What is cross selling?Cross selling is the act of selling one insurance product to a client as well as a different type of insurance. This can be done simultaneously or sometime in the future.
Recently, we spoke with an agent who told us a story of how he used cross selling with a client. Let's say the agents name is Kyle. To set the scene, Kyle is meeting with a potential client (Conner, Age 52) who is interested in buying a 30 year term life insurance policy for himself. He knows this based on his initial phone consultation. Below is a rough transcript of the conversation of this meeting as recounted by the agent.
(We will skip the initial "Warm and Fuzzy" conversation to start the meeting)
Kyle: OK, you mentioned on the phone you are looking for a 30 year term life insurance policy at the cheapest rate you can get. Am I correct?
Conner: Yea, my wife and I just bought a new house, which we are moving into next week, and I was told by my bank that it might be a good idea to get life insurance. The 30 years is to cover the length of the mortgage. The bank wanted me to buy life insurance thru their contact, but once I spoke with you I thought you might be able to get me a better rate.
Kyle: I appreciate you giving me a chance to show you what I can do. I won't promise the rate will be cheaper than your bank's, but it should be competitive.
Conner: OK well I need this policy as soon as possible so if we can just get into the details that would be great.
(Conner and Kyle discuss his options and go over all the details of each proposed plan. Conner chooses a plan and they fill out the application. After they complete the application Kyle begins his cross selling technique.)
Kyle: You had mentioned you worked with your bank for your mortgage. Do you own any Cd's or money market accounts at that bank?
Conner: Not that bank, but yes, my wife and I both have Cd's at a different bank that we keep for retirement savings.
Kyle: The reason I ask is because I wanted to let you know of additional insurance products that I offer. Along with life insurance, we help people with investing their retirement funds. Depending on what you want these retirement dollars to do, I might be able to help you.
Conner: We intended on using these Cd's to supplement my income once I retire. I am a conservative investor and do not really want to get involved with stocks.
Kyle: Understood, would you be opposed to hearing some ideas that I have regarding those Cd's you own? I will send you a letter highlighting some of the products that might interest you and we can set up a time for me to come back and meet with you and your wife. How does that sound.
Conner: Well, that would be OK, but I do not want to do that right now.
Kyle: How about this. We will tentatively set a time next week and I will call you on Monday to finalize a time.
Conner: That's fine, we are busy people so we will see what next week brings. Go ahead and send me that information you talked about.
Kyle: Definitely. I will tentatively put down next Wednesday at 5:00 here at your house. Look for the packet in the mail. Thanks so much for working with me on the life insurance.
A week later Kyle called to confirm his appointment with Conner. By that time Conner had received the informational packet about retirement investment products offered by Kyle's company and wanted to keep his appointment time to go over some questions he had.
It turns out, after meeting with Kyle, Conner decided to invest a portion of his investments into an annuity to help supplement his family's income after retirement. Kyle was looking after his client's needs and used cross selling to make two sales for himself.
As you read, Conner was not initially game for a second appointment, but Kyle did not let this fluster him. Kyle also was direct in his approach to cross sell a life insurance policy. He asked about other potential business immediately after he sold the life insurance policy. This might not be the case every time, but agents should look for these opportunities and capitalize on them whenever they can.
"Image courtesy of [AscensionDigital] / FreeDigitalPhotos.net".