As a seasoned financial advisor, you know how to unearth a potential customer, hone in on his or her needs, find a product that addresses those needs and close. The problem becomes maintaining this customer relationship.
Customer acquisition can be costly – five to 10 times the cost of retaining an existing one, according to The Financial Brand. For this reason – not to mention a previously established trust and comfort level — it makes sense to identify opportunities within your existing book of business. Let’s say you have a client who bought a 20-year term policy from you. You diligently check in with him each year, but he doesn’t need any more life insurance. Rather than moving on to the next customer, you could consider expanding your offerings beyond just mortality and morbidity products. If you decided to offer VirtualMD, for example, you’d suddenly have another potential sales opportunity with that term client.
You probably haven’t given diversification much thought because the industry hasn’t provided you with the opportunity to incorporate other products into your portfolio. But that’s changing all throughout the financial services industry.
Banks, often thought of as one of the most staid institutions within financial services, have recognized the value of cross-selling and upselling. They used to be a place to put your money and that’s it. Now they’ve evolved to offer items such as payroll services and human resources solutions as well as privacy protection.
TD Bank, for one, employs the cross-selling strategy with Paycor. TD offers its customers discounted pricing when they have Paycor process payroll from their business account. By partnering with Paycor, they’re able to offer their customers an additional service, get a cut of that business and incentivize customers to remain with the bank.
Many banks upsell with life insurance when setting up a mortgage or assisting with a refinance. The customer has the amount they owe in front of them, which makes it a perfect time to discuss protecting their future. The idea is to solve as many problems as possible for the customers they already have, effectively increasing their customer share of wallet. And consumers gravitate to the convenience of a one-stop-shop experience.
I’m suggesting you follow their lead. Using our menu of services at LegacyShield, adding on a product like VirtualMD is now possible. While that term client undergoes underwriting, you have a click-and-buy item to sell them in the meantime. The product is easy to explain because the need is clear, it’s a simplified sale because no underwriting is required and your revenue is automatically generated. It fills a different customer need but it’s also still related to the initial product because both are under the sales umbrella of legacy protection.
I strongly believe that the industry needs to provide agents with more tools like this to thrive, which is why we’ve made sure our LegacyShield platform does exactly that. Branching out in this way is especially important to remain relevant when you’re competing with disruptors. They already have a customer base for these new and innovative products and services, and they will begin to offer (some already are) their own insurance products.
In an industry where sales are more difficult to come by and commissions have been compressed, broadening your arsenal is the key to prosperity. When you do so, it opens up new opportunities with existing clients.