There are companies you’ll always buy from.
And there are some you’ll never buy from again.
You know which ones they are. They’ve earned your business and it would be very hard for them to lose it. They’ve created customer loyalty.
Customer loyalty is worth a fortune. If you can have a customer with 1 product for 5 years or four products for 20 years, the difference in profit could easily be 2000%.
So, how do you generate customer loyalty? Provide great value and a great customer experience.
Value
Value means different things to different people. But often, we confuse great value with a low price. That’s only half of the equation.
The thing that determines the value is what you get for the price.
A new Ferrari for $100K is an incredible value compared to a new Corolla for $50K.
But the audiences are different, and the way they define value is different. Insurance customers are no different. Some just want to save a buck, but many are willing to pay a fair price to get things they value. Things like:
- Low-pain claims.
- Claims that tend to get paid.
- An agent who knows what he or she is talking about.
- An agent who specializes in a certain customer profile.
- An agent who keeps commitments.
- An agent who always does what’s in the customer’s best interest.
- An agent who provides knowledge, insights, and empowerment.
That’s very different from an agent who can sell you a state minimum auto policy at a cheap rate.
Competing on value is way better than competing on price. It means you have something to offer. It means you’re a great agency. The right kind of customer will appreciate it and reward you with loyalty.
Customer Experience
Customer experience is different from customer service.
Customer service is what you provide. Customer experience is what the customer gets.
If you’re “providing great service” to customers who then leave you, maybe what you’re providing is not exactly what your ideal customer wants. Or maybe you (or a team member) are being off-putting somehow. Or something.
Are you focusing on price when the customer wants to value? Or vice versa?
Are you attracting customers that don’t represent your ideal customer persona? Bargain hunters? Perpetual complainers?
Most customers will tell you enough to help you figure out whether they’re really happy or not, so just ask. Then listen while they give you the information you need to:
- Nail down your Ideal Customer Profile.
- Improve your prospecting to attract more of your ICP.
- Provide the value-add that your ICP most appreciates.
- Ensure they have the kind of experience that will make them tell others.
If you’re a great agency, you’re more likely to attract and keep great customers. And once you’ve got a book full of great, loyal customers, you’re in a very good position.