Sales Skills

Cross Sell 365…Why, When and How?

Cross 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.

Beyond Insurance 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:

Statement Agree Uncertain Disagree
My agency has a disciplined, strategic,
and results oriented cross selling system.
37% 8% 55%

At 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!