Any effective broker or agent must be skilled at insurance cross-selling. However, the line between cross-selling and up-selling is exceedingly thin. How you would deliver an insurance quote to a close friend or relative is one of the simplest ways to understand the distinction between the two. Would you provide them with the best options available?
Or would you give the most favorable alternatives for your sales figures? Would you persuade them to boost limits, for example, if they asked for a state-required minimum motor liability policy — for their protection or your business line? Everybody has different insurance needs. Learning how, when, and why to cross-sell to both potential and current customers is just as crucial as finding new clients.
Products With The Most Potential For Cross-Selling
Underwriters, brokers, and agents categorically state that certain insurance lines have high costs and minimal earnings. The state-minimum vehicle coverage example mentioned above is just one scenario. Many administrative tasks are usually involved with these plans, and the insureds frequently fail to renew them.
They typically shop around in pursuit of the lowest price. Generally, these clients don't have enough assets to warrant greater liability limits or the need for other lines of insurance. Cross-selling is thus irrelevant.
A different instance is Business Owners Policy (BOP). The nature of this clientele is vastly different. They demand better insurance coverage. They require business liability insurance to protect themselves from complaints and legal action.
Plus, they need to protect their business property. This can include the building, equipment, and inventory. BOPs on their own tend to have low revenue potential. However, this completely ignores the substantial opportunity to cross-sell. If these insureds own a business, they likely own other assets.
Additionally, they must safeguard their company assets. This can include the structure, equipment, and inventory. The financial potential of BOPs alone is typically low. This, however, utterly overlooks the significant possibilities for cross-selling. If the insureds run a business, they presumably have other assets.
Steps For Successful Insurance Cross-selling
Successful insurance cross-selling begins with asking questions and listening to responses. Cross-selling starts when you fully grasp your customers' demands for BOP insurance and then provide the most competitive quotes in response to those needs. And it's crucial to get the appropriate data and make it simple to understand.
Brokers and agents should use instant quotes (APIs) to retrieve several quotes from associated carriers simultaneously. Then, compile these quotations and conveniently categorize them in a Competitive Differentiation Table™ to determine which is the client's best fit. Before presenting quotes to clients, many brokers and agents delete non-competitive or inadequately-covered policies.
Never pull data without first having the client see it. The Smart Client Proposal™ offers simple, straightforward quotes without requiring manual modifications. The next stage involves knowing your client's insurance needs, which is connected to the initial step. The Multi-Tower Risk Placement™ visualizes all the coverage risks in one location. It's the ideal tool for a multi-line quote.
Improve Customer Experiences Through Quote Optimization
Giving up when a client simply wants one line of coverage rather than the bundle is one of the biggest errors brokers and agents make. Clients frequently prefer to make insurance adjustments on their schedule, not yours. By presenting options, you may inform the client and let them know whom to contact if they want to make adjustments.
Before switching all of their BOP insurance requirements to you, they might wish to use the BOP as a trial run to assess your brokerage's level of service. You don't want to wait for that.
Life events, small business requirements, and insurance policy modifications occur. The multi-line quote is an excellent excuse to contact your new client again and follow up. Optimizing quotes enhances both the client relationship with your clients and insurance cross-selling. To begin optimizing competitive quotes, get in touch with us.