Commission Rebate? To do or not to do?

[MJB197]

Background: I work in an insurance brokers, regular poster but preferred to enter anonymously for this.

This year we made a decision in my job to rebate 50% of commission on all new commercial business through the door in year one rather than compete with lesser covers, seems to be a popular trend in commerce at the moment to offer some form of discount, recession and all that...

Still a little sceptical of the long term effect of offering discounts, does it belittle our service? Just wondering if anyone had any opinion, all feedback and experience most welcome.

 

[Ravima]

why would you think it would 'belittle your service'?

It certainly belittles your earnings, especially if you are on any type of bonus!

is it not easier to keep a customer, rathern than to lose and have to replace?

 

[Joe Hill]

All I can say is that as a consumer of financal services this is what I want to see - I'll always look out for the firm that gives something back and I'll always recommend then to my friends.

 

[MJB197]

All I can say is that as a consumer of financal services this is what I want to see - I'll always look out for the firm that gives something back and I'll always recommend then to my friends.

Thanks for the positive feedback.

Yes almost always easier to retain existing than to win new but should you really look at the two in conjunction, can the success of one cloud the potential success of the other?