How insurance agents can maximize customer relationships
Cross-selling and data analysis can expand the relationship with existing customers while turning up new clients.
Anyone who has ever worked in sales knows that customer acquisition is an expensive exercise. This is especially true in the insurance industry; in fact, the word “insurance” is currently the number one most expensive keyword available for purchase for a Google AdWords cost-per-click (CPC) campaign. At a $54.91 CPC, you’re probably not going to want to start from scratch with an insurance keyword campaign too frequently.
To help put that $54.91 figure in perspective, note that the average cost per click in Google Ads is between $1 and $2 on the search network. Why are insurance keywords the most expensive by far? Simply put, ours is a business with very high lifetime customer value. Google assumes that our industry will be willing to pay a lot to acquire a new customer because the long-term payout is so beneficial. But is your agency actually acting on all the potential that lies in the customer relationships you already have? What should you be doing today to ensure that you’re not leaving opportunities on the table?
Step one: Embrace cross-selling
No matter how you initially acquire your customers, it’s important to make the most of those relationships once they are established. One of the best ways to do this is through cross-selling. This can sound like a scary prospect, but it’s something that can be done quite naturally.
Some of the most effective insurance cross-selling can be done using the wealth of information that’s just sitting in your AMS. Do you have an auto insurance client that has indicated they own their home but isn’t getting their homeowners insurance from you? Someone who has identified themselves as self-employed but doesn’t purchase their business insurance through your agency? These customers have basically told you that you could be selling them more than you currently are. Don’t just sit on this information — act on it.
Step two: Use your data
There’s an important insight to be gleaned from your operations analytics that can make you a better salesperson and a stronger partner to your insureds. Embracing data analytics is one of the smartest ways to get to know your customers better and grow your insurance business. And as complicated as it sounds, it’s really not hard to do.
Want to make sure you’re not leaving opportunities on the table? Examine the types of policies and riders that your customers in the same vertical typically buy. You’re likely to spot some trends, and you can then use that information to identify cross-selling or upselling opportunities and make suggestions with the greatest chance of success.
You can also use data to approach new clients. Pulling up information about the number and types of claims paid out across their vertical or industry is an excellent way to illustrate the potential risks and relative value of their coverage options. Showing them what similar clients are buying is a great way to help them understand their own coverage needs.
Step three: Find the right tech partner for success
In today’s market, the fight to remain relevant and retain customers is not one you can take for granted. Competitors want your customers’ business, and increasingly, so do the carriers themselves. You want to ensure you’re doing everything possible to maintain and expand your customer relationships. That means cross-selling and making the most of your data. And that’s where a great technology partner can make all the difference.
There are plenty of tools out there that keep track of where your business stands today. You want one that will help you think critically about where it can be tomorrow. The right platform will integrate with your existing tools and resources to support your brand and help you to grow. Look for a technology partner that can provide actionable insight about your client base, highlighting those cross-selling and operations opportunities so you can get on with the business of acting on them.
As an industry, we don’t use our data and customers enough. That’s costing us — whether in the form of $54.91 CPC campaigns or simply lost opportunity. Thinking critically about how to maximize your existing customer relationships is as essential for large firms as it is for small independent agents. The data is there at your fingertips. The technology exists to leverage it to your advantage.
Liri Halperin-Segal is CEO of LeO, an AI conversational platform.
Opinions expressed here are the author’s own.
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