Historically, it's been fairly easy to write and renew coverage on an account for one to three years, after which the account cancels for a number of reasons. To break this mold, consider the 'lifestyle marketing' concept.
Lifestyle marketing, simply put, is the process of conducting business with clients as if you intend to do business with them for life. Rather than viewing clients as short-term additions to the agency, think in terms of protecting them for years to come.
To put this in practical (and monetary) terms: Estimate the annual value of the account, then multiply that amount by the number of estimated years of potential service for that client.
For example, Client Z's estimated annual value is $5,000 (a nice round number). Client Z is expected to stay with the agency for about 15 years. Fifteen multiplied by $5,000 equals $75,000. This means that you are really working on a $75,000 account, not a $5,000 one.
Lifestyle marketing illuminates the bigger picture, the greater value of a given client. This alters agency employees' perception of a client and encourages a more serious commitment. But lifestyle marketing addresses more than the dollar value of customers; it should also become an intrinsic part of the agency's service and sales expectations.
When subscribing to the lifestyle marketing concept, building confidence, trust, loyalty, and allegiance is fundamental. Merely calculating the long-term value of an account or saying you want customers' trust isn't enough. It's crucial to demonstrate that commitment to lifetime service. Some actions to take are:
- Deliver service above and beyond client expectations.
- Adjust the tone and quality of your voice to that of the client's.
- Actively listen to clients' statements, problems, and questions.
- Ask appropriate questions that clarify the client's position.
- Speak positively about your agency and the insurance business in general. Be careful not to place blame on others in the business.
- Use positive reinforcement-that is, discuss things the agency and client have done right and the things you've done well.
- Follow up on information given, even when it's not requested.
- Establish a quasi 'partnership' with clients. Act as a resource; when you can't fulfill client needs, act as a referral source.
- Keep clients informed and educated (even when unasked).
- Use good judgment when making exceptions to the rules and regulations established by the agency and company.
- Treat existing customers with as much attention and TLC as you treat prospects.
If the insurance industry is to move from the public perception of commodity provider to providers of truly valued services, then the way business has traditionally been conducted must change. The idea is to outperform the competition by offering benefits unheard of through typical agencies. The secret to success is to structure these special services and features so that they are earned and compound over time.
Lifecycle marketing is aimed at large population segments that are homogeneous. Factors such as age, geography, or other similarities determine the market, rather than occupation or lifestyle. The key is in how you look at it. For example, the question, 'What would we have to do to write and retain all the quality baby-boomer business in Ohio?' causes the marketing focus to change from individual products to the needs of the total baby-boomer market.
This changes the relationship from a situation in which customer satisfaction is determined by an agency's response to requests and concerns to one in which the agency has the opportunity to render unique services or benefits at preselected intervals. The lifecycle marketing focus provides a dramatic shift in how the insurer is perceived and valued. Customers are encouraged to continue their relationship because of the perceived value of the special services they are getting.