Client relationships in any industry are built on trust. The stronger the trust, the stronger the relationship. This is especially true in the insurance business because of the very personal and sensitive nature of the products we provide.

Clients count on their advisor to not only sell them a product that will protect their family, but to understand that the purchasing of insurance goes beyond the transfer of money—it is a passing on of a legacy and the foundation of peace-of-mind for many people.

Transactional sales vs relationship marketing

In the past, many insurance professionals focused on quick, low-investment sales with minimal interaction. Today, the focus has shifted. Successful insurance advisors now put relationships first. Taking the time to build, nurture and maintain strong client relationships is more valuable than making fast sales because it leads to repeat business and referrals. This approach values quality over quantity and helps create a trusted referral base, so clients don’t have to search for a new advisor when their needs change.

The importance of Know Your Client

One of the key components of a client relationship built on trust is the regulatory process known as Know Your Client, or KYC. KYC involves collecting detailed personal and financial information to understand the needs and objectives of your clients. As an advisor, you are encouraged to view KYC not just as a formality and a regulatory requirement, but as a foundation for building sustainable, trusted relationships.

Building a solid relationship takes time

Building solid client relationships based on a foundation of trust takes time and patience. It’s a lot like making new friends. During the relationship-building process you’ll want to encourage your clients to express their needs openly while you practice active listening and professionalism. And, just like building a friendship, small gestures can have a big impact. If possible, consider using Customer Relationship Management (CRM) tools and systems to organize client information and set reminders so you can maintain consistent communication with clients and never miss an opportunity to connect, like sending a birthday wish, for example.

It’s all about trust

Trust is identified as a cornerstone of client relationships. You can build trust through knowledge, confidence, transparency and feedback. Consider sharing company claim statistics and service standards with clients and always be honest about not knowing the answer to a question. This level of transparency helps to foster credibility. As well, always ask for feedback to understand what clients value most. This feedback will help you improve your service, introduce opportunities for referrals, and strengthen your client connections.

Social media can play a role, too

Think of social media as the business card of today and a key component of client acquisition and retention. You can use social media platforms to obtain and engage clients and help build your reputation for authenticity and trust. To best use social media, it is important to first choose the right platform to reach your target audience and then create content that is true to who you are as a person and as an advisor. Personal touches in online posts, such as sharing professional events or light-hearted moments, can help present you as a “real” person and can build trust with clients.

Building your business as an advisor is dependent on cultivating meaningful, trust-based client relationships through personal engagement, regulatory compliance, digital branding, and continuous feedback. By always being professional, genuine and trustworthy, you can build a business based on trusted relationships that can span generations.

To learn more about the art of influence, listen to our podcast episode, Building relationships that last available at ivari.ca/podcast or wherever you get your podcasts.