In an age of uncertainty, businesses must be prepared
As a commentator from Ernst & Young recently said, there has never been an era where the world was more in need of a high-performing insurance industry.
Commercial customers have a greater need for insurance services than ever before. Businesses today are operating in a volatile global environment and challenging risk landscape; they are looking for ways to protect themselves from unpredictable disruptions, as well as managing evolving needs and building resilience against emerging risks.
Likewise, the insurance industry itself is on a pathway to recovery following the global pandemic and prolonged period of economic turmoil. Operating in a hard market means being more efficient and keeping costs under control – doing more with less. The key to achieving this is for insurance brokers to generate more value from their existing book of business.
A Consultative Approach
The ultimate goal of every commercial insurance broker is to provide such a high level of service that clients simply cannot imagine doing business with anyone else. In today’s competitive business environment that means doing more than simply selling insurance and contacting customers at renewal – brokers must constantly look for ways to add value:
- Engage regularly and contextually
- Be proactive in understanding needs
- Deliver tailored client experiences
- Provide essential business-critical insights and specialist advice
Insurance brokers must be consultative, not transactional. It’s about building stronger relationships, being purpose-led in interactions with clients, and being proactive in caring for, and ideally one step ahead of, their needs. Vitally, brokers must always be relevant to the client landscape, aligned to needs, and deliver on that all-important long-term value factor.
In short, brokers must cultivate the opportunities that exist within their existing book of business. That’s right, I’m talking about upselling and cross-selling.
The Upsell/Cross-Sell opportunity
Existing customers are easier to sell to by far. In fact, an insurance broker is 60-70% more likely to sell to an existing client, compared to the 5-20% likelihood of selling to a new prospect. It will also cost 5-25 times more to attract clients rather than keep existing ones, but a mere 5% increase in client retention can increase a brokers profitability by 75%!
Upselling and cross-selling means that not only are policies per account more profitable, but it fosters a stronger sense of trust, establishing the broker as an advisor rather than simply a service provider. This in turn increases customer satisfaction and retention.
The opportunity is huge. According to the most recent EY Global Insurance Survey, only 50% of SME commercial clients are confident in the coverage they have purchased. That’s a lot of businesses whose needs are not fully being met.
Upselling and cross-selling demonstrates to clients that their broker is purpose-led – working to meet and exceed their expectations by looking after both their immediate and future insurance needs. It doesn’t have to just be policy-related services, opportunities to go above and beyond standard insurance provisions will also be appreciated such as:
- Risk Management – as we enter a hard market, clients will be expecting more from their brokers. Likewise with competition fierce brokers that don’t respond quickly and innovatively to help reduce claims as well as protecting and reducing their clients risk exposure will lose them to a broker that will. Providing Risk Management services is also a great engagement touch-point opportunity and relationship builder.
- Employee Benefits – the world of work has been fundamentally changed by COVID, hybrid and home working is becoming the norm as well as companies opening up new recruitment opportunities. Employees are savvier, they’re looking for higher salaries, improved work-life balance and better benefits. Brokers can add significant value by working with their clients to help them attract and retain their workforce with a great protection package.
- Trade Credit – COVID has left a legacy of financial difficulty that businesses will be dealing with for some time to come. There has never been a more important time for brokers to discuss trade credit insurance with clients; demonstrating they’re a trusted advisor invested in their long-term financial sustainability.
Harness Upselling and Cross-selling Know-How with Artesian Connect™
Artesian believes insurance brokers must become better strategists and tacticians. They must put themselves in a position to respond fast and first to the changing needs of clients with proactive upsell and cross-sell capabilities:
- Deeper Understanding: Up to date insights on the client’s business operations, financials, and people, as well as their market and competitive landscape, mean that brokers intuitively know at any given moment what matters most in the client’s world, and therefore what upsell/cross-sell products will be of most benefit.
- Improved Relevance: Customer data triggers enable brokers to analyse what policy or value-added service, such as risk management, will have the greatest impact. The result – improved relevance and enhanced probability of success of any upsell or cross-sell approach.
- Timing: Boost the chances of upsell or cross-sell success by using what you know about the customer to get in touch at the optimal time – again customer data triggers can pin-point an insurance moment such as a particular need or a change in circumstances
Artesian ConnectTM combines leading advances in data science with a revolutionary way to harness the plethora of internal data, insight and experience that sits within a broker business and supercharge it with external data enrichment.
Artesian call this the Know-How Equation™. Artesian Connect™ combines everything an insurance broker knows about its customers, business and market, and leverages an advanced rules-engine that ingests millions of structured and unstructured data points to layer on top of that know-how, quickly delivering the impactful data and actionable insights needed to deliver the ultimate in upsell and cross-sell acumen.
Get in touch with me today to discuss how Artesian can help you harness the know-how to supercharge your upselling and cross-selling success.