But first you must change the categories. The old way was to sort by name, address, city/state/zip and phone number, not necessarily in that order. Sales representatives used those criteria because they were expected to provide products and services to customers within a reasonable driving distance of their office location. They were expected to qualify people for products and services very early in the prospecting process. They, of course, needed to know prospects’ names, addresses, and phone numbers to ensure their after-hours marketing efforts weren’t going to be fruitless.
What percentage of today’s books of business are set up on those sort criteria? 50%? 70%? 90%? How territorial are the salespeople that serve those books of business? Over the top, right? They base their depth of relationships on the number of products and services they have sold their customers over the years. Now for the question that’s going to raise a lot of eyebrows: What percentage of customers bought before either party to the sale knew each other personally? How many of them would stay with their representative even if their best friend worked for a competitor with a competitive price point? No one reading this can honestly say that this has never happened to them. It happens all the time.
It’s always been said that selling multiple products to your customers insulates your book of business and establishes a consistent revenue stream by increasing retention. There is no disagreement that more product lines increase retention FOR THE BRAND. Where the disagreement arises is in the argument that customers who own a broad array of products and services distributed by one brand will remain with the representative that initially sold them even when someone enters the picture with whom they share a deeper personal connection. Herein lies the quandary: Does the brand care more about retaining their customer or which representative is serving them?
The old way of ensuring retention is no longer enough. Products and services are now automated. Customers no longer have to “sign here, now here, now here, now here”…on each page of a ream of paper the applications were printed on. They sign ONCE, ELECTRONICALLY, if even then. The myth that more product lines makes it harder for people to leave, and thus, increases retention, is BUSTED. Increasing retention today means sorting on an entirely different set of criteria that most companies don’t even have sortable categories for. They don’t even know what data they need.
Whoever figures that out first WINS BIG.