Caib 4 Chapter 7

Front 1

Identify 4 levels of client relationships and briefly describe each.

Back 1

Hands on - Client interaction that is personal and close. ex. Doctor/Dentist/Hairdresser

Face to Face - Client interaction on a regular basis in a personal environment; but does not involve more than a handshake.

Distant - Less frequent contact and less likely to be a meeting face to face (phone, email).

Brand - Connection that consumers have w/ major brands (Ex. Starbucks)

Front 2

Four factors that increase profitability.

Back 2

1) The longer they deal w/ the brokerage, the more money they spend.

2) Long term clients are less price sensitive.

3) Long term clients make referrals.

4) Long term care is less costly to serve because brokerage knows clients needs and wants.

Front 3

What clients are most important to the brokerage?

Back 3

Those who stay with the brokerage long term and those who are influential in the community spreading a positive word about the brokerage.

Front 4

A relationship might be at risk when...

Back 4

a. Clients purchase products from competitor or reduce their coverage's.

b. Client lapse coverage.

Front 5

In order to retain clients once at risk, the brokerage should...

Back 5

a. Determine reason for dissatisfaction (correct the problem)

b. Counter offer.

Front 6

** The service profit chain (how employee satisfaction affects customer satisfaction)

Back 6

INTERNAL QUALITY SERVICE is the result of workplace design, job design, decision making, employee selection, developments and rewards. When EMPLOYEES ARE SATISFIED, this leads to INCREASED PRODUCTIVITY and EMPLOYEE RETENTION which then leads to BETTER EXTERNAL SERVICE QUALITY and CLIENT SATISFACTION. The result is LOYAL CLIENTS who feel valued. When clients feel valued the brokerages PROFITABILITY AND REVENUE INCREASE.

Front 7

3 Benefits of client relationship's

Back 7

a. Retention - of clients with low loss ratios and low account receivables

b. Referrals - Increase sales and enhance profitability of the brokerage

c. Recovery - Strategies help improve customer loyalty

Front 8

Seven Success Factors brokerages need to excel and ensure successfully implement the client relationship management strategy.

Back 8

1) Client Activity- services client is already using.

2) Employee Activity - Tracking employee progress (By client, product, employee, branch)

3) Process Effectiveness - Employee mix, tasks and division of duties

4) Loyalty Recognition - Be on familiar terms with loyal customers.

5) Consultative Selling - Making products available and awareness.

6) Financial Management - Track cost savings and control expenses.

7) Commitment - dedication by employees and management.

Front 9

** Four ways Employee Activities should be measured.

Back 9

1) Tracking THE CLIENT to see who they purchased from, what and why they purchased it and how profitable they are. (Who, what, why, how)

2) PRODUCT can be tracked to determine it's USAGE and PROFITABILITY.

3) EMPLOYEE MEASUREMENT can be done to monitor when employee's are DELIVERING QUALITY SALES, SERVICE, AND BUILDING RELATIONSHIPS.

4) BRANCH TRACKING can be done to track sale performance and profitability of individual brokerages.

4)

Front 10

*Factors which influence process effectiveness

Back 10

A. Ensuring that the right EMPLOYEE MIX of sales and service professionals.

B. TAKS AND DIVISIONS OF DUTIES clearly outline each employees role and that they are adhered to.

C. Assess the CLIENTS NEEDS AND PERCEPTION.

D. SALES AND SERVICES PROCESS'S may need to differ from office to office.

E. Ensure that OFFICE DESIGN and location are accessible and convenient for the client base that you want to serve. The goal is to meet the clients definition of convenience and accessibility.

F. Review the PHONE SYSTEM AND PROTOCAL. If a known client does not leave messages, do not put him through to voicemail.

Front 11

Commitment?

Back 11

Is important for the success of a client relationship because without dedicated employees and the long term delivery of quality service and value, the relationship will fail.

Front 12

Why must brokerages be aware of the costs of maintaining a client relationship management strategy.

Back 12

Because it costs the brokerage both financially and in terms of HR. As a result, brokerages should track expenses and benefits of these strategies.