Medicare Sales: 10 Components of a Great Retention Letter - Western Asset Protection

Medicare Sales: 10 Components of a Great Retention Letter

AEP is right around the corner. According to Harvard Business Review, different studies have shown that acquiring new clients can cost anywhere from five to 25 more times than retaining existing clients.

Retain your clients this AEP by sending a great 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.

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. Call must be initiated by the beneficiary. 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. Review the new 2020 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 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.

Need more help with your retention letter? Templates are available in the agent portal for WAP-contracted agents. You should have received an email with a link to those in the past few days. Contact us if you need assistance.