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The power of word of mouth advertising
A Customer Service Representative from one of our New York agent sessions offered ear-opening information from a former employer, a tourism association. While the information does not pertain directly to the way insurance customers might react to your services, there are some clues. 

 

The tourism association reported that people who have a good vacation experience tell 8 other people.  People who have a bad vacation tell 18 other people! 

 

 

You may deduce other things from this example, but to me, it suggests that insurance agents should be proactive about measuring customer satisfaction and loyalty.  

 

Is there bad news being passed along to prospects by customers?   

Is there good news being passed along that can generate new business?  

 

Here are a couple of practical ways to find out. 

 

. Survey five customers every month to find out how you’re doing. 

. Survey every customer who has a claim after (and during) the  settlement  process. 

. Use those “unpaid sales people”, your satisfied customers. Get referrals  from them---their friends, relatives, fellow workers. Ask if you can use  their name when you make follow up contacts.  

 

We have always known that word of mouth advertising is powerful.  Today, however, creating favorable news is even more important.  Why? Because word of mouth now includes:  e-mail, text messaging, blogs, and viral networks. The word, good or bad, travels faster and wider than ever! 

 

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