A customer at a luxury car dealership complained to the salesperson, 'These additional features are unnecessary and certainly not worth a dime extra!' These 'worthless' features, however, were important to the dealership's target market. Therefore, does this one prospect's opinion count? No!
A small restaurant built a strong reputation and a solid local clientele in its 20 years of operation. After a new chain restaurant opened nearby, the small restaurant's owners noticed their limited menu and homey atmosphere seemed to dissatisfy a few customers. Most of the customers were still happy with the great food and service, but the owners worried that they'd lose too much business to the new, larger restaurant. They expanded their menu and upgraded their facilities, and they cut prices (and quality) to compete with the chain restaurant.
In no time, their service, food quality, and portions declined - and so did their devoted following. The restaurant lost everything that had made it a success and soon went out of business. Did these owners pay attention to their most important customers? No!
An agency, as part of its excellent service, began to call clients to review their coverages four months before their renewals. A few clients didn't appreciate the calls - they thought the agency was just trying to make more sales. The agency began to doubt the value of its service.
Even though these disapproving customers spoke more loudly, they were the minority. They usually had small accounts, they didn't do what was in their own best interest (such as buy adequate insurance), and they'd probably switch agencies for a dime. Should their opinion count more than a customer who has all their insurance with you and appreciates your suggestions? No!
Not all customers are created equal. Sometimes the squeaky wheel gets too much of our attention when its our best customers we should heed. Knowing which customers' opinions to value is important to an insurance agency's bottom line. It helps us decide how to use our limited resources, especially our time, more wisely.
To determine who merits most of your attention, identify who pays your bills and who you want as customers. Learn what services these clients want by surveying them - then emphasize those services. Concentrate on strengthening relationships with your most important customers and building that customer base. Don't worry about losing your worst clients - let them pay another agency late and consume your competition's time with complaints!