Insurance Soup Blog
Cross-selling is an excellent resources for agents who already have an established book of business. Clients who already know, like and trust you are great prospects for selling more than one product that you have available. So, when it comes to growing revenue for yourself or your agency, cross-selling to existing clients is a certified win-win..
Studies have found that nearly 80% of your future revenue will come from your existing customers. In addition, customer retention is often cheaper than prospecting new clients.
Cross-selling involves selling an additional or complementary product to a customer based on their individual needs. For example, if your client is starting a business and asks for a quote about General Liability you can also see if they’d be interested in Workers Compensation and Commercial Property since they will likely need all three to successfully launch a business.
So, before you increase your budget for lead generation or spend hours trying to network for new clients, you should first focus on the ones you already have. Here are four easy, actionable tips that will help you cross-sell more insurance policies.
1. SET UP YOUR GOALS
You should already have sales goals for your agency, and cross-selling should be a factor in those goals. When setting your cross-selling goals, make sure to:
The key to building up your cross-selling is to develop a system to help you identify opportunities. This could include:
3. BE ASSERTIVE BUT NOT PUSHY
No one likes a pushy sales agent, if you press too hard you might lose a client’s business. Make sure you always handle a client’s immediate needs first, then offer them information about other policies. If a client isn’t interested in additional policies, respect their wishes, you can always follow-up at a later time.
One way to push cross-selling, without being over-the-top, is to educate your clients on how they can bundle policies to save money. For example, if a client is only interested in General Liability, explain to them the benefits of a Business Owners Policy (BOP), which combines GL and Commercial Property.
Another cross-selling strategy can include offering your clients a free business assessment. For example, offer your client a free consultation to help them identify potential coverage gaps. This is a great way to educate your clients on the value of purchasing more policies.
4. WATCH HOW THINGS UNFOLD
Just as it’s important to set goals, you also need to analyze the results. Measure how well your agents are performing on their cross-selling opportunities and identify areas for improvement. On a monthly or quarterly basis analyze your data by looking at:
If done correctly, cross-selling could prove to be very lucrative for your agency and beneficial for your clients. If you keep these four tips in mind, you’ll be able to increase your revenue in no time.