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Working With Your Client Base Part 3
How to offer all of your clients, all of your services !
Times are tough, mortgage clients are very difficult to find and then getting the mortgage through to completion, often seems a nightmare. So before you make such a massive effort to find new clients doesn’t it seem sensible to make the most of the clients you already have?
Look at it like this, let’s assume it costs you say £100 for each new average client you get. You might not actually pay someone a £100 for the client but there are advertising costs and the time you take sorting through the two, three, five clients you can’t help before you get one you can. The actual number depends on the way you work and how good your leads are but I’m sure you get the idea.
This £100 average client might make you say £600 in proc fees and a bit of life insurance. That would mean that 5 of them a month would gross you £36,000 per annum minus the £6,000 for the leads making £30,000 net. If you do further advertising to increase this number to 6 a month you would then make a further £6,000 net, bringing your total income up to £36,000 pa.
However, if you could then just sell a little more insurance to these client’s though say the occasional B&C, critical illness cover or even a top up family cover life policy giving an overall average increase of £200 per client that in turn would increase your income to over £50,000 pa. Bearing in mind that a decent critical illness policy brings in over £800 in commission and a B&C around £100 initially and then every year on renewal, I don’t think £200 as an overall average is too high, but even if you are desperately pessimistic and half this amount it’s still over £7,000 per year which is more than you made off the extra clients. And remember if you’ve done a good job, it’s always easier to sell to existing customers than new ones that don’t know you.
This is where the matrix comes in. It’s all very well wanting to sell everything to everyone, but you have to have some way of tracking it. If you have client management software then that will certainly do the job, but if not you can use a simple matrix based on the spread sheet below. As well as the numbers, this gives a graphical representation what’s been sold making any gaps obvious at a glance.
Key : sold, told, not wanted everhere they are getting the product elsewhere or don’t know they need it.
Sold is self explanatory, but remember in the case of an insurance review you really need to do this at least every two years.
Told means they didn’t want it at the time, but that doesn’t mean they will never need it so again, keep reviewing the issue.
Not wanted ever, would only be used in special circumstances such as where a client has a pre existing condition which prevents them taking out CIC for example.
Now if you’re wondering if this is a worthwhile exercise, just grab a handful of client files at random, look through to see how many of them are like Mr Smith in the table above and have been sold everything. Then think about how much money you are losing, by not having fulfilled all of your clients needs. Or just as worrying, who then is selling them these products, are they using a sales matrix? And are they just about to take other business from you?