During a recent conversation with an agent, he inquired about boosting his revenue beyond just selling more Medicare supplement policies. Without hesitation, he posed another question: "How can I enhance customer retention?"
The good news is that the solution to both queries lies in the same strategy - Cross Marketing. Not only does cross marketing drive revenue by increasing product sales and commissions, but it also fosters customer loyalty. Research indicates that clients with three or more products from the same agent are significantly more loyal.
By engaging in cross marketing, not only will you see a rise in revenue but also in customer retention. Clients who have multiple products with you are less likely to switch to another agent, as they trust your expertise and value the relationship built over time.
In essence, cross marketing leads to increased revenue, retention, and overall business growth. Let's delve into the what, when, and how of cross marketing to maximize its potential.
What we cross market is often dictated by what our lead product is. For example, if we're leading with Medicare supplement or Medigap policies, generally, Dental Vision Hearing, Prescription Drug Plans, and maybe a life product like final expense, or even annuities are usually our biggest cross-market opportunities.
If it's not a Med Supp, maybe it's a Medicare Advantage plan, then it's more likely to be Hospital Indemnity, Home Healthcare, and Critical Illness type products.
So, that's what we're going to cross market, but when are we going to sell it?
Determining when to engage in cross marketing often hinges on the stage of the client's customer journey. Personally, I find that the opportune moment is while you have them on the phone.
If that's not feasible, post-sale cross-marketing is also a viable option. In this case, we can leverage technology to sift through our customer database and pinpoint the most promising cross marketing prospects. This enables us to craft targeted campaigns for maximum impact.
Approaching cross marketing requires impeccable timing. When focusing on cross marketing at the point of sale, it's crucial to craft effective scripts and offer thorough training to our agents. This equips them to present a well-rounded package of products that address both risks and benefits, tailored to meet each client's specific needs.
On the flip side, for post-sale cross marketing, technology plays a vital role. Utilizing automated campaigns through email, text, or direct mail can unearth valuable cross marketing opportunities within our existing customer base. Adding a personal touch, like reaching out to clients via phone calls, can also open up discussions about additional products that enhance their coverage and mitigate any remaining risks.
Ultimately, the aim of cross marketing is not only to boost revenue but also to enhance customer retention. Starting with a single product can serve as a manageable entry point for newer agents looking to dive into cross marketing. By gradually expanding the product portfolio and engaging in meaningful client conversations, you'll not only drive sales but also nurture relationships and deliver tailored coverage that meets their unique requirements.
Embracing the mutually beneficial nature of cross marketing can pave the way for substantial business growth.
Let me share a fantastic success story with you. A close agent colleague of mine recently decided to expand his product offerings. While he was primarily focused on selling Medicare supplements and hadn't delved into cross-selling, he took my advice and introduced dental and vision coverage into his sales conversations.
The outcome? In just one year, his commissions soared by an impressive 37%.
It's not about reinventing the wheel; sometimes, all it takes is introducing a valuable product and discussing its benefits. A simple addition to your portfolio can resonate with a portion of your clients and lead to increased sales.
If you're navigating the world of cross-marketing and could use some guidance, don't hesitate to reach out to us at PSM. Our seasoned marketing team is here to assist you in identifying the right products for cross-marketing, creating compelling packages, and executing effective post-sale strategies.
We're eager to hear from you, learn more about your business, and address any challenges you may be encountering. Together, we can craft solutions that drive your success. We appreciate you taking your time to check this out, and we wish you the best of luck.