Insurance advisors know that investing in their business is an essential part of making it successful. When you’re putting in effort and investing in resources, you want to see good returns.
Advisors need to invest in solutions for their practice that provide significant value, and they want their business to improve as a result. For a business to be successful, it first needs to be profitable. In other words, there needs to be an increased return on investment or ROI.
As the insurance industry continues to undergo a digital transformation, the once-reliable business methods of the past do not deliver the value they used to. Customer expectations across all markets continue to increase due to the luxury of technology. Insurtech solutions are an investment, but they are great tools for increasing insurance ROI if chosen correctly.
Your Current Clients Are Your Sales Leads
By definition, more sales and revenue lead to a higher return on investment. So, how do you make more sales? Many advisors would say they need to step up their marketing game to find more clients. Those advisors would be wrong.
Time and time again, it’s been proven that current clients are the most fruitful leads. Some of the statistics that support this include:
- On average, insurance agencies spend seven to nine times more to attract a new customer than to keep one.
- When customer retention increases by just 5%, profits increase by 25% to 95%.
- Millennials with increased connectivity to their insurance providers were more loyal, bought more products, and gave higher ratings.
- Clients who regularly communicate with their insurance advisors are 74% more likely to recommend their advisor to others.
Advisors who prioritize their relationships with their current clients are more likely to be trusted resources rather than just business associates. When clients trust their advisors enough to open up about their insurance and financial information, advisors can offer advice or recommend solutions. Advisors should always be looking for gaps in policies, not only to benefit the client, but also to make the sales process more natural.
Advantages of Cross-Selling
Cross-selling is just what it sounds like. Oxford Dictionary defines it as “selling different products or services to an existing customer.” Cross-selling is all around us, such as the “recommended items” section on Amazon or the “similar searches” section on Google.
As many of us know, putting those perfect complimentary items in our shopping cart can be the most exciting part of the day. That’s one of the many advantages of cross-selling. Advisors who can offer great solutions for a client’s current policy make them feel more understood. If they feel like the advisor is taking the time to understand and address their needs, they will form a deeper relationship with their advisor.
That leads you right to another advantage of cross-selling. Clients who feel a stronger relationship with their advisors are much more likely to be loyal. Not to mention clients who feel connected to their advisors are much more likely to recommend their advisors to others.
In today’s tech-driven world, consumers demand convenience. A defining feature of insurance customers today is their emphasis on quality and ease of use. Advisors capable of cross-selling to their clients are serving as a one-stop shop for all of their insurance needs.
Lastly, cross-selling helps push customers through the buying journey. Customers who are hesitant to purchase may need added value to move them in the right direction. Offering complementary solutions through cross-selling can motivate clients to make quicker decisions.
The Whole Package
The best way to get multiple product sales is to understand the clients’ needs from a holistic standpoint. However, most insurers adopt business solutions that focus on one issue, such as customer acquisition, rather than the entire picture. The insurance industry requires a solution that provides next-level insights at all stages of the customer journey.
One insurtech solution that provides connectivity to clients throughout their insurance journey is Link by LegacyShield. Link provides advisors with the tools they need to retain and engage their clients successfully. With collaboration features, advisors get in front of the entire family, which allows for multiple product sales and multigenerational business.
To learn more about Link, check out this blog post: Let’s Link – Collaborate with Clients in a Secure Virtual Workspace.