Ultimately, many things in business boil down to customer satisfaction and their lifetime value. To do it right, cross-selling is an excellent method of business enhancement. In the face of the pandemic, people’s aversion to risk has increased, and more end-users are seeing the value in buying insurance. In such a scenario, an increasing number of companies with an existing captive user base are looking toward bite-sized, relevant insurance products to attach to their current product line.
While aggressively pushing additional insurance products could lead to losing a customer, understanding a customer’s changing needs and catering to their new requirements will only improve the chances of client retention and satisfaction.
Also, the financial benefits of cross-selling are no secret; a business and customer can stand to gain significant growth from cross-selling, such as:
- Increased revenue with little additional investment
- Increasing LTV customers
- Portfolio expansion
- Extending sales year
- Improving client relationships
- Additional value-added services and more
What insurance products can you use to start your cross-sell journey?
A bite-sized insurance policy covers specific user needs for a comparatively shorter duration. Since such policies are available at lower premiums and need minimal documentation or no tests, they’re ideal cross-selling buddies while customers purchase comprehensive insurances or other products.
Here are a few examples of sachet insurance products that are often cross-sold during a user purchase journey:
- Health and Life Insurance – Daily hospital cover, COVID-19 insurance, Dengue insurance, Return of Premium cover, etc.
- Motor and Travel Insurance – Roadside assistance cover, Cab-ride insurance, Backpack insurance, Flight cancellation insurance, etc.
- General Insurance – Mobile screen insurance, Online fraud protection, etc.
A great cross-selling strategy can strengthen relationships with your existing businesses, and a satisfied customer is likely to return to your company for future requirements. Since the current product purchase increases consistent contact with customers throughout the year, cross-selling paves the way for you to ensure customers’ physical, mental, and financial well-being while generating revenue. This interaction translates to value-adds and delivery of solutions to your customers.
Like all aspects of a business, cross-selling will also perform best when structured well. We’ve all seen the View Similar, Frequently Bought Together, and Customers who bought this item also bought sections on online e-commerce portals. They are nothing more than need-based cross-selling that all industries can incorporate.
Here are some of the best strategies to successfully cross-sell in the insurtech industry:
- Customer segmentation
Tracking client behavior and customer segmentation based on location, insurance type, age, income, home/vehicle possessions, family, etc., will open cross-selling opportunities for products they don’t currently own.
- Automated campaigns
Email campaigns have proved to be one of the ideal methods of contacting end-users that are unavailable over the phone. Thanks to customer segmentation, personalizing large email campaigns is now easier.
- Understand client requirements
One of the main reasons cross-selling fails is the pushing customers into purchasing a policy. Many end-users only consider purchasing insurance only when it is absolutely indispensable. So, understanding what qualifies as a necessity to them is imperative.
- Display your arsenal
It is vital that end-users know all of the products you have available for them to purchase. If an inventory of all insurance products your business has to offer is available for the end customer to peruse, they are sure to think of you at the time of need.
- Share the stats
With the power of technology in your arsenal, businesses are aware of more information about insurance than end-users. This knowledge could be of great advantage in letting the buyers know of discounts bundled insurance products could offer, facts and myths about insurance, case studies, etc.
The act of encouraging end-user customers to purchase insurance products that are much alike but pricier is up-selling. Fundamentally, up-selling is trying to sell advanced/expensive products compared to those customers initially had in mind. Both up-selling and cross-selling offer distinct benefits and are essential tools to advance business.
Cross-selling is an excellent strategy to boost your business revenue while keeping customer satisfaction in mind. While cross-selling could look like an aggressive method to many, if used well, this is a marketing strategy that will help uplift your business with minimal additional costs.