I hope this finds you well and consistently implementing!
Today I’m discussing something that I find to be one of the most important systems in ANY business, including insurance agency businesses-Client Segmentation.
In the 1800’s a gentleman by the name of Pareto came up with a principle called the 80/20 rule. What it means is that in many cases 80 percent of your revenue is generated by the top 20 percent of your existing clients. I have been in business for a long time, and I have done the math time and time again and have found that this principle is pretty accurate.
- – So, does your team know who your top clients are?
- – Are you on the phone with them often?
- – Do you they get preferential treatment when they call in?
…or is your team spending all of their time on the bottom 20 percent of your clients that are always complaining about something and constantly have problems paying their bills on time?
If so, then it is time to put our Client Segmentation system in place. I warn you – this is NOT an easy task. It takes a lot of time and effort, preferably done by someone that is highly detail oriented and talented enough to understand the mindset and to go through your entire book of business.
In our ‘Living Agency Laboratory’ we like to think of all of our clients as an ‘A’ client. This is why our segmentation is by ‘A’ clients, ‘AA’ clients and our top 20 percent, the ‘AAA’ clients. In our agency, we try to pay extra attention to our AAA clients because let’s face it, we’re not spending enough time with them anyway. We are too busy catering to the bottom 20 percent which we systematically do our very best to try to fire – meaning release them, send them on their way.
I can’t tell you enough, Client Segmentation is an absolute MUST DO in any business.
- – Understanding where your clients are coming from, who your most important clients are.
- – Who are the influential people that are your clients?
- – Who are the people that if you touched that client would instantly open five more doors?
The opportunities are endless. Are you ready to take charge of your agency today? Call 800-700-9984 or email me at [email protected]. I’m here and ready to help you Explode Your Profits in 2012!!!