Caib 4 Chapter 7

Front 1

4 characteristics of levels of relationships:

Back 1

1) Hands on/ High involvement: among the closest of relationships. Characterized by relaxed, casual conversation and high levels of emotions. First name basis. (Doctor, hair dresser)

2) Face to face: the client actually meets face to face with employees of the company; they see and talk with each other. May develop close relationship based on type of transaction. (Insurance broker)

3) Distant: less frequent contact, less likely to meet face to face. Contact made through technology, over the phone, atms, voicemail, email, or internet. (more and more relationships operate this way)

4) Brand: principal contact is through agents and retailers. consumers develop loyalties to some brands and go back to buy them over and over again. (Nike, Apple, Tim’s)

Front 2

The factors that make a customer profitable over time:

Back 2

1) clients tend to spend more money with a business the longer they deal with it. Needs change through life cycle. Additional coverages with new acquisitions.

2) clients price focus shifts as there is an increased comfort level with insurance provider

3) referrals to friends and family.

4) long term clients are less costly to serve

Front 3

The most important or valuable customers to a brokerage:

Back 3

It is a mistake to think that a brokerage is most valuable clients are always those who spend the greatest amount of money. It is important to consider all clients and anticipate their future insurance needs. Most important clients can be those who impact your brokerage by influencing others.

Front 4

Some of the signs that a relationship may be “at risk”:

Back 4

Relationships at risk can be identified by reviewing your clients patterns of behaviour.

1) lapse coverage

2) reduce coverage

3) place new acquisitions with another company

Front 5

What a brokerage can do when it recognizes that a client may be taking business to the competition:

Back 5

Brokerage must try to find out the source of dissatisfaction, or the reason the client decided not to come back. If possible, the brokerage may make a counter offer that the client will find attractive.

Front 6

How employees satisfaction affects customer satisfaction: (this is the internal vs external quality service question)

Back 6

Poor service impacts brokerage profitability.

Employee’s satisfaction contributes to the client’s satisfaction.

Internal quality service is a result of workplace design; job design and decision making latitude; employee selection & development ; and rewards & recognition

High Internal quality service = employee satisfaction, which helps with retention & productivity. This creates high level of external quality service which = client satisfaction/loyalty which = increased revenue and increased profitability.

Front 7

3 benefits of building strong client relationships:

Back 7

1) Retention keep clients coming back. Residual income and profit exists in having long-term clients. Marketing efforts should be directed at keeping existing clients satisfied.

2) Referrals exceptional service leads to positive word-of-mouth business and referrals. This is an important source of “natural” advertising and promoting your business.

3) Recovery mistakes happen, fast recovery from mistakes allows a brokerage to turn an angry customer into a loyal customer.

Front 8

The areas a brokerage must focus attention on to properly implement the client relationship management strategy:

Back 8

1) Client activity focus on products and services the client already uses. Knowing what and when to offer and to who, increases your client satisfaction.

2) employee activity tracking employee progress motivates employees ability to positively impact client relationships. Measure performance by tracking: client relationships and interactions, product sales, employee sales and service abilities, branch performance.

3) process effectiveness implementing systems to make procedural activity easier allows for employees to spend more time building relationships. Brokerages should review Employee mix: right blend of sales and service aptitude. Tasks & division of duties: clearly defined roles, as to not distract client-related issues. Client needs and perception: client needs may differ, brokerage should reflect the specific needs of your clients. Office design: goal is to meet the client’s definition of convenience and accessibility. Telephone System & Protocol: navigating a complex telephone system creates a negative client experience.

4) loyalty recognition recognize and reward clients who consolidate all their insurance products in one brokerage, provide referrals, have been long-term clients.

5) consultative selling not a hard approach but rather a refined sales process- offering clients products and services they want.

6) financial management brokerages should invest in employee training, development and technology.

7) commitment the success of relationship management depends on the dedication of all employees and management.

Front 9

4 ways in which employee activities are measured:

Back 9

1) by client

2) by product

3) by employee

4) by branch

Front 10

The factors which influence process effectiveness:

Back 10

1) employee mix

2) tasks and division of duties

3) client needs and perception

4) office design

5) telephone system and protocol

Front 11

4 ways in which employee activities are measured:

Back 11

1) by client relationships and interactions

2) by product sales

3) by employee sales and service abilities

4) by branch performance

Front 12

Why commitment is so important to the client relationship:

Back 12

The success of relationship management depends on the dedication of all employees and management.

Without the long-term delivery of quality of service and value, relationship management will fail.