Brokers should compete on service not price

In this ever increasingly competitive and price preoccupied world, let your competitor reduce his price, you reduce your customer’s risk says Martin Grunstein, an expert at customer service.

Grunstein spoke at a sold out breakfast session at the NIBA Convention last month. He looked at why margins are eroding in the insurance industry (and so many other industries) and what one can do to arrest that decline. He gave “real world” examples to speak about what one can do to get better at attracting and retaining customers.

He started with an interesting analogy and went on to entertain as well as educate a room full of brokers.

“The customer is WRONG almost 100% of the time. In fact most of the time the customer is an IDIOT, just like you and me, but it is your job not to point out their flaws. You are an expert in what you do and whether the customer is right or wrong is irrelevant to the success of your business.”

Grunstein urged brokers to innovate and provide what no one else, not even the most advanced technology can, expertise and good old fashioned customer service.

“If you crush your customers’ ego they will go out of their way to avoid you. The only thing that matters is whether the customer walks away from dealing with you THINKING he/she is right. If you can get that across to your staff there is a good chance you will increase the number of repeat customers.”

He urged brokers and broking businesses to concentrate on value ad, build a reputation of great service and constantly try to better the service.

“What differentiates you from other businesses? If nothing is, no wonder your business is losing margins.”

He said there is a lot brokers have to offer clients and their years in the industry as well as their life experiences are what they should build on to ensure their customers are happy.

“Today’s core product is not tomorrow’s core product, today’s value addition is tomorrow’s core product.”