Medicare Café - The Importance of Client Retention
Congratulations! You made a sale! Now what?
Now you have to make sure that the client doesn’t become a future prospect. A future prospect? Yes. If that client were to buy a different policy from another agent, or from an ad they saw on television, or off a mailer they received in the mail, or any other number of ways consumers can buy insurance.
On Medicare Café, we discuss numerous ways to retain your book of business. Here are 3 reasons you should be focused on retention.
- Your clients are another agent’s prospect.
- You are in the middle of fact-finding at an appointment and learn that your prospect bought their last policy through another agent. Do you tell your prospect to call that last agent since they took care of them before and show yourself out? Of course not. You continue the appointment as you know you will be replacing that agent. Keep in mind that is exactly what another agent will do should they find themselves in front of one of your clients. A retention plan can prevent this situation from ever taking place.
- Current clients are 5-10 times more profitable.
- Keeping a current client is 5 to 10 times more profitable than replacing them with a new client. New clients come with marketing costs, which can be upward of $180+ for a simple campaign. Current clients are kept with retention methods that cost maybe around $20 per client per year.
- You’ll spend 3 times more.
- Once a prospect becomes a client, and that client is happy with their coverage, the next time you present a solution, they are more likely to see the value and take action. This increases retention as the more policies a client has with you, the higher your retention rate.