How To Sell A Second Policy: 4 Tips
Selling a second policy to your current customers is one of the most important things that you can do as an agent because it increases the rate of retention, and according to Arthur Middleton Hughes of the Database Marketing Institute, it leads to “much more than the additional profit from that policy.” It also opens the door to a third, fourth, and fifth policy (and so on) as well as brand loyalty.
Nothing is quite as effective for building a business as positive word of mouth, and those are the doors that your second-policy-sell to the same customer can create. Fortunately, there are some simple ways to pull this off. We’ve thought of four, but be thinking over the specifics of your client list and see if you can think of more. Let’s get started.
One: Ask At The Initial Point Of Purchase.
When an insurance lead signs up, the very first thing you should do as an agent is show them the savings adding a second policy will create. If you’re selling auto insurance to the customer, ask about their living situation. Are they in a home or an apartment? What will happen to their auto insurance rates if they add home or renters insurance? Are they married? Do they have children? What about a life insurance policy? Bottom line — and you probably already know this because it’s 101 stuff — don’t let them get out the door or off the phone without discussing the up-sell. It’s not just good for you. It’s good for them, too, and if you can approach it from that angle, your efforts will be accepted as genuine. A great start to any agent-client relationship!
Two: Never Look At A Customer As A Sale, Always Look At Them As A Relationship.
Sales are easy. You make one, you collect the money, you move on to the next big thing. But if that’s your mindset in the insurance business, you’re leaving a lot of money on the table. Leads in your marketing pipeline are always good to have, but why focus all your effort there in the HOPE someone will do business with you when there is untapped revenue from the people who already know and trust what you can do for them, and who, most importantly, have already ACTED? To maximize revenue, you need to be maximizing what you’re doing for the customer. The way to do that is to know them. Keep up with their life events. Notice changes in status. Make contact on their birthdays. Remind them to update their coverages. Insurance needs are ongoing for the life of the customer. They’re not one-and-done. By treating your client as a relationship, you’re showing them they are more than just a number, and you’re actually keeping them protected from the storms of life.
Three: When Communicating, Get Personal.
Every year at Christmas, I get a card from my insurance agent. I don’t toss this card away because I know it isn’t junk. While my agent does want to see me add business, and I’m sure that it’s partially a direct marketing tactic he’s using on me, the contents of the card are personal enough that I appreciate the effort. He’s also always kind and welcoming when I have to stop by his office for something. I’m not dumb. I know he’s a businessman. But his personal touches, whether in-person or through the mail, convince me that he cares. As a result, I haven’t shopped for insurance in nine years. Compare that to the average of every two years, and you get the point.
Four: If You Struggle With Being Too ‘Sales-y,’ Hire A Copywriter.
There are now programs that can spin informational articles with little difference in the structure, tone, and vocabulary, of an ordinary human writer. But even the program creators will tell you that their creations are extremely limited in their effectiveness. When it comes to adding heart, humor, warmth, and insight, you still need a writer to finish the job. That’s where a copywriter may be able to help your business if you feel too “sales-y” when approaching clients. Copywriters are changed to look past the features of a product and speak to the benefits. In other words, they can help you communicate to the client how products will actually make their lives better. This takes focus of the hard sell and gets the customer thinking about their own well-being. While some of you may be quite adept at communicating this without the aid of a copywriter, they can still be beneficial, especially since you should be keeping in routine contact with your customers.
(NOTE: “Routine” doesn’t mean “constant.” Learn your customer’s tastes. Don’t spam them. Just check in from time to time. Stay in their consciousness.)
A second policy is what opens the door to brand loyalty and long-term, recurring customers. Anyone can make a sale, but it’s what you do with that sale after it’s made that leads to success. What are some things that have helped you sell that second policy?