Why clients should be forever clients

In my opinion, all your clients should be forever clients. I understand some people do not think that way. When they are starting out (and new to the business) they claim, “I will take anyone.” As they become successful and their practice moves upmarket into the high-net-worth space, they drop their “little clients” who were with them from the beginning. Remember, though, those clients put their trust in you when you were learning the business and have been loyal — and they can be an excellent source for referrals.

Let’s look at some reasons to consider why your first clients should be forever clients.

  1. They are low maintenance. They have been with you since the beginning. They know your procedures and how you do business. They are fine talking with your assistant. They only ask to speak with you in an emergency.
  2. They are your biggest fans. These clients are your cheerleaders. In a business with high turnover rates, they know you are successful and good at your job because of your longevity. They talk you up to their friends.
  3. They can spot business opportunities. They know your range of products because they have “aged” through them. When they see a couple buying their first house or having their first child, they understand their insurance needs. They tell you. They tell them. They tell everybody.
  4. They are fine with your fee structure. They know you are good at your job. They understand you need to be paid fairly. They are not constantly shopping for lower costs and telling you to match that number or they will walk.
  5. They develop new needs as they get older. First, they had children, and then the grandchildren arrived. They downsized their housing and have a lump sum to invest. They want to help send their grandchildren to college. You can help in all these areas.
  6. They inherit money. Smaller clients come in all age categories. Younger ones might inherit money from their parents or grandparents. They need a trusted advisor. In many cases, that is you because of the longevity factor.
  7. They make new friends and get new neighbors. When they downsized, they moved to a retirement community with so many activities and made new friends! Suddenly, they know more people. They have insurance needs too.
  8. You are friends. People do business with people they like. You have built up trust over the years. They have introduced you to the next generation and said, “Buy your insurance from this guy!” You wouldn’t forget a friend, would you?

When you take on a new client, they place their trust in you. They are generally seeking a long-term relationship. I believe you should return the favor.

Bryce Sanders is president of Perceptive Business Solutions Inc. His book, “Captivating the Wealthy Investor,” is available on Amazon.

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