Cross-selling is a powerful marketing strategy that can help financial institutions increase their revenue and customer loyalty. One strategy is to cross-sell is to offer auto or home insurance – services not typically associated with FI’s – to customers who have already taken out a loan.
Cross-selling is a powerful marketing strategy that can help financial institutions increase their revenue and customer loyalty. One strategy is to cross-sell is to offer auto or home insurance – services not typically associated with FI’s – to customers who have already taken out a loan.
There are several reasons why cross-selling auto or home insurance to bank loan customers is so effective. First, these customers are already familiar with your brand and trust your institution’s products and services. Second, these customers are likely to be interested in protecting their assets, such as their car or home. Third, cross-selling auto or home insurance can help banks generate additional revenue and increase their customer lifetime value.
To make cross-selling auto or home insurance more effective, it’s important to develop an understanding of who your existing insurance customers are to identify who is more likely to want insurance products. Institutions with insurance products should develop an insurance cross-sell segment based on that analysis. Once the segmentation is developed, it’s time to communicate – craft multi-touch, multi-channel marketing plans to get in front of the right targets.
Here are some specific tips for cross-selling auto or home insurance to bank loan customers:
Be personal and relevant.
When you’re talking to a customer about auto or home insurance, be sure to personalize your pitch and make it relevant to their specific needs. For example, if the customer has a young child, you might mention the importance of having life insurance to protect their family in case of the unexpected.
Offer a discount.
Many banks offer discounts on auto or home insurance to their loan customers. This can be a great way to sweeten the deal and make it more likely that the customer will sign up for a policy.
Make it easy to sign up.
The easier it is for customers to sign up for a policy, the more likely they are to do so. Make sure that your application process is clear and concise, and that you offer multiple ways for customers to sign up (online, over the phone, or in person).
Follow up.
After you’ve made a sale, be sure to follow up with the customer to make sure they’re happy with their policy. This will help to build customer loyalty and increase the chances that they’ll do business with you again in the future.
By following these tips, banks can increase their success in cross-selling insurance to their loan customers, leading to increased revenue, improved customer loyalty, and a stronger bottom line.
Syntropy Group had a long track record of helping banks and credit unions grow through multi-channel, data-driven marketing. Whether you’re looking to onboard new customers or strengthen relationships with existing customers, we can help. Contact us today at growth@syntropygroup.com to learn more.