Acquiring new clients is one of the biggest challenges that insurance professionals face. With an ever-changing marketplace, insurance firms have to work harder in order to stay competitive.
But getting more clients isn’t the only way to increase revenue. Tapping into the clients who are already paying your products and services can give you better marketing results at a lower cost.
Cross-selling increases the lifetime value of clients by offering additional services that further meet their insurance needs. The following will help you understand what cross-selling is and how to use it for real results in your business.
What is Cross-Selling?
Cross-selling is the promotion of services or products that complement those already purchased by your clients. It creates new opportunities for delivering additional value.
This positions you as an invaluable resource and leverages the momentum created when a client moves through your sales process.
Cross-selling offers many benefits to your business including more revenue, improved client retention rates, and keeping you “top of mind” with your audience.
Clients are more likely to remember and consider you when new insurance problems come up. You become their first choice in getting the solutions they need.
But many insurance companies fail to recognize the benefits of cross-selling. Knowing how to put cross-selling into place is the first step in getting the best results from your efforts.
How to Cross-Sell
In order to benefit from cross-selling, you need to identify the opportunities that exist in your market. Look at your existing and prospective clients. Identify their needs and determine how you can satisfy those needs.
For existing clients, use your email marketing campaigns, social media, and other channels to present additional solutions they’ll be interested in learning more about.
For prospective clients, identify what products and services they’ll be most interested in based on your market research. Then use targeted advertising to present new offers.
A prospect may not be interested in one type of insurance, but you can make them aware of other insurance solutions that compel them to learn more about your business and its products.
During the purchase process, inquire about other issues that are relevant to your products and services. Selling a life insurance policy gives you a chance to identify the need for automobile or home insurance.
Any client information you gather should be documented and reviewed regularly. Policy expirations and other events can be perfect opportunities for cross-selling other products.
Putting Your Cross-Selling to Work
Knowing when to cross-sell is just as important as knowing what to sell. Changes in the client’s personal or professional life are strong indicators of new selling opportunities.
These include the purchase of a vehicle, establishing a business, or having a child reach the legal driving age.
Review your clients’ policies periodically and ask questions that can help you determine what other products might serve them at any given moment.
Although cross-selling benefits any business that knows how to use it effectively, its primary focus should be to serve the client.
Cross-selling makes it easy for clients to get the insurance solutions they need when they need them. It positions you as the ideal insurance provider while giving you a leading edge over your competitors.
Cross-selling is service that benefits your clients. Insurance companies that understand this key point and know how to cross-sell the right way will grow their businesses and achieve their long-term goals.