When it comes to Annual Election Period (AEP), we know a lot of focus is on new member acquisition and increasing your membership numbers, but you also need to think about your member retention strategy as well.
Why Member Retention Is Important
Everyone knows that it costs three to five times more to acquire a member than to retain an existing one. Once you realize the profit a member represents to your business when they stay loyal to you year after year, then you will know how much time and money you can afford to invest in retaining them. From The Loyalty Effect by Fred Reichheld, here’s a shocking stat that makes a lot of sense: “Across a range of industries, the average of a 5% improvement in customer retention will yield a 25 to 100% increase in profitability.”
So what can healthcare companies do to keep members loyal?
5 Member Retention Tips
- Don’t forget onboarding: Develop a formal onboarding process to communicate with members during the instrumental 90 days after they join. Starting with a good first impression can make all the difference. Ensure that the experience is seamless and easy because a good onboarding experience will set good expectations for the relationship that follows. And be sure to thank them and remind them again why they’ve made the right decision. Building a strong foundation in the beginning, could deter them from ever wanting to switch to a competitor.
- Use “triggered” messaging across channels – After onboarding, improve retention by building relationships through a series of offline and online programmed or “triggered” sequence of communications based on meaningful events or member behavior. By leveraging customer intelligence you will know when it’s the right time to engage. This will lead to higher member satisfaction because the messaging is tailored, timely and highly relevant to your members.
- Personalization is key: One size does not fit all, personalized communications is the key to creating a winning member experience. With members overloaded with messages every day, cut through the clutter and make your members feel special and valued with personalized communications.
- Use data analytics to prevent “churn” – Data analytics and customer retention predictive modeling are very effective ways to gain insights into factors influencing member behavior. Fortified with this information, you can allocate more of your resources to those members most likely to leave, or “churn,” before they do so. Minimizing member churn maximizes company profit.
- Build loyalty by becoming a trusted adviser – Deliver beyond what is required will make your members more loyal. Healthcare providers can proactively update members on program changes and governmental regulations, and additional education on the key topics that matter most.
Do you have a strategic healthcare retention strategy in place? For help optimizing your retention strategies, reach out to our healthcare marketing strategists today.