In this column, we usually talk about sales tips for the sales process, covering everything from prospecting to closing the sale. But retaining customers is just as important as obtaining new ones. As the old saying goes, it’s easier to keep a client than to gain a new one.
Voluntary benefits are in a definite growth phase. LIMRA recently reported that seven in 10 employers now offer voluntary benefits to improve morale for their existing employees in addition to attracting and retaining new talent. Voluntary benefits are increasingly important to employees as well, reflecting their desire to choose the benefits that are important to them.
A July 1 article in BenefitsPro.com by Marty Traynor illustrates the value (as in your commission check!) of retaining voluntary customers:
Take brokers Jill and Joe, for example. Each of them have 100 groups with 100 employees. Jill keeps 90 percent of her groups and 88 percent of employees every year. Joe keeps 85 percent of his groups and 80 percent of employees every year.
While the difference in keeping customers is small, the extra value for Jill is big. After only three years, her revenue is ahead by 20.5 percent ($199,000); in 5 years that jumps to 32.2 percent ($390,000) and in 10 years, 51.4 percent ($713,000). Wouldn’t you prefer to be Jill than Joe?
Consider these four ways to keep voluntary customers that Traynor offers in his article.