Losing Clients, what to Do?

[bill3173]

but do you ever reach out to the client to at least see why in hopes of not making the same mistake with another client? I think if I did this, it would be an awkward conversation for both of us, and I'd come across as a little confrontational.

You're right about it being awkward...I had a lady quit me a couple of years ago, and it struck me as odd, because she sent me this post card in the mail telling me to take a hike.

I called anyway and asked her what happened, she got upset and told me that the reason she sent the card was to keep from having to talk about it. She was returning to original Medicare and not taking a supp or MA plan.

Had another one about 3 years prior who dropped a Med Supp and she responded favorably, when I called, but she was just "saving some money" with a new supp. She had emphysema and was a current smoker. The agent lied to her and placed her with a carrier that did app only uw. I just let it go, and didn't tell her the agent lied, blah blah shitt...if she was interested in my opinion she would have called me..It's still a semi-free Country.

 

[insuranceconceptscindy]

I set my clients up at the beginning to know that I have an open door policy. They call me for everything. The first year is tough, but after that, I only talk to them once a year at AEP, or if someone passed away. I let them know that I don't send any mail regularly, but when I do- it's important. They recognize that and respond favorably.

I send one newsletter a year- in September, reminding them of AEP. It's filled with all kinds of goofy stuff about my kids and giant dog. A few lines about AEP and let the phone calls start. They eat that stuff up with a spoon! Some of my clients actually keep every newsletter. For some reason they haven't figured out that it's recycled every year- I just change the dates and the ages of my kids!

What it comes down to is the connection you have with your clients. The ones you don't click with usually go away. Which is not always a bad thing. For whatever reason, my clients remember me, like me and refer me. It's what keeps dinner on the table, and I don't have to work really hard at being me.

 

[VolAgent]

You're right about it being awkward...I had a lady quit me a couple of years ago, and it struck me as odd, because she sent me this post card in the mail telling me to take a hike.

I called anyway and asked her what happened, she got upset and told me that the reason she sent the card was to keep from having to talk about it. She was returning to original Medicare and not taking a supp or MA plan.

Had another one about 3 years prior who dropped a Med Supp and she responded favorably, when I called, but she was just "saving some money" with a new supp. She had emphysema and was a current smoker. The agent lied to her and placed her with a carrier that did app only uw. I just let it go, and didn't tell her the agent lied, blah blah shitt...if she was interested in my opinion she would have called me..It's still a semi-free Country.

This is why I never believe, "I only lose people to death" statements.

Unless you are super strict on who you will write and even then stuff like this happens. People do weird, crazy and stupid stuff.

 

[Nikita]

I'm at the point in my career where I seem to notice with some frequency on my commission statements that a client has dropped off. It could be for any number of reasons. I've noticed a handful the last few months as the clients changing during AEP have finally been updated in the statements.

What do you guys usually do in situations like this? Do you always call the client to see what happened in hopes of winning back the business? If you do, is it ever successful? I'm sure if the client is a pain in the butt, you're fine with them walking, but do you ever reach out to the client to at least see why in hopes of not making the same mistake with another client? I think if I did this, it would be an awkward conversation for both of us, and I'd come across as a little confrontational.

Hey everyone...just an FYI..its in violation of CMS regulations to call a client after they've disenrolled from an MA plan. Its ok for med supp, but no ok for MA.

 

[insuranceconceptscindy]

This is why I never believe, "I only lose people to death" statements.

Unless you are super strict on who you will write and even then stuff like this happens. People do weird, crazy and stupid stuff.

Less than 2% of my lost business is due to crazy (usually in 2 categories: can't afford it, but embarrassed to say (I'll get them back into an MAPD at AEP) and straight up nutters.) Usually the truly crazy go away before the policy is issued. But seriously- mine die. Every once in awhile they will move, but I try to conserve that business.

If you do it right, death should be the only reason they leave you.

 

[VolAgent]

Less than 2% of my lost business is due to crazy (usually in 2 categories: can't afford it, but embarrassed to say (I'll get them back into an MAPD at AEP) and straight up nutters.) Usually the truly crazy go away before the policy is issued. But seriously- mine die. Every once in awhile they will move, but I try to conserve that business.

If you do it right, death should be the only reason they leave you.

Yes, but posters are saying it as an absolute. When there are always crazies that will leave. It should be the minority, but they are always there.

Even the simple, my third cousin removed got into the business.

 

[insuranceconceptscindy]

Even the simple, my third cousin removed got into the business.

Those are my FAVORITE!!!!!!! I love it when they leave for their third cousin, twice removed! Usually the third cousin will call me for help with the application because he can't spell insurance, and then the client calls back in a year, when the rate goes up and cousin doesn't seem to answer his phone/let his license lapse to sell solar panels.

I have, no $***, had that happen. More than once. I just laugh and wait for the phone call to fix it.

 

[sman]

This is why I never believe, "I only lose people to death" statements.

Unless you are super strict on who you will write and even then stuff like this happens. People do weird, crazy and stupid stuff.

When it comes to Med Supps, if the agent is proactive (stays in touch with the client, makes them aware of rate changes and other options), they should rarely lose a client for a reason other than death or affordability. As I sit here and try and remember the last Med Supp client I lost for a reason other than death, it's hard to think of one.

I may occasionally lose one to a MAPD, but guess who writes the MAPD? That's right, it's me. As long as they don't move out of the state.

Now with MAPD plans, it's possible to lose a client for reasons other than death. They may move to another state. And every once in a while, you might get one who doesn't talk with you during AEP and ends up switching to a different plan. And for me, that is the exception and not the norm as I feel I do a good job of staying in contact with my clients.

Edit: I just remembered the last Med Supp client I lost for a reason other than death. She moved to Miami and went with a MAPD down there. That was last year. Still can't think of one prior to that though.

 

[beachbum2012]

Thanks for all the responses guys. I probably don't do as good of a job as I should've keeping in touch with clients. Our agency mails out an Rx questionnaire right before AEP every year that offers to do a complimentary analysis for their PDP to see if it makes sense for them to move PDP's for the next calendar year. All they have to do is fill out their drug list (drug name, quantity, dosage, etc.) and we do it for them. Other than that, I haven't established a system yet where I send out birthday or Christmas cards, haven't created a newsletter, etc. I'd say with the majority of my clients this annual PDP questionnaire has been the only contact they've had from me or our agency.

I've been selling medsupps going on 3 years this July, so a lot of clients are getting to the point where I can save them $20/month or so. So I will be starting to contact a lot of these clients I haven't spoken with since we filled out their T65 apps. Also, in Michigan, all ins companies (except AARP) only pay renewal commissions for 3 years, so I'll need to contact these folks anyway or stop getting paid on them.

It's not like I've lost a ton of clients. Not counting the ones I wasn't sorry to see go, it's maybe a half a dozen or so. And most of these cancelled their plans around or within the first year, so it's not like being neglected caused them to leave. But I just want to try and learn from these situations, so I can try and prevent others from leaving in the future.

Anyway, lots of good ideas in this thread. Also like WCMason and sman said, it seems well worth the time and money to put forth this extra effort because of the referral business alone.

Are you guys putting a lot of time in trying to protect your book before/during AEP? The folks at my agency say time is better spent trying to get new clients during this point rather than servicing existing ones, but just wondered what other successful agents do.

 

[kstein]

That is the hardest part of the business, esp during AEP.

I've heard that only about 10% of people shop and switch annually so what maxes your revenue and time? Contacting all of your people to find the 10% and move some laterally or focusing on new business and hunting down the 10% of everyone else?