One of the hallmarks of marketing is developing a profile of an ideal customer.
You pick the customer or niche that fits your business model, and then you keep that niche in mind when you craft any marketing strategy or customer facing material. This helps immensely when brainstorming new lead sources or marketing ideas. An image of the ideal customer informs how you design your website, business cards, trade-shows, brochures, etc. When you understand this person fully, and take action on that information, you become a better marketer than your competitors.
This became clear on school field trip. I chaperoned a trip to a radio station. This was a radio conglomerate with multiple brands and channels stuffed inside their building. Each channel had their own booth and office. One was talk radio, another country, today’s hits, classic rock, etc. In each booth, printed in large letters on the wall was a list of characteristics of their target demographic.
DJ’s, salespeople, and decision makers could not avoid this sheet when performing their daily actions.
Agencies have this list as well. Most don’t have it posted, but the owner knows it, and sometimes the staff. It’s a great idea to get this out of your head and distribute it throughout your organization.
While knowing your ideal customer is critical, what might be equally important is understanding the “Customer You Don’t Want”.
What does that person look like, and what do you do to avoid them?
Here some identifiers to help brainstorm this person:
- Time-wasters. Write down the qualities of a customer that is a time waster. He never offers any opportunity for revenue activity, but demands attention more than normal.
- Late-payer. You chase him each month to give you money to keep their policy in force.
- Frequent claimant. They call in a claim too regularly, or are always asking “what-if” claims questions. Alarm bells ring in your head, suspicious of their potential next move.
- Billing questioner. They pay their bills on time, but have questions every month related to the accounting breakdown of their bill.
- Endorsement happy. Every month they are doing something different to their policy; new cars, new drivers, change in coverage, etc.
- Grumpy & Angry. This one ruins the mood of every person in your office. Every interaction is negative, and you can’t believe they stick around.
- Bad Demographics. Not red-lining, but identifying areas outside your scope of business. if someone contacts you about their homeowners and they live in another hundreds of miles away they might not be the best customers. Million dollar homes are attractive to write, but you might not have the markets for this and trying to fit a square peg in a round hole could generate more work than it’s worth.
There is no doubt that a few of these customers are part of being an insurance agent. Some even have very good reasons to retain as clients.
By identifying them, they give you an opportunity to minimize their influence inside the agency.
If you are an owner, I bet you have a blacklist. Does your staff know it? What do you do in your agency to minimize the bad customer?