According to the Harvard Business Review, acquiring a new customer is five to 25 times more costly than keeping an existing client. (It varies by what study you’re looking at and the industry.) That makes sense. With a current customer, you don’t have to spend time and resources to find them; they are already a part of your business block. You just need to keep your existing customers happy. Investing in a client loyalty program can help.
How can you get started? Below are five tips in creating a health insurance loyalty program.
- Be clear on your objectives: In creating the parameters of your client loyalty program, it’s critical you decide what behaviors you want to recognize and what reward you want to offer to clients. For non-retail scenarios, rewards often take one of two forms: points or gift cards. Your clients can earn rewards for offering referrals, sharing testimonials on social media, leaving positive reviews, and similar activities.
- Analyze your customers: Look at your book of business. What value would you place on your clients? Do you have a lot of repeat business? Do many of your customers purchase multiple products? Is there an opportunity to cross-sell more of your clients? What’s the average length of your client relationships? How old is your oldest client relationship? How long have they been a client?
- Set your budget: How much are you able to allocate to your client loyalty program? How does your loyalty/retention budget compare to your new customer acquisition budget? They should be separate.
- Customer service is key: In a competitive marketplace, like the one we’re in right now, providing your clients with unparalleled customer service can be a key differentiator. Being consistent in your follow up is important, too. Make sure your clients are aware of any value-adds you may offer – like online enrollment, HR support services, Compliance expertise, COBRA, and POP.
- Monitor and adjust: It’s not enough that you create a client loyalty program. You need to periodically review it and make adjustments to ensure you are maximizing your return on investment. Are you running your program using Customer Relationship Management (CRM) program, or is it a manual process? It might start off manual and convert to an automated process over time.
A customer loyalty program can play a vital role in your continuing business success. It can help increase your retention, drive additional referrals, and enhance your relationships with clients and prospects. For additional guidance, check out the HubSpot articles, 13 Ways to Improve Customer Loyalty and Retention and Consumer Loyalty: The Ultimate Guide.
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Your Word & Brown team is ready to help you address more of your clients’ needs – and expand your sales and income. We offer a diverse portfolio of products and services for Small Groups and Large Groups. If you’re already doing business with us, call or email your Word & Brown representative to discuss the Word & Brown no-cost value-adds that you can share with your clients.
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