The Two Most Important Factors for Brokers’ Success

Getting started as a new Broker typically begins many years prior to the actual event of becoming your own boss. Most Brokers start their careers within the transportation industry and then discover a gap or niche that simply isn’t being serviced as well as it could be.

Regardless of a brokerage’s beginning, there are two factors that are critical to a broker’s success: Customer Acquisition and Customer Retention.

Customer Acquisition

Perhaps the greatest challenge in building a Brokerage is the ability to attract clients; hence the reason that most successful Brokers come from inside the industry. Most Brokers start their business with just a few loyal clients from their past. Here are some things that you can do as a broker to acquire new customers:

• Shipments are relative to more than one party: If you have a Shipper, you also have a Consignee and sometimes a 3rd party debtor. Do what you say you will do, be transparent with all parties, be proactive, and you might just find yourself a new client within your existing relationships. This may be the fastest way to acquire new clients.
• Be clear with your clients on service, price, and any potential pitfalls you anticipate within the shipment cycle. Many leads come from satisfied clients.
• Ask your clients for leads! If you are doing a great job, don’t be bashful to ask for leads. Your customers genuinely want to see you succeed.
• Build relationships with your carrier network. Carriers are more than just service providers. They can guide and teach you about the transportation industry in ways you might not perceive due to their different perspectives.

Customer Retention

Once brokers start working with a shipper, effective communication and relationship building are critical to their satisfaction and ultimate retention. Here are some things you can do as a broker to build and maintain strong customer relationships:

• Put your clients’ needs first. As a Broker, you must ask questions about the Shipper/Consignee, the commodity, value, damage susceptibility, service level needs, price expectations, and other specifics that will help you understand what your client is trying to achieve. Ask questions—don’t get caught flat-footed!
• Be accountable to your clients. The easiest way to grow your business as a Broker is to be forthright in your communications.
• Be the expert. Clients use your services because of your expertise. When issues arise, it’s your time to shine. Be a solution builder and your client’s advocate—your livelihood depends on your ability to find resolutions!
• Maintain strong relationships with carriers. Having good relationships with carriers is critical for managing exceptions. With a solid carrier relationship, you have a chance at resolving out-of-service shipments by encouraging carriers to act outside their usual procedures.
• Don’t nickel and dime your clients or arbitrarily escalate rates. Maintain trust to keep clients loyal.

Brokers play a critical role in today’s logistics industry. By focusing on customer acquisition and retention, brokers can grow their business and keep our supply chain moving efficiently.

Want to Learn More?

If you’re interested in learning more about how to improve customer acquisition and retention strategies, contact G2Mint today!