Are you worried about remaining profitable?

Many advisers focus on bringing in new clients, but the time and money spent on keeping existing clients is always more cost effective. More than half of advisers in the following survey have concerns about remaining profitable. I think that with RDR now here looking after your existing clients are key to making a profitable business.

Here are some suggestions:

• Put an 'annual review' link on your website.

• Write to existing customers to explain that you wish to give their policies an annual review to ensure that they are achieving their goals and aspirations.

•  Doing this will better position you as their expert and trusted adviser (as opposed to just a salesperson). Someone who puts their interests first.

• Explain that you will phone them to agree a convenient time to do this.

• Tell them how long this will take, and what the benefit will be.

• As part of the review you may be able to up-sell/cross-sell - but be subtle. Remember that you are a trusted advisor not a salesperson.

• Once they are completely satisfied, and delighted with your advice and customer service, ask for two (or more) referrals.

Using a referral should be done with care. 

If you give referral fees you can run into a situation in which the referrer claims he gave you a referral and you disagree. So if you do use a fee be upfront about it.  Check that your customers are comfortable about the idea.  

Money doesn't breed loyalty.  Instead it is friendship, trust and a positive relationship that create loyalty to you and your business.  This is why thank you cards, birthday cards etc work so well.
Try to keep any payment as a little thank you, for example a pair of cinema tickets. 

Remember that marketing needs to be done with care. Your direct marketing campaign needs to adhere to:

• The eight principles of the Data ProtectionAct 

• The Privacy and Electronic Communications Act 2003, amended 2011 (if it includes telemarketing or email)

• And the British Code of Advertising, Sales Promotion and Direct Marketing (CAP) code. 

Note that the DMA’s Code of Practice outlines legal requirements, while its Best Practice guides summarise what’s good practice but not a legal requirement.