Client Retention: Quick Stats & Tips to Help Keep Your Renewals
Client retention is extremely important to Medicare insurance sales because, over time, renewals can become the most significant part of an agent’s income. Yet, too often, the day-to-day pursuit of new business leads to pushing retention efforts aside and we lose focus of the client base we worked so hard to establish. So, let’s check out some significant stats that reinforce how necessary it is to keep our customers:
• 80% of future profits will come from just 20% of your existing customers
• It costs 16x more to bring new customers up to the same level as current ones
• A 2% increase in customer retention can lower costs by 10% or more
• 68% of customers leave you because they perceive you are indifferent to them
• A 5% increase in customer retention can lead to increased profits of 25-95%
These are just a few highlights from a host of statistics. And, depending on the insurance products you sell, you can probably see the relevance of each. With its importance in mind, here are a few tips that can help improve client retention:
Keep informed. Clients consider you an expert on everything related to Medicare insurance. AHIP testing and certifications help with overall industry and plan information, though the real value agents often offer is knowledge of the local market: hospital & doctor networks, dentists, pharmacies, social workers, food banks and other resources that provide customers with a more complete experience and/or save them money.
Stay in front of current customers. Send hand-written thank you cards to new clients. Write a letter of appreciation and send it to every customer each year. Send birthday cards. Consider seasonal, self-branded postcards with health tips tailored to your clientele’s age/lifestyle. Monitor social media accounts regularly and instant message current clients on holidays, anniversaries, and other special occasions.
Build your brand. Established brands instill trust through recognition, and trust fosters loyalty. Developing a brand image, tagline, company logo and the other elements that build a recognized brand within your community does more than attract new customers, it can significantly help keep current ones.
Get feedback. Ask current customers how you can improve their experience. Conduct surveys online, in-person or by mail. Make appropriate changes based on what you hear.
Host events. Few things say “I’m grateful you’re a customer” more than an Appreciation Event. This can be something as simple as an ice cream social. Such events won’t break the bank yet go a long way toward creating client loyalty.
Sometimes it’s the little things. Have bottled water on hand and set out a dish of fresh snacks at the office. Jot down the names of spouses, kids, and pets to help you remember so you can mention them by name the next time you meet. Smile and let your personality shine through in your personal interactions.
Dig for data. It’s important when analyzing retention metrics to find out why clients are leaving. Are other agents acquiring your customers? Are the big call centers? Are you experiencing attrition due to clients moving out of the area? Each scenario requires a different marketing strategy in order to retain the most customers possible. In short, knowing why you’re losing customers is key to finding out how to keep them.
At the end of the day, client retention isn’t rocket science. It’s more vigilance and a series of steps to help ensure you continue earning the business of the customers you worked so hard to acquire in the first place. While some attrition is to be expected, boosting retention rates even slightly can have significant long-term effects on overall revenue.
As a National Marketing Organization that works with over 5,000 independent agents, we understand you must retain clients and generate new leads in order to grow your business. That’s why we work diligently to provide the resources necessary for successful marketing. If this information is valuable and you want to know more about the services we provide our agent partners, please contact us at marketing@berwickinsurance.com or 888-745-2320.