Cross-selling, often referred to as “account rounding“, is one of the most powerful marketing tools for growing your business. It strengthens relationships with existing customers, creates more loyalty, and often leads to more business from referrals
Despite its many benefits, too many agents agents are hesitant to cross-sell or upsell additional policies. If you’re afraid of bugging your customers by reaching out to them, don’t be. According to Deloitte, 60% of insurance consumers feel like their insurance agents don’t offer any value after the initial policy purchase.
If you’re like most agencies, you need to spend more time reminding customers of the value you offer. A good cross-selling not only increases your revenue, it’s a way to remind customers you’re there to protect them and their assets. Reminding customers of your value won’t bug them—it will deepen the relationship and build loyalty. And loyalty means longer relationships, more revenue, and more referrals — all because you asked!
Cross-Selling Strategies in Insurance
Cross-selling requires strategy. Don’t email everyone in your system who doesn’t have a particular policy. Segment your book of business and narrow down a target audience. Above all, personalize your communications with content that adds value to their lives.
- Don’t push cross-sales too hard during an initial sale. It’s okay to plant seeds, but your prospects are not interested in buying a second product or service until you’ve proven yourself.
- Even with established customers, you have to “read” each interaction to know what to sell and the best time to sell it. Cross-selling and upselling will find their way into these relationships as long as you respect your customers’ needs and put those needs first.
- Most agents know the value of cross-selling and the potential benefits, but they rarely create a plan of action. Most aren’t willing to change procedures and systems to optimize their current book of business. The only way to create ongoing success is to establish formal systems for processes like segmenting customer lists.
One of the most cited examples of customer segmentation is segmenting customers who have auto insurance but no homeowner’s or renter’s insurance. But most customers’ minds are set on the product or service at hand and they are not thinking of additional purchases. In many situations, it may be better to cross-sell a renter’s policy than a life insurance policy, for example.
- Create a sequence of emails to connect with a specific group using content that educates and informs. The content should be specific to their needs based on the segment selected, and every email should include a strong call to action to entice customers to move forward. Specific policies shouldn’t be mentioned until the final email to emphasize that you are a valuable resource for advice and information, as well as products and services.
A Real World Example of Cross-Selling Insurance
Look at a great commercial lines cross-selling sequence used by Agency Revolution client Peake & McInnis Insurance Brokers. They promote their Cyber Liabilities policies to their small and mid-size commercial lines clients that don’t have one. It’s an efficient and effective email sequence with two weeks between each email.
- The first email is all about “how to avoid data breaches.” The content discusses frequency, challenges, and specifically how data breaches affect small and mid-size businesses. The email also shares a “Cyber Liability Checklist” and includes a call to action at the end of the checklist and in the email body.
- The next email explains how to identify common online scams. It also shares a link to a companion blog post outlining what a cyber liability policy covers. The email includes two calls to action and offers multiple contact channels.
- The last email is more direct. It emphasizes that the agent’s greatest concern is protecting the customer against cyber liability and how the agency is uniquely qualified in this sector. Along with an overview of cyber liability risks, the email references the cyber liability checklist and the policy coverage — and a call to action.
This campaign positions this company as an expert on an increasingly important issue. It reminds customers who don’t have a policy for specific coverage that the company still provides valuable resources for protecting their clients.
Even if someone doesn’t buy a policy because of this campaign, they will remember how knowledgeable and friendly the brokers are. When they need to protect themselves with a policy, Peake & McInnis will be at the top of their minds.
So how does Peake & McInnis stay on top of their email campaigns? How do they consistently send the right message to the right customer at the right time? They use marketing automation. Agency Revolution’s Fuse™ marketing solution lets you automatically create and send email campaigns for every part of your customer’s journey.
How to Sell More Insurance by Demonstrating Your Value
One of the most powerful tools in an agent’s or broker’s toolkit is their expertise in protecting customers and their assets. Consistently remind your customers you’re a valuable resource for making their lives better. Let them know you’re accessible and your primary concern is protecting them. If they don’t hear from you regularly, how are they going to remember how important you and your services can be?
Communicate with customers regularly using emails personalized to their needs. Segmenting your customer list and importing it into your customer management system can be challenging, but it’s worth your time. We built Fuse™ to make the task easier. The platform integrates seamlessly with your management system and lets you segment lists based on policies, history, and other criteria.
Demonstrating your value means more than showcasing your expertise or range of products and services. Your prospects and customers are diverse, so their values will cover a broad spectrum. There are some universal consumer values like exceptional service, expert guidance, and selection. Hopefully, your agency is already offering these in addition to meeting customers’ insurance needs. If so, you have plenty of ways to add even more value for your customers.
The Harvard Business Review recently published an article with 30 things customers value. Categorized into specific categories such as “social impact,” “life changing,” and “functional,” the values include anxiety reduction, risk reduction, reduced effort, affiliation, and more. Can you see how your agency or brokerage could provide more value with these examples?
We can, and that’s why we’re ready to help you show your agency’s value from day one of your customer’s experience. You can customize welcome kits to start relationships on the right foot, surveys to help manage your reputation, and campaigns that drive referrals. Join the Revolution and showcase your value for easier cross-selling, upselling, and retention.