A benefit-focused marketing approach generates rewards for everyone involved. Clients feel that they have an agent who listens to them and cares about them. At the same time, you are building long-term relationships that will generate increased revenues.
One of the most fundamental business maxims is a cardinal rule in the insurance business: Nobody does business with strangers. Studies show that it is about five times harder to sell a prospect than to sell a client. Therefore, strong relationships provide an excellent foundation for future sales transactions as clients’ needs change and their families and businesses grow.
In addition, cross-selling forges multiple links that reinforce client relationships. Research shows that client retention rates correlate directly to the number of products the client uses. In one study, the average retention rate was 14% for clients who use just one of a firm’s products or services; 56% for those who use two products; and 83% for those using three products from the same firm. Therefore, you can cement client relationships and enhance account profitability by developing focused cross-sell programs targeting vulnerable single-product households. Contact clients periodically to see if there have been any recent events that could impact their coverage needs. Let them know about any new program that relates to their needs or concerns.