Why New Clients Need More Attention
The headline above may sound like you’re favoring newer clients over your older ones, but I hope that’s not how you take it. What I’m about to discuss is more a lesson in efficiency than it is picking favorites. There is definitely nothing that makes a newer client more worthy of your time than someone, who has been loyal to you for years. However, your loyal clients already know the service you provide and the value that your company brings to the table, or else they wouldn’t have given you their business for so long. While you should never ignore a loyal client’s needs, they can be a bit more auto-pilot than new acquisitions. That’s why you may want to consider pushing more of your time to educating clients on the front end. But if that’s not a good enough explanation, here are some more reasons to consider.
- They will have more questions.
New clients often skew younger, and so they’re probably not in the market for as many products as they should be. For example, most renters know that insurance is a good idea for protecting their things, but a slight majority still haven’t purchased a policy. It’s entirely possible that these same people will jump on the Internet and purchase an auto policy directly from the company with the cheapest price without giving renters insurance a second thought. To cut through this tunnel vision, you may need to discuss more options with these individuals and answer a lot of the questions they have about other coverages that go beyond price. Your more experienced clients, on the other hand, will have a clear picture of what is covered and what isn’t, and where they have gaps in their financial planning.
- Value has yet to be established.
When you have a new client, it’s usually because you’ve won their business based on a single product. That means the full value of what you have to offer is yet to be established. Once you get a new client in the door, you need to spend more time getting to know them. Where are they at financially in the present? What is their marital status? Any children? Do they foresee big changes to their lives in the next year or two? You naturally have a taller hill to climb here than you do with your existing clients, many of whom you may know on a first-name basis along with personal details about their tastes, hobbies, and interests. You may even know many of them socially.
- Flight risk is higher at the beginning.
Study after study shows that you’re more likely to lose a customer in the first two or three years that you have them as a customer. Once a customer is with you around seven years, they’re probably going to be there for life. Since the flight risk is so much higher for new clients, it’s important that you take the time to build as much of a relationship with them as you can. Because in the relationship, you can learn the things about them that allow you to build value.
- They’re more likely to know others in need of your products and service.
Think about the people that you are more likely to hang around. They generally fall in an age range and economic class similar to your own. Well, your new clients are the same way. If they’re having these insurance needs that brought them to your door, then there’s a very good chance that the people they hang out with have the same needs. That means if you take the extra time to establish a good rapport and deliver undeniable value, your new clients can turn in to referral machines. Since your older clients are well-established with you (and likely have equally well-established friends), they may not be as great of a source for new business.
Getting every last ounce of value out of your clients takes time, and much of that time should be spent in the early stages of your relationship. If you’re not focusing enough on your new business, try to shift your efforts the next few weeks and see if it results in an uptick in customer satisfaction and referrals.