How to maximise retention and revenue for your Employment Benefits company

It’s all about growth

If there’s one thing that all businesses have in common, it’s the desire for growth.

Boiled down to its simplest form, growth can be achieved through either finding new sources of income (new customers, new markets etc) or through retaining and delighting existing customers.

This pursuit is of course no different for employee benefit companies. However, there are some interesting differences between these companies and those in other industries. One such difference is that the offering is split in two- what the client receives (the platform), and what the
employee sees (the staff benefits scheme). Frequently with employee benefit companies, the platform is the differentiator, but the perks are largely the same – so how does any company stand out from the crowd to achieve increased revenue and retention?

Retention

In order for your client to continue using your service, they need to see results in terms of employee engagement amongst other things. However, in order for these benefits to come to fruition, employees need to engage with the staff benefits scheme in the first place, and do so continuously. The advantages of running such a scheme have been well documented, however some studies have shown that up-take of the scheme can be very low. Although it varies from industry to industry, up-take rates generally range from 0.5%-33%, and although having a third of your staff more engaged is of value, it can still be seen as quite a low figure.

In its simplest form, low engagement means low retention rates. Who is going to pay for a platform that their staff aren’t using?

In order to increase the use of the perks, communication is key. For example, it has been reported that in one study, 20% of staff claimed that they received information about their scheme when they first joined, but have never heard about it since. With communication of perks this poor, it is no wonder that up-take levels can be so low! In order to remedy this, agencies should find a way in which it is as easy as possible for clients to effectively communicate the incentives that staff can claim. One way of doing this is to source a supplier of staff perks that also offers free marketing collateral such as posters that can be passed on to your clients who can then spread the word about their entitlements.

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Revenue

Attracting new clients for your employment benefits company is not only about the advantages of the software you are selling to distribute and report on the staff benefits scheme, but also about the value of the perks and incentives you are offering their staff.

Consider what it is that the client is trying to achieve – they are trying to increase engagement of staff, and so it is vital to them that the types of benefits offered are those which are desirable to them. In order to make sure that your clients’ employees are going to use the services that you offer, you need to ensure that the offerings are aligned with their actual desires. This can be tricky and is a constant job as it means consistently staying up to date with trends and changes in the industry but doing it well will mean that you stay relevant and competitive.
For example, studies have shown that benefits that can be used as a couple such as dining and discounted cinema tickets are extremely popular now. As a business that provides employee benefit companies with bulk discounted cinema tickets, we have learnt that the most engaging
perks are those that have an emotional-tie.

Cinema and restaurant deals can also be shared with loved ones, unlike the traditional shopping vouchers that people are used to receiving. This kind of information is invaluable when working to achieve new business with prospective clients. Lastly, we return to one of the first points in this article – many of your competitors are offering the same things, and rely entirely upon their software to differentiate them. In order to stand out and achieve the growth that you desire, use the value of the perks themselves as a discussion point – take what your competitors do as a starting point and improve upon it. If they offer something, offer your clients a better version.

We mentioned discounted cinema tickets, which is a common offering amongst employee benefits agencies. Why not offer your clients the best possible option with the latest cinema technologies, exclusive discounts and widest selection of cinemas available from one place?

Don’t stop growing

In order to help employee agencies, grow their businesses, we’ve put together a completely free guide which covers more ground on how to keep growing! Download your free copy of “How to take your Employee Benefits company to the Future and Beyond” now.

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