There’s no denying the long-term value of customer loyalty. It’s key to consistent business, dependable financial forecasting, and helps you stay afloat even when the business waters become turbulent. With the integration of technology in almost every industry, customers have grown to expect a lot from their brands. Not to mention, within a minute, they can compare and contrast their buying options. Needless to say, customers have become very savvy, and small business owners have had to adapt to stay relevant.
Of course, branding, product, quality control, and customer interaction all play a significant role in retaining customers, but have you ever thought about how your insurance policy can impact customer loyalty and satisfaction? The seemingly small decisions you make with your insurance agent can not only impact your business’s overall financial health, but also its’ ability to address customer trust.
Let’s explore how a commercial policy can support your efforts in building a strong customer base:
Many of our small commercial clients adopted an e-commerce business model to expand their markets and stay connected to new and existing customers. This was certainly evident through the pandemic. Whether you sell products online only, in conjunction with a storefront, or work as a consultant from home, anytime you hold customer data, your customers depend on you to manage your cyber risks. A breach can happen to the most careful and can lead to customer distrust. Cyber Liability is a coverage that directly helps you if this happens. Essentially, this provides financial support so that you can react appropriately and proactively notify, investigate, amend, and build further safeguards. This all filters back into rebuilding customer trust and communication.
There are multiple industries that use invoices and accounts receivable. As much as you may trust your customers, this past year and a half has shown us that life is very unpredictable and can strain people’s ability to pay what’s due. That’s why it’s wise to consider a coverage called Trade-Credit Insurance. This helps protect your accounts receivable when a customer defaults and fails to pay. Typically, this appeals to businesses who bring in more than $10 million in revenue, but this is certainly a worthwhile evaluation for any business that carries substantial receivables. In addition, the carrier will help you determine if your customers are credit-worthy before you extend terms. Gaining customers is certainly the goal, but you also need make to make sure you are targeting and retaining the right customers for your business. Afterall, you want to be available for long term growth.
Ethics and your Brand:
Studies have shown that Gen Z’s and Millennials want to feel like they’re making a difference with their wallets. As a result, they’re watching how you as a brand treat your employees, source your products, and navigate complex situations with your customers. Every insurance policy should include foundational coverages that address risks associated with these customer concerns – from your product or services, vehicles, employees, and yes… the customers themselves. Coverages like General or Professional Liability help you resolve accidents swiftly, without negatively impacting your business model. For example, if someone slips and falls, this type of customer will need to see that your business is willing to make amends. While that patron may not be back immediately, they will be able to talk about how you handled the accident, which if done well, can strengthen your brands’ reputation.
A thorough commercial insurance policy will ultimately help you navigate the unpredictably of business and interacting with human beings. The goal is to make sure that your various liability gaps are filled so that you can be resilient and confident that your policy supports your efforts in building a strong customer base. We will always prioritize the health of your business and the customers you serve.