In today’s insurance market, you must take advantage of every strategy and tool at your disposal to be competitive, gain market share, and be the go-to insurance resource of choice for your customers. Competition is fierce. If you aren’t taking advantage of cross-selling opportunities, you’re leaving money on the table and likely losing a lot of your customers’ business to your competitors.
Cross selling insurance is the lowest cost, highest return marketing activity you can engage in. Research shows that it costs six times more to sell to a new customer than to an existing one. You’ve already established a relationship with your current customers. They already know you and have bought from you, so your foot is already in the door. It only makes sense to ask them about their other insurance needs. It beats cold calling, and it beats the time and expense of marketing to new customers.
With the right insurance agency management software, you can cross-sell and up-sell with ease by segmenting your data and uncovering previously overlooked opportunities. Below are a few insurance sales tips and ideas:
- Look for “related” opportunities: For example, use your insurance agency software to run a list of your clients who have policies for boats, RVs or ATVs. Policyholders who own one toy, often own two. They sometimes also have vacation homes. And, because they engage in riskier hobbies, they may benefit from an umbrella liability policy. Use the information you have to determine secondary opportunities.
- Identify “up-sell” potential: Your customers with luxury vehicles and/or high value homes may appreciate knowing that you offer scheduled coverage for special collections, antiques, artwork and more. If you offer a special high value homeowner option, let them know. They may welcome the chance to upgrade.
- Explore “cross-sell” possibilities: Offer business clients personal lines insurance. If a homeowners client owns a business, offer business insurance including a business overhead expense policy. You can offer everyone supplemental life and disability insurance. Emphasize potential savings from bundling.
Maximizing and the data already contained in your insurance agency software is key. Without insurance technology, cross-selling can cumbersome. With insurance technology, it’s a breeze.
Train everyone in your agency on how to cross sell, from your receptionist to your best sales agent, to take advantage of incremental selling opportunities. Every piece of outgoing mail, every incoming and outgoing phone call, and every marketing piece represents an opportunity. Take a closer look at how you’re using your insurance agency software, and how it can help you accomplish your incremental selling goals. Consider adding a cross-sell P.S. to all of your insurance agency software letters.
While you’re selling, beware of the hard sell. Customers today are better informed than ever, and they’re more resistant to being “sold” than ever before. Your customers will better respond if you act as a trusted advisor who pays attention to their needs and offers appropriate solutions. In other words, view your cross selling efforts as a function of good customer service.
Insurance customers today don’t just want products and services. They want solutions. They want convenience. And they want relationships with trusted advisors. By diversifying the lines of insurance you offer, you have an opportunity to deepen your relationship with every customer and provide a one-stop solution for all of their insurance needs. And the more knowledge, education and products you can offer them, the more they’ll regard you as indispensable and will be less likely to take their business elsewhere. And that means building a financially sound business.