Skip to content

Cross Sell 365…Why, When and How?

October 28, 2016

SalesCross selling is an essential strategy to build brand loyalty, increase revenues and drive profits.

Cross selling involves products and services that compliment the original purchase.  It is the life blood of your business.

Cross selling increases the customer’s reliance on you and decreases the likelihood of switching to a competitor.  It is a critical performance indicator of an agency.  High performance “best practice” agencies know why, when and how to cross sell.

Cross Sell 365…Why, When and How?

A research study by Deloitte & Touche uncovered that the odds of selling a product or service to a new customer are generally about 15%, whereas the odds of a sale to an existing customer is 50%.  Plus, it costs 5 to 8 times more to sell to a new customer.

Addis Intellectual Capital has also performed research on this matter.  Through the administration of the following survey statement to over 5,000 agency principals, producers and account managers, one may see the following:

beyond insuranceAt a time when customer loyalty and trust is at an all time low, and the cost of new customer acquisition is at an all time high, agents and brokers must appreciate the importance and value of a disciplined, strategic and results-oriented cross selling system.

Cross Selling as a Barometer for Organic Growth

Cross selling success is an important barometer for organic growth and profitability because it represents the revenue associated with each customer.  As cross selling success improves, so does revenue, customer retention and the lifetime value of each customer. 

As you and your firm successfully execute a cross sell plan, you will gain enhanced knowledge about the customer.  The accumulation of wisdom about the customer is essential to a long term and mutually beneficial relationship.

In our next blog post we’ll reveal the step-by-step strategies for implementing an effective cross sell system for your agency!

______________________________

This article was pulled from the minds of Scott Addis and the Beyond Insurance marketing team.  We strive to help you live happier, work smarter, and make more money.  However, for us to do so, we need your help!  Let us know what your biggest frustrations are within the insurance industry by clicking here.  Who knows? Maybe you’ll be the inspiration behind our next article!
One Comment leave one →
  1. December 15, 2011 3:46 pm

    Scott..IU love this subject..this concept.

    Is there a way I can link to the entire article…in my Monday Morning?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: