In this business, people come first. Everyone needs to be protected from risks and accidents. And you love giving them value.

But they don’t all respond the same way, do they?

Here are 10 truths about customers that you probably already realized but haven’t necessarily resolved.

 

1. Not all customers are interested in value.

Many of them only care about price. They left someone to come to you. They’ll leave you when someone else has a better price. Your job is to transform their intent before it’s too late. Help them appreciate the value you offer.

 

2. Not all customers are profitable.

Acquiring customers costs money. That’s called Customer Acquisition Cost (CAC). It’s probably at least $250-$300 per customer.

If your commission is $150 per year, it’s easily a 2-year payback period, and that’s just to cover up-front costs. If they leave within 2 years, you might have negative profit. How can you show them why it’s worth staying with you?

 

3. You have an Ideal Customer Profile (ICP).

Maybe you don’t know what it is yet, but your ICP represents the customers who value your care and commitment to them. They’ll give you all of their business, stay with you for many years, and introduce you to friends and family.

If you figure out your ICP and optimize your prospecting for them, what will happen?

 

4. Some customers produce 20x more Customer Lifetime Value (CLV).

A customer with one policy who earns you a $100 annual commission for 5 years (after a $300 CAC) will provide $200 of CLV.

A customer with 3 policies for $300 in annual commissions for 20 years (also less $300 CAC) will provide $5700 in CLV.

That’s 28.5 times as much profit.

 

5. You spend more time on low-value customers.

You know who they are. And they’ll leave you to save a few dollars.

But your VIPs don’t have late payment problems and don’t need lots of hand-holding. Often, if they’re talking to you, it’s because they’re buying something. At minimum, it means they’re not talking to someone else.

Again, what if you focus more time on rubbing shoulders with these folks and getting to know their people??

 

6. Ideal customers will bond with your team.

This is the best reason to have a team that’s inspired to be great, not coerced into looking busy. A great team will make great customers stay around, whereas a micromanaged, unhappy team will chase them off.

 

7. Great customers love to be educated.

These folks are more serious about their future, and when you educate and empower them, they naturally assume you’re the one who can help them solve their problems.

 

8. High-value customers need solutions, not products.

If you’re consultative and engage with customers, you’ll learn about the challenges they need to address, and you’ll be able to help them solve important problems. That’s night-and-day different from selling them a policy.

 

9. What Bob Burg said:

“All things being equal, people will do business with and refer business to, those people they know, like and trust.”

 

10. Great customers will motivate your employees.

A terrible customer can call your office at 9:30 AM and completely burn your employee’s emotional budget for the day. And in that depleted state, they will have to spend the rest of the day talking to other customers. It’s NEVER worth it.