The Art of Cross-Selling – Combining Sales Tactics & Insurance

Cross selling is the act of selling an additional product or service along with the base product or service a client was originally looking for. Not only is it an extra sale for you as an insurance agent, but is also a great way to help your clients use excess funds for something that will actually benefit them, such as legacy planning.

Many Americans save money in their bank accounts with no intentions of using it. The idea is to save money for their future generations in the form of their legacy.

For such clients, you need to convince them not just about buying legacy insurance to protect their family, but also about life insurance[KH1] , trusts, annuities, and more. For that, you need to combine sales tactics and the insurance plans you offer.

But why cross sell in the first place?

The Cross-Sell Model in Insurance – Does It Really Work?

Cross selling isn’t something new – when selling life insurance, the prospect of legacy planning rises automatically, just as home insurance comes up when selling auto insurance. However, as an agent you might end up stopping after selling one or two policies together – which is like leaving money on the table for someone else to grab!

Cross-sell models in insurance only work if you are providing additional value to your clients – not just looking for increased revenue. You need to target your existing customers and you must know how to approach a topic. This is where your sales-expertise comes into play.

This practice is usually five times more cost-effective than looking for new customers – not to mention it builds relationships and positively impacts your customer retention and referrals. Just make sure that what you’re offering is relevant and valuable and don’t be pushy.

Cross-Selling Best Practices for Insurance – Blending Insurance With Sales Tactics

Whether you’re helping a client with business succession planning or advising based on their investment portfolio, the insurance cross-sell model is pretty straightforward. Yet, that is not to say there can’t be hitches along the way. Some of the common problems people face include:

  1. Limited cross-selling opportunities
  2. Difficulty contacting customers on time
  3. Resource constriction

Here are some ways you can tackle these problems.

Identifying Cross-Selling Opportunities

Use a customer-journey analysis. See how far they’ve come with you and whether your insurance company is offering a product that you think they would be interested in. You can probe your clients from time to time to see if they’ve changed their minds about buying a new policy. Just don’t seem too eager.

Don’t Wait!

If you have reason to believe that a customer needs or simply can buy a new policy, don’t wait for them to get in touch. Pick up the phone early on, because your competition won’t wait for you to call first! Furthermore, as you start presenting your clients with options, the first few minutes are crucial.

That is when clients are open to new ideas and will listen to what you have to say – and the products you have to offer.

Get a System That Can Handle Complex Policies

This is often a problem with startups alone; they are used to selling only one or two policies at a time. Should an agent successfully cross-sell, agencies don’t have systems in place to handle such orders. Make sure you are ready for the day when an insurance agent sells more than one policy at a time.

If you’re a startup, a separate registry will do the trick as well at the beginning. 

At the end of the day, one of the most resource-intensive tasks for cross selling is research.

If you’re having trouble allocating resources efficiently, give us a call and we’ll be glad to help you out, or stick around to read more!


 [KH1]Link to “Legacy Planning & Life Insurance – How Well Do They Sit Together?”