When it comes to cross-selling, many understand the benefits, but are reluctant to implement the tactic at their own brokerage. Cross-selling has been known to produce more revenue per customer as well as decrease competition, which all sounds good; the challenge lies with executing it.
There are many reasons why brokerages should be cross-selling, but ultimately, you can find revenue by looking no further than your current book of business. According to John Kuehn, senior vice president at Zywave, “There is unrealised revenue that many just leave on the table. And leaving money on the table will always hurt you in the long run, regardless if it’s from someone who is already your client.”
Many brokers are reluctant to cross-sell because they have apprehension about bringing another broker into the client relationship in fear that it might not go well. But John has found that most clients appreciate learning about other products and services that could help them better meet their ever-changing needs. “There is also a certain comfort level that comes from working with someone you already trust,” said John. Everyone is looking for ways to cut costs and save money, and what better way to explore that option than with your trusted broker.
Cross-selling is a great opportunity to continue to be your client’s trusted broker in 2014 by helping them realise a savings or even additional benefits. Why not take advantage of a relationship that you’ve already built by expanding on it?
Questions to think about when considering cross-selling at your brokerage:
- Which of your clients would be a good cross-selling prospect?
- Do you have clients that may not know about all the services and products you offer?
- Who will you collaborate with at your brokerage?
- What will your approach be to the client?
- How will commissions and future renewals be split?