we help you?”
9. Bad news about your firm. There’s been a big lawsuit or other negative publicity. Competitors are pointing this out.
Instead: Compartmentalize the damage. It happened in another division. Review steps taken to see it doesn’t happen again. Stress their personal relationship with you.
10. Poor survey results. A competitor thoughtfully suggests surveying company employees to gauge satisfaction with their insurance plan. You don’t come out looking good.
Instead: Either the company does it internally and independently, or you control the process. Don’t let a third party measure someone’s satisfaction with you if it can be avoided. How you word the question often determines the answer.
11. Poor service or unresolved problems. This is big. They had a problem. You referred them someplace else. It’s not in your area of responsibility. They have a bad experience.
Instead: All client problems are your problems. You act as the intermediary until it’s resolved.
Clients will leave. By being attentive to the relationship, you can try getting the odds in your favor.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” can be found on Amazon. The opinions expressed here are the author’s own.
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