AEP is right around the corner and retaining your existing clients is a top priority. However, client retention may be even more challenging this year.
Some Medicare Advantage plans may be cutting benefits or increasing costs as they try to boost their financial performance. At the same time, many seniors may be looking to save money. As an independent agent, you need to make sure they come to YOU for help – rather than responding to countless TV ads and telemarketers.
One way to get client retention efforts off to a good start is by sending a compelling client retention letter. Try to have this letter in your customer’s hands in September before carrier marketing materials hit on October 1. You can only send a retention letter to existing clients and this letter cannot be used as a prospecting letter.
Here are 10 things to keep in mind:
1. Use “you” and “your.”
These are powerful words. You want your clients to know that AEP is about them and their choices. Speak directly to them.
2. Keep language simple.
Avoid overly long sentences or difficult vocabulary. You want your letter to be something that people can read quickly and understand.
3. Use white space to your advantage.
You may have a lot you want to say, but if you try to cram in too much information, you run the risk of making your letter seem overwhelming. On the other hand, using white space is a good way to draw attention to important points.
4. State your purpose.
Don’t beat around the bush with the reason you’re writing. Make it clear that AEP is coming up and that it’s time to discuss insurance options again.
5. Thank them for trusting you to assist them last year.
This is a great way to show your appreciation while also reminding them of the help you’ve already delivered.
6. Give them questions to think about.
If they’re happy with their current plan – and hopefully they are – they might not realize why it’s important to reconsider their options this AEP. Give them some specific issues to consider. For example, you might ask them if there are any additional benefits they’re interested in, if they’ve been happy with their network of providers, or if they’ve found their current plan to be affordable.
7. Make the timeline clear.
You know how busy AEP gets. Remind clients of the AEP period (October 15 to December 7) and encourage them to contact you as soon as possible for guidance.
8. Make the next step clear with a Call to Action.
This cannot be high pressure. You want your clients to call you to schedule an appointment. State this clearly and directly at the end of your letter. And be sure to include your phone number!
9. State that you’re open to referrals.
Your clients may have friends who need help with their Medicare decisions. Let them know that you’re available to provide it, and that you’d appreciate the referral. Calls must be initiated by the beneficiary, so ask your clients to pass on your contact information to their friends. No cold-calling on MAPD or PDP!
10. Comply with marketing guidelines.
Medicare insurance agents need to comply with rules for marketing materials, and this applies to the retention letter. CMS has introduced new rules in recent years, so review the current marketing guidelines and have your letter checked for compliance. Here are some quick reminders:
- Don’t use a smaller font size. Stick to a 12-point font.
- Don’t add carrier names or logos.
- Don’t discuss any plan benefits, premiums or copays.
- Don’t add seminar dates or times before October 1.
- Run your letter by compliance@WesternAssetProtection.com to make sure it’s compliant.
- You must include TTY: 711 after your phone number.
- You must mention that the call will be answered by a licensed agent (or similar).
- You must include your hours of operation.
- Include this disclaimer: “We do not offer every plan available in your area. Currently we represent [insert number of organizations] organizations which offer [insert number of plans] products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.”
Need more help with your retention letter?
WAP agents have access to the Health Wealth Engine, which provides template letters for your use. It’s always a good idea for agents to run their letters and materials by a WAP compliance officer. A second set of eyes helps ensure that your marketing complies with CMS regulations.
Contact us if you need assistance.
Also, be sure to check out this article for additional client retention ideas.