You’ve probably heard about the four P’s of marketing, but have you heard about the four B’s of client retention?

It’s common knowledge that it’s a lot cheaper to keep a current client than it is to get a new one. In fact, business leaders estimate that it costs six times more to acquire new clients than it does to keep existing ones.

Client retention is important for business success, but it’s also an often overlooked principle among health insurance agents and brokers.

The Problem

Many producers seem to accept that many, if not most, of their new individual health plan clients will depart for other producers after a year or two.

Brokers and agents have seen it time and again: Cost-focused customers jump ship as soon as they receive the notice of premium increase just as their plan anniversary looms.

Premiums are going to go up. The rising cost of health care has made cost increases inevitable. From a sales standpoint, however, the real problem is that many agents and brokers often put little or no effort toward retaining their current clients.

That’s somewhat understandable when you’re under pressure to work the new leads and tend to those hot prospects who are ready to complete their application.

The fact remains, however, that investing a little more time in retaining your current clients will yield much greater return on investment than putting all your focus on new leads. With the right tools and strategy, you can do both.

Technology and the Internet give you the resources you need to efficiently nurture current clients so that they return to you when they want to start shopping for a new policy. And understanding the four B’s of client retention will help you create a strategy for success.

1. Be Thankful

You may be providing your clients an important service, but they’re doing you a favor.

The truth is that it’s a competitive market out there, and they can probably find someone who can match the service and expertise you provide. That’s why many agents and brokers rightly send “thank you” letters after the application is first approved.

Being thankful helps build trust and nurture your relationship with each client — which in the end will increase the odds that they will stay with you for their insurance coverage.

It also pays to get in the habit of showing your gratitude during the holidays and especially after they’ve signed on for another year. And with email marketing programs like iContact.com and ConstantContact.com, it’s easy and cheap to send customized and professional thank-you emails.

But don’t use your “thank you” message as a cover to cross-sell another product!

A sincere thank-you letter is simple and focused on expressing your gratitude. Trying to sneak in a sales pitch will make you look insincere.

See Part 2…