Cross selling insurance is an effective way to increase revenue and deliver more value to customers. Here’s what you need to know.
Customer acquisition is the driving force of any business, but it is especially noteworthy in the insurance sector. That’s because insurers spend more on customer acquisition than any other industry, with carriers spending about $900 per customer according to Amsive. Thankfully, there are other strategies beyond funneling in new clients to help an insurance agency increase revenue. And luckily, one of the best strategies for insurers is a win-win situation for everyone: providing more value to their current customers.
Cross-selling insurance is an effective way for agents to offer additional relevant products to clients they’re already doing business with. However, in order to cross sell effectively, insurance providers should focus on implementing tools that help personalize customer experience and offerings.
Let’s take a look at how insurers can use customer data to create tailored products just when their clients need it the most.
Cross Selling in the Insurance Industry
Before diving into the “how” to cross sell insurance, it’s important to first take a look at the “why.” The potential for success, profits, and loyalty with cross-selling is paramount for insurers. In fact, Market Metrics conducted a study showing the profit from selling to a new client is about 5-20%, while the profitability for selling to an existing customer falls somewhere between 60-70%. With the high cost of customer acquisition in mind, it makes sense for an insurer to focus on customer retention and leverage cross selling to their current customer base.
The Benefits of Insurance Cross Selling
Regardless of industry, selling an additional product or service has a number of benefits, making cross selling an attractive strategy for most organizations. A few advantages include:
Lowering acquisition costs.
Increasing sales revenue.
Selling bundled or additional services at one time.
Increasing sales volume of each transaction.
Retaining current customers.
Building trust and loyalty with clients.
Improving customer satisfaction.
Opportunities for Insurers
Hubspot found that only 3% of salespeople or marketers are seen as trustworthy. While that may seem like a setback for those selling insurance, it actually opens the door to lead with a more customer-friendly approach.
So, what’s a more consumer-centric way to sell? Not selling at all, and instead serving. Rather than looking to push any and all products on policyholders, insurers can utilize customer data and policy information to create more personalized offerings to customers. It’s important to note that in order for providers to offer value to policyholders, they need access to tools and digital solutions that make it possible.
Leading with Personalization
The modern customer is likely overwhelmed by offers, marketing, and sales tactics throughout the day. Regardless of what device they’re on or what platforms they use most, there are high volumes of offerings in front of them everywhere. This makes it difficult to sift through what’s relevant and what’s not — and that’s where personalization, cross selling, and the right digital tools step in. The more information insurers have about their customers, the more effectively they can cross-sell relevant products to them.
Another approach to personalization and cross selling insurance is with the use of a customer portal. When a customer logs into their portal, it’s expected that you have their attention for the next few moments. A customer portal can first help address their immediate needs - whether that is updating their account or paying a bill. Once their initial task has been completed, it’s an opportune time for insurers to present personalized offerings based on the customers current policies, demographics, region, and life stage.
Gathering and Storing Customer Data
According to J.D. Power, 74% of customers go online to research their insurance options. However, only 25% of people end up completing their insurance purchases digitally. Because those shopping for insurance are more likely to speak directly with insurers when they’re ready to buy, agents have the unique opportunity to gather valuable customer data.
Insurance agents can spend this time asking questions that will be useful for cross selling, whether that’s immediate or a few months or years down the road. This might look like an agent asking their client if they own their home or are planning on purchasing one in the near future. The insurance provider may discover that the customer is in the process of closing on their first home in the next few months. With this new information, an agent can make note that the customer may be interested in home insurance policies soon.
Leveraging and Accessing the Consumer Information
Once the information has been gathered, insurance reps will need a consolidated place to view the data. This allows them to discover opportunities to sell additional products and better serve their customers. A few areas agents can focus on when pinpointing cross selling instances include:
Detailed policy information. Current policy info helps identify what products a client already has and any complementary products that could go along with them.
Gaps in insurance coverage. Agents can see what types of insurance the policyholder already has, and offer information about insurances that haven’t been covered yet.
Lapses in coverage. Clear and accurate dates of coverage make sure reps know when to reach out and offer updated policies before coverage ends.
Liferay Portals and Cross Selling
Despite the huge opportunity insurers have with cross-selling tactics, not all organizations have pinpointed just how to position themselves as an all-in-one provider for their customers. Lead Squared found that with 61% of policyholders having just one policy with their agent, 29% holding two policies, and just 10% holding three or more, there is room for insurers to grow more loyal client bases.
Liferay DXP provides agent portals to help insurers personalize content, simplify the customer journey, and make it easier for agents to bring more value to policyholders. Here are some capabilities that Liferay agent portals offer:
Smart recommendations based on past purchases, similar customers, and related products.
Ability for sales reps to optimize customer orders and offer discounts.
Increased visibility with an order history dashboard.
Centralized customer data and product information storage.
Liferay also provides customer portals that improve the customer journey. Here are a few benefits of a Liferay customer portal:
Serve smart recommendations based on existing policies, life changes, similar customers, and related products.
Engage the customer at the most opportune time — when they’re logged into their insurance customer portal.
Make it simple to find new offers and insurance products and start the buying process to minimize the cost of sale.
Request a demo today to learn more about what Liferay Digital Experience Platform has to offer your insurance agents, policy holders, and organizational staff.
