Professional skills: Satisfied clients vs loyal clients

I believe that selling personal protection is an art form and to many advisers, a way of life. They live by the mantra of wanting to create the best solutions and outcomes for their clients.

An industry which might often be viewed from the outside as being about a tiresome and costly necessity, is in most cases, proffered by caring professionals who go to great lengths to advocate all the benefits of protection to their clients, ensuring they are covered sufficiently and compliantly to protect their financial futures.

As an ex-adviser myself, who sold hundreds of policies over a 30-year journey, I know it's vitally important to understand the different components required to write a large volume of business and to become as successful as you can, whilst maintaining high standards of compliance and efficiency.

Your clients reflect you and are vital to running a successful business.  Understanding and trusting this concept is vital to growth and business sustainability.   On the flipside, if you have very little or no continuous business it can lead to self-doubt and advisers can become reliant on receiving new leads continuously, a hard pill to swallow.

There are two main types of clients you will either come across or attract, depending on how you run your business currently and what changes you are willing to make to improve the quality and quantity of business that you write. These are "satisfied clients" and "loyal clients" and there is a distinct difference between the two.

Satisfied clients

A satisfied client will normally be recommended by an existing satisfied client or may come through a social media marketing campaign, through Google searches and other routes where the client has somehow ‘found' you.

Satisfied clients make their buying decisions based around the following:

1. Price sensitivity: They are highly sensitive to price changes and often seek the lowest possible cost for insurance.
2. Short-term focus: Their primary concern is immediate savings, rather than long-term benefits or quality of cover.
3. Comparative shopping: They often compare multiple options and choose the least expensive one, sometimes regardless of other important factors that must be considered.
4. Minimal loyalty: These clients are less loyal and may switch advisers and providers frequently, if they find a cheaper option.
5. Basic expectations: They often expect basic terms and are less concerned with additional features, quality of advice and reputation.

In other words these clients just want to arrange some insurance and are not particularly bothered by any other factors. They will not see the value you bring to the relationship, because the relationship element is not important to them.

Satisfied clients will come and go away again, just as quickly.  However, it remains your duty, responsibility and obligation to advise to the best of your ability and to provide best outcomes for your clients.

Loyal clients

Profitable and successful businesses are not built on satisfied clients. They are built on loyal clients who buy on value.

Loyal clients who buy based on value identify with the following:

1. Quality and performance: They prioritise high-quality products, advice and services that meet their needs effectively.
2. Long-term benefits: These clients consider the long-term benefits and total cost of the insurance, other products that might become suitable over their long-term relationship with the adviser.
3. Holistic comparison: They compare options based on a comprehensive set of criteria, including features, brand reputation/insurer, customer service, and after-sales support.
4. Higher loyalty: Value-driven clients tend to be more loyal, sticking with providers and advisers that consistently deliver value and meet their expectations.
5. Willingness to pay more: They are often willing to pay a higher premium for superior quality and products, better service, and a more satisfying overall experience.

Loyal clients value the relationship that they have with their adviser, they value the service you are so passionate about giving them, they value everything about you and what you can offer them.   You may even form long-term friendships with some clients, but ultimately the loyalty forged goes far beyond cost alone.

Loyal clients recommend other loyal clients if you approach their requirements sensitively and effectively, give a great service and demonstrate that you genuinely care.  If you don't care, you probably in the wrong business and will not achieve the growth you aspire to, of a solid and profitable protection business.

Relationships are your true foundations.  Start building yours today and see your business journey evolve as it becomes ever more exciting and rewarding.