Editor’s note: This post was originally published on 3/28/17 and has been updated for accuracy and comprehension.
You already know it.
You’ve heard it.
But it’s still hard to change.
Your customers are changing, which means you need to adjust the ways you connect with them.
Here's what you need to know about meeting your clients where they are.
How consumers shop: yesterday vs. today
Yesterday: They researched by talking to salespeople or reading about the product in brochures and such.
Today: The majority of clients do their research online.
Yesterday: Clients sought personal recommendations from family and friends only.
Today: They trust online reviews as much as a review from a person they know.
Yesterday: People maybe checked their email once or twice a week. A smaller group of consumers may have checked email once a day.
Today: The majority of consumers check it daily. Millennials check in with their smartphone 43 times every day!
Yesterday: Consumers expected, and even welcomed phone calls from an insurance agent.
Today: Most people don’t want to talk to you – or any other marketer – on the phone.
Yesterday: People didn’t spend a ton of time online.
Today: Even Baby Boomers spend about 2 hours a day online.
So, it's clear that consumers are “connected” to digital tools. And if you want to connect with prospects and customers, you need to be where they are.
Today's consumers value relationship
But that doesn’t mean you have to compete on price. In fact, you probably won’t win that war anyway as an independent life insurance producer.
You’ll want to focus on the value of the customer over their lifetime, which can be as much as 700 percent more than the customer who values price the most.
These are special clients – the ones that provide huge value to your business. That’s because:
- They value insurance and the role it plays in their lives.
- They value the peace of mind it brings.
- They value what you bring to the table as an advisor and advocate.
What more could you want?
But there’s more. And it’s perhaps the most important factor.
They value relationship.
With you, specifically.
You can make this connection happen with modern technology.
Capitalize on online connections
You don't have to burn your call list or stop attending networking events. (They can work!)
But today's consumer wants an unobtrusive way to get to know you online first.
This is where they want to do their research and learn about their options.
Provide value on social media, your website, blogs and emails.
Keep in mind, alone, none of these will work.
But with relationship, they become like magic.
Numbers don't lie
You don’t have to take my word for it, though. Studies back up this notion that relationship powers a solid life insurance producer-customer connection, which leads to higher customer lifetime value.
When a customer is loyal, they:
- Renew at a higher rate: 97%
- Buy more life insurance: 25% will purchase more insurance items than a client who isn’t loyal
- Refer more frequently: 2.5X more than a non-loyal customer
Overall, they deliver a lifetime value that’s seven times higher than a customer who doesn’t have a connection or relationship with you.
Imagine if 50% of your book of business was loyal, dedicated customers who had a deep connection with you. You’d get a lot more sales out of this group for less money than if you went after the group of customers who DO care about price.
Build relationships, grow your business
The best way to grow your business and connect with clients in the digital age is to pursue relationship.
Embrace digital technologies that help you connect with consumers, and then add the special ingredient
How are you using digital tools to connect with customers?