Would you like Fries with that? Do you want the large for only $0.50 more? Would you like your Tires Rotated as well for only $25 additional?
These are just a few of the “Cross-Sell” sales attempts you hear from day to day, but why? Very simply the answer is, “It is easier to sell a customer multiple products than to sell multiple customers single products.” A very easy concept to understand yet in our field I find it is a sometimes difficult concept to grasp.
In my years of Insurance Training, Coaching and Mentoring this is the most common objection I get to cross-sales. “If I offer additional products to my clients they will shop my Product with their current carrier and I will lose the business I already have.” Is that possible, YES of course but I need to debunk that overall myth right now. Are you going to take the bury my head in the sand philosophy or are you going to be proactive with your clients and offer your additional products with confidence?
Right now, right this moment stop whatever you are doing (no multi-tasking) YOU NEED TO HEAR THIS. If you are losing your monoline, stand-alone clients to other Agencies, Carriers etc. it is not because you offered additonal products to your clients and they shopped you with their current Company. IT IS BECAUSE THEY (YOUR COMPETITOR) did a better job at convincing your client to move their business, or they WERE NOT AFRAID TO GO AFTER THEIR CLIENT (also your Client, think about that) FOR ADDITIONAL BUSINESS (Business you used to have!) Statistically speaking in our Industry the largest lapsing client is the Single Policy/Single Line customer.
If you doubt what I am saying, think about this. Why do Carriers like GEICO who previously only offerred Auto Insurance now advertise, market and sell Renters Insurance, Home Insurance etc. Why do Investment firms that previously only marketed and sold Investments now offer Life, Health and other Insurance based products? Multi-million dollars are spent in Advertising in our Industry and I doubt any of you can name a Company that is advertising as a Single Product/Single Line company structure. Companies that thrive in today’s economy know that the value in Client Acquisition is the ability to offer many products to single clients versus single products to multiple clients.
THOUGHTS TO PONDER TODAY: Do you know how many Monoline/Single Policy households you have in your Agency? Do you have a systematic process to expose the need and value that you offer your Client by serving all their needs in one place? Have you chosen to be an Osterich with their head in the sand, “If I Bury My Head and Do Nothing The Client Will Stay? Were you an Agency that bought into the myth, “If I offer additonal products to my clients they will shop my Product with their current carrier.” If so, how do you break that myth for yourself and if you are a Team Member in that Agency how do you overcome that thought. Lastly, think about this; “I Coach My Agency Owners to go after your Clients and get the Business we can serve, we will be Proactive and Not Reactive, if you want to stay Reactive….WE WILL WIN LONG TERM!”
John Lucero, is a successful business owner with over 20 years of experience in multi-line insurance agency operations for several major National Brands. With an expertise in Recruiting, Educating, Coaching, Developing and Product Knowledge, his passion and drive to ELEVATE Insurance Agencies to higher levels of success is what keeps him inspired about the future and motivated about making a difference.
Comments 1
Great post, John! Cross selling is a great retention tool as well. I find that the happiest clients are the ones with 3 or more lines, especially when they have specialty and life.