Your CSRs are the key 

Many of our clients have identified their policyholders as A, B, C  and Y customers. What are the criteria for each category?  

There is no set of rules. Each agency sets its own criteria for each category. Types of criterion are: full account activity, longevity with the agency, value of the account, potential growth of account income, ease of doing business, referral activity, testimonial givers, payment record…and more. 

Generally speaking, our agency clients view C’s as customers who are price-driven, and likely to have a short retention span. But that’s not the only criterion. 

What about identifying other C's and the Y’s (Why are we doing business with them!)?  Ask your CSRs.  If you ask them to name customers who they have difficulty servicing, they will give you specific names!   

Chances are, your CSRs have identified the least profitable C’s and the unprofitable Y’s---customers you may want to encourage to leave.