BISA Magazine - Quarter 3, 2017 - 28

SPECIAL SUPPLEMENT: SPOTLIGHT ON CUSTOMER RETENTION

A Simple Retention Solution
for Ever-Changing Needs
By Joe Maringer, National Sales Vice President, Great American Insurance Group, Annuities

n today's busy world, we
jump from task to task and are
constantly looking for ways
to streamline, simplify and
synergize. From your local supermarket to the technology you have
right in your home, today's savvy
consumers (and businesses!) want
bundled solutions.

to continue moving your business
forward, retention is just as important
as acquisition, and retention requires
increasing your array of products and
services. To do so, you need both access and the ability to offer tools and
services that address customers' evolving wants, needs and expectations.

Think about what's located within a
grocery store. There's often a coffee
shop, a florist, a bank, sometimes
even a doctor's office. Businesses
have figured out that customer satisfaction and loyalty rates increase
when they can offer quality service
and one-stop shopping.

Insurance Products in
an Advisory World?

Banks and other financial institutions
have mastered the art of the one-stop
shop for decades. The more products
or percentage of the customer's wallet
are in house, the better the likelihood that the customer relationship
remains intact. Inherent in retention
metrics are lower costs and better
revenue earning opportunities - and
more engaged customers.
In their book, Human Sigma, Gallup
researchers John Fleming and Jim
Asplund state that "engaged customers generate 1.7 times more revenue
than normal customers, while having
engaged employees and engaged customers returns a revenue gain of 3.4
times the norm."1 Further, research
shows that it costs nearly seven times
as much to acquire a new customer
than it does to retain an existing one.2
So, what does this mean to you?
Quite simply, it means that in order

The carriers you work with are likely
committed to developing products that
help you attract new money. They also
strive to provide you with tools that
will help you retain the customers you
have. Consider the case of advisory insurance products, which, for customers
who prefer to pay directly for advice,
may provide the boost they need to
increase their earning potential and
protect their principal.
Let's look at why a fee-based fixedindexed annuity may be beneficial.
When interest rates rise, the share
price of long-term bond funds fall,
meaning bond fund investments can be
risky in a rising interest rate environment. This could cause the value of
a fixed income portfolio to decrease.
Fixed-indexed annuities can help avoid
the negative impact of rising interest
rates because they credit interest that
is based, in part, on the performance
of a market index. Additionally, they
offer tax-deferred growth, annual
penalty-free withdrawals, the opportunity to receive lifetime income, and
principal protection.

While bonds may lose value in a
rising interest rate environment,
equity allocations can be volatile for
individuals with a shorter investment
horizon, like those in or nearing
retirement. Equity markets are near
all-time highs, but as history has
shown us, when long-run bull markets
end, the decline can be dramatic. The
average bull market lasts around five
years, so now may be the time to discuss repositioning some of those gains
into a lower-risk option that better
aligns with the customer's profile.

The Bottom Line
Consumers increasingly want choice.
Increasing your offering to include
more financial solutions, such as a
fee-based fixed-indexed annuity, can
be an effective way to retain existing
clients and grow your customer base.
Your customers trust you, and they
are looking for recommendations
from your advisors to get them better
results. Expanding your portfolio of
products and services will demonstrate your commitment to more comprehensively address your customers'
wants and needs. ▲

Joe Maringer is the
National Sales Vice
President at Great
American Life Insurance
Company. Contact
Maringer at (800)
438.3398, ext. 11999 or
visit www.GreatAmericanAnnuityFI.com
for more information.

1. Source: Human Sigma: Managing the Employee-Customer Encounter, John H. Fleming, Ph.D. and Jim Asplund
2. Source: http://www.spoken.com/blog/2010/10/cost-of-acquiring-a-new-customer-6-to-7-times-more-than-keeping-exisiting.html

Advertorial
www.bisanet.org

http://www.GreatAmericanAnnuityFI.com http://www.spoken.com/blog/2010/10/cost-of-acquiring-a-new-customer-6-to-7-times-more-than-keeping-exisiting.html http://www.bisanet.org

Table of Contents for the Digital Edition of BISA Magazine - Quarter 3, 2017