Client Retention Vs Client Acquisition
- Thread starter axeman462
- Start date
It's always cheaper to keep a current client than it is to acquire a new client. Right or wrong, my first priority during AEP is my existing client base. With that said, I find most of my clients are willing to handle everything over the phone and via mail/email which allows me some freedom to work with new clients.
Client retention accomplishes both.
1. Keeps the client on the books so I don't have to replace the loss. Every client kept is a client gained for me. I start off at zero clients in my mind each year.
2. The retention efforts, allows for an annual discussion, a reminder of why they love their agent, and it always results in many referrals (= client acquisition at no cost).
Others do the churn and burn, and treat clients as a number, and move on to "produce" more numbers. This model works too, but it creates an annual "hunt and shoot" ritual, with no real clients or stability..........just numbers. Spend a lot to make a lot.
To each their own. (I don't do MA, only MS and ACA)
1. Keeps the client on the books so I don't have to replace the loss. Every client kept is a client gained for me. I start off at zero clients in my mind each year.
2. The retention efforts, allows for an annual discussion, a reminder of why they love their agent, and it always results in many referrals (= client acquisition at no cost).
Others do the churn and burn, and treat clients as a number, and move on to "produce" more numbers. This model works too, but it creates an annual "hunt and shoot" ritual, with no real clients or stability..........just numbers. Spend a lot to make a lot.
To each their own. (I don't do MA, only MS and ACA)
NIAMAN
Expert
Agree-Retention and review are primary. I have a book of PDP clients, and they provide referrals all year as people turn 65. Great time to review Med Supps, move to save them money and start the 6 year clock again, if health permits. Drug Plans need annual review, because they are always changing. while cross selling is limited, you get a face to face opportunity to plant seeds. I find that they don't mind coming to the office for this, as they might see immediate cost savings.
- 11,995
Another thing to consider is how competitive that space is. You should have a pretty strong advantage to keeping your current clients so that should be high effective, but trying to win over other people who at this point have been marketed too beyond excess is an uphill battle. Not that you can't win an uphill battle, but go for the "easy" money first.
I personally think it should be client retention as most clients made you their agent because they believed the agent would be taking care of them. Retention can be simply reviewing with them that all their needs are being taken care of.
Additionally, by retaining your clients you may find other opportunities that open as you retain them. Additionally, the new client (from the way I understand it) so please correct me if I am wrong, isn't a guarantee in big bucks (the initial enrollment money). Not only is it easier to keep your current clients, but its easier to keep that money coming to you rather than going to what-ifs. After that is completed, set some time for new clients, but I would ultimately say client retention comes first.
Additionally, by retaining your clients you may find other opportunities that open as you retain them. Additionally, the new client (from the way I understand it) so please correct me if I am wrong, isn't a guarantee in big bucks (the initial enrollment money). Not only is it easier to keep your current clients, but its easier to keep that money coming to you rather than going to what-ifs. After that is completed, set some time for new clients, but I would ultimately say client retention comes first.
- Thread starter
- #7
While I think retention is the 1st priority, I believe you have to find a way to do both. Not one or the other.
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