If you are a lender, in insurance, offer mortgages or are a bank you are well aware of the competition in the market, what other businesses can offer clients as well as what they cant. But do you know what the market wants right now? Are you aware of consumer trends and how consumers choose financial services? Investing in a little research and development of customer acquisition and retention will put your financial services ahead of everyone else.
Most people will tell you the secret of customer acquisition is relationships.
And those people are right. Think about what makes you come back to a company? Honest, hardworking and helpful people right? Right. Insurance is a hard business to sell, not only because so many people sell insurance, but it’s a gamble for people. When people buy insurance, they are gambling against themselves. Will they get in an accident? Will their house burn down? How can one company, besides those companies that sell mandatory insurance- like car insurance- make other insurance really exciting? But- if your company is one of the thousands selling mandatory auto insurance- how can you be sure to consistently get new customer acquisition and retain those customers over everyone else?
If you live in a small town, it may be easier to spread your company’s word with your good looks and charm at the local grocery store, high school football games and Fourth of July picnics, but in a larger busier city you may need to do some basic R and D otherwise known as research and development. What do consumers want? What are people buying?
- Get some research numbers from a consumer data base surveys that can tell you where people are going to spend their money or who they are talking to as well as trends over several years.
- Think like a consumer and try and understand what is most important to them when they are deciding which provider to use.
- Use your research to plan a distribution strategy for customer acquisition and retention.
- What can your company offer that no other company can offer? How are you “like” them? What similarities in your company, from huge to small town can relate to new customers and what are the perks that you can offer to retain them?
Maybe it’s coffee shop cards you can persuade them with if you cannot offer rock bottom rates. Maybe it’s building a deeper relationship- like potlucks or going golfing that can retain their customer relationship. Remember that junk mail is a waste of your company’s money- junk mail advertising is being recycled before potential customers are opening the envelopes. As well as internet ads are considered SPAM. Getting up close and personal with new customer relationships will keep your customers around longer and they will spread the word for you- saving your company money as well as making it.
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