Why Client Retention Matters

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As an insurance provider, you’ll appreciate how much it costs to attract new customers. According to 2024 research by Chase McGee, the ratio of the Total Amount Spent on Marketing to the Number of New Customers Acquired may be summarized across the industry by the following graphic:

[Image source: Chase McGee]
Customer acquisition costs vary belize whatsapp number data depending on whether an organization uses comparatively low-cost organic advertising, or more complex inorganic marketing methods. Either way, the upshot remains the same: Customer acquisition costs are typically high (over $600 per customer, using inorganic marketing methods in healthcare).

A more economical and longer-term solution for insurers is therefore to retain the customers you already have. With strategic planning and proper implementation, you can as an insurance provider maximize customer retention at the various stages of the client’s insurance journey. Effective multi-channel communication and engagement with the client have a role to play in this.