The Referral Network System Blog

Relationship V. Transaction, Part I: Why Creating a Lifetime Value From Clients Is Important

I had a conversation with an insurance salesman recently who told me that "Clients are a pain in the ass." He isn't interested in creating a relationship with his clients because he wants to be able to squeeze maximum profits from his clients and doesn't want to answer to them when they find out they're over-insured or that they've been overcharged.  He puts all his marketing dollars into prospecting for new clients using cold calls and internet marketing.

It's all about the transaction, baby.

But what he's failing to realize is that his clients are where the money is. He could literally double his revenues while actually reducing his marketing costs if he valued the client relationship more than the transaction.

Want proof that creating client loyalty is paramount to success? Consider this:

Welcome to The Referral Network System Blog

Whenever I speak to groups of professionals and entrepreneurs, I always ask two questions. First I ask: "Are your best and most loyal clients those who are referred to you?" and nearly every person in the room raises their hand high in the air. They all love referrals. Then I ask: "How many of you have a system for generating a constant stream of high-quality referrals?" and the hands all come down. I'm guessing this means they all feel lucky.

I've found that, to be successful at producing referrals, you first need to build strong relationships with your clients and business associates. Your first transaction with a client should be the beginning of the relationship, not the end. But that means having a system that allows you to stay in touch, provide first-rate customer service, and  show your appreciation.

This blog is designed to provide information to professionals and entrepreneurs on how to build their businesses by referral. The focus will be on ways you can:

• Create a Lifetime Value from Your Clients
• Maximize the Value of Your Database
• Unlock the Potential of Your Business and Personal Networks

I am really looking forward to sharing my knowledge of cultivating referrals and building life-long business relationships with you, and I look forward to your comments.

Denise Kotula

President, DK Strategic Consulting, Inc.