Savvy brokers target cross-selling

Cross-selling is the best way for brokers to increase their revenue, according to Biba technical services manager Steve Foulsham.

He says clever cross-selling can also make sure renewals are an opportunity, not a nightmare.

In addition, if a broker sells several policies to the same client, the client is less likely to leave because they value the broker more. Other brokers will also find it more difficult to steal the client, he believes.

Use your existing clients well

In the hunt for new business, it can be easy to forget the people already spending money with you, says 1Answer Insurance managing director Paul Muir.

“Why are you spending money on advertising when you have a captive audience that are already willing to pay you money?” Muir asks.

Foulsham agrees: he says a brokers’ client database is often an “untapped source” for potential cross-sells.

Motivate your staff

Higos managing director Ian Gosden says he has started competitions for staff, with small prizes for employees who manage the most cross-sells.

“The key thing that we’ve started doing is making it clear to the staff that it’s actually part of their job,” he says.

Inform your client about your services

The client often won’t know exactly what they want, so pick a good time to remind them, Muir suggests. He advises brokers to tell clients about other services at the point of sale of a new policy.

Gosden agrees that renewal is a good time to target cross-sells, as the client had already proven their loyalty to the broker by renewing.

Don’t over-sell

Gosden says that Higos staff call clients at least three times a year, to build strong relationships. He says it is key to establish this, rather than only calling to sell something.

Know your client

Brokers can cross-sell more policies just by knowing their clients’ businesses well, Foulsham argues.

As an example, he says that a client looking to take out public liability insurance as a self-employed contractor is likely to own a van, and that a broker could easily target this.

Another example is if a client buys motor insurance for a 4x4 with a towbar. They could also own a trailer or a caravan that the broker could source insurance for.

Be patient

Finally, cross-selling takes a while to pay off, Muir says. He thinks it takes six to nine months for a broker to see any benefits. But putting in the groundwork now could make all the difference in next year's accounts.