MI_27-28_protection.qxd 27/2/09 11:16 Page 4
28 | Protection
Another method is to present the good old
goose and its golden egg! People say they would
protect the goose, which is laying the golden
eggs, but in reality people only protect the
golden eggs, e.g. the car, the mobile phone, the
roof over their head, but not the person who
pays for all of these things!
Sowing the seeds of success
By honing your selling techniques it can not
only help you to generate more income, but
create loyal customers. Remember the initial
sale is only one part of developing a successful
business.
Raising your retention rates by only 5 per
cent will increase your sales by 25-85 per cent
1
,
with over 70 per cent
2
of advisers receiving
over half of their business through existing cus-
tomers.
Realise the potential lifetime
value of a customer
The recent downturn in the market has seen a
decline in first-time buyers and new entrants
into the market so seeking out new leads is
becoming increasingly more difficult. The
importance of retaining your existing cus-
tomers has never been more important. You
need to realise the lifetime value of a customer.
But how do you create a loyal customer?
W
circle6
ell there are some key steps you can follow:
From the initial prospect call to the comple-
tion of the mortgage, customers must feel
that they have received exceptional personal
service that was professional, efficient and
circle6
met their needs.
© Keeweeboy
A quality service could include offering
advice on General Insurance, Life and rate mortgages. You could use this as an oppor- Identifying these customers will help you to
Income Protection – in other words, a tunity to promote what this extra cash could focus on the most profitable parts of your busi-
circle6
holistic approach to financial planning. buy them, important financial protection. ness. You need to make it easy for these cus-
Happy customers refer their friends and Setting up simple alerts on your customer tomers to do business with you e.g. give them
family, and will come back to you next time database, such as when a mortgage is set to your mobile number, make sure they get details
they need advice. change, could help you send out a tailored and of the best deals as they are launched and
timely promotional remortgage letter to these always communicate to them that they are
Keep in touch customers, advising them of the need to review important to your company.
Customers' needs will change over time and it their financial situation.
is important that your service is modified to With the recession taking hold many are A flourishing future
best meet these needs – divorce, marriage, looking to the future, remind your customers I hope the points I have raised will help you
change of employment, or the birth of a child about the importance of financial protection - make a sale and turn new customers into long
will always prompt a customer to review their It could be key for their future financial pros- term customers. Remember, help your cus-
financial situation. At that time you should be perity. tomer to understand what protection means to
top of their list and this can be achieved them, and help them paint their own protec-
through regular timely communications. Plan your Easter egg hunt! tion picture.
For example did you take advantage of the Targeting the right message to the right person If you do make a sale, then with regular con-
major changes to the Welfare Reform system? at the right time is the secret to building rela- tact and a highly personalised service, these
Are your customers aware of the changes and tionships. Bombarding people with weekly mail customers could then form the cornerstone to
the importance of Income Protection? If not, shots and calls is not the answer. Planning your long-term survival.
they might be very interested in taking out a communications in a timely manner – for
new Income Protection policy. example, a yearly newsletter sent to inform and
There are also changes you can be proactive reassure, or a phone call made when a particu-
about – with the further reduction of interest lar rate is launched. It is all about giving a call
1. Source: Harvard Business Review
rates to their lowest in the Bank of England's to action at the right time. 2. Source: AMI
history 4, many of your customers may have It is well known that 20 per cent of cus-
3. Source: Attitudes to Selling – Alan J Zell - 'The
spare cash, especially those on Tracker and SVR tomers deliver 80 per cent
3
of the profit.
80/20 rule and how its fits into every business.'
March 2009 Mortgage Introducer www.mortgageintroducer.com
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