Client retention should be at the top of every agent’s mind. While it’s easy to get lost in the hunt for new leads, you need to retain what you’ve already built in order to grow your business further.
This may seem obvious but in the competitive and saturated Medicare market, client retention is especially important. Your clients are constantly seeing ads and messaging from other agents and they are likely to give them their business if you have not fostered a relationship with them.
The importance of client retention can be broken down into two main factors:
It benefits your business
New sales are not the only way to make money. In Medicare sales, an agent can potentially earn unlimited year-over-year income from renewals, but only if you retain the clients you have. These repeat customers are more likely to generate referrals, which can become a primary lead source.
If you have fostered your relationship well, your clients may also come to you for advice on other forms of insurance like final expense. Having these other products available is a great way to make sales outside of the AEP.
Here are some quick numbers to quantify the benefits focusing on retention can have on your business:
- Increasing client retention by 5% could increase profits by 25-90% (F. Reichheld of Bain & Company)
- 65% of a company’s business comes from existing customers. (Customer Service Institute)
- The probability of selling to an existing customer is 60-70% (Altfeld)
- 82% of companies agree that retention is cheaper than acquisition (Cross-Channel Marketing)
It benefits your clients
Despite the digital information revolution, a recent study by Accenture showed that about 77% of consumers still prefer to be advised by real human beings. Having you as their trusted industry insider will reassure them that they are making informed decisions.
After the enrollment process, you are there to help them understand their benefits and how to get the most out of them. This includes helping them with claims questions, showing them how to use their available programs and informing them about others they may qualify for.
Remember, you are a “Senior Market Advisor,” not just a salesperson!
