Why does it take my leaving to get the best rates? I’ve been a loyal client at an insurance broker for 14 years. Although they wouldn’t have been my first choice, they did manage the program for a very large association to which I’m a member. Although I’ve enjoyed significant savings for a number of years, service levels on the other hand have gone from great to sub-par.
Like many of us, I stayed with this organization as I believed I was receiving the best rates if not necessarily the best service. After a recent minor service irritant, I decided to investigate the offerings from another association/group and was pleasantly surprised at the savings I would realize along and the enhanced coverage. Additionally, I would be dealing locally instead of a centralized national office.
Ok, so what’s my point? As part of the transfer, a cancellation letter was sent on my behalf by the new agency. Out of the blue, I receive a phone call from my soon to be former agency asking why I was leaving. After explaining my history and new found savings, they then asked if they could requote or using their terms “remarket me” (who uses those terms), in order to find better rates and coverage so as to retain me as a client!
Of course my reaction was, “Why do I have to leave before you decide to offer me a better overall solution?” I expect any company I deal with to offer me their best pricing all the time. I’m not asking that they cut their margins or for a special one time deal, although I’m open to it. I just expect them to do their job and provide me with the best product at the best price ……before I leave!
Yes, it is true, that many customers have been saved by this tactic, but wouldn’t it be far more efficient and productive if they just provided a better service from the get go? Scrambling to save clients in this manner is a stressful low percentage activity.
We all need to remember that the most profitable customer we’ll ever get, is the one we already have! It cost between 5- 10 times more to get a new client than it does to keep an existing client! You’ve done all the heavy lifting in getting them as a client, now you just need to provide the best possible service. Whatever you do, don’t take them for granted, because most are like me and once I decide to leave, I’m gone!
Copyright © Greg Weatherdon 2011
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