Top Tips For Selling Add Ons

INSPIRED THOUGHTS FROM SOME OF OUR BROKERS

On our travels around the UK Insurance Brokers, we frequently hear of how difficult the market has become. Once the insurance salesman visited you, then you visited his office. Now you pick up your phone or click your mouse. Direct writers and the internet has accelerated the direct phenomenon.

In spite of the adversity, we come across brokers every day who have found opportunities to grow their businesses.

The brokers that we witness embracing Add-Ons as a means of recapturing previously sacrificed margins are an excellent barometer for one way forward for insurance brokers.

Whilst some brokers struggle to get beyond the price issue presented by bargain hunting customers, many others recognise the changes that are still occurring in motor insurance.

Motor insurance renewals have tradionally been viewed as an annual chore, both for the customer and the broker. The more enlightened brokers now see capturing the core policy as the first point of contact, with an existing or new customer. Add-ons represent a wonderful opportunity for a business to improve the customer experience, and to offer the customer excellent value products that he really does need.

Here are a few Top Tips from some of our brokers who are achieving success with their add on strategy :-

• Develop a disciplined strategy for approaching the customer asfter securing the core policy
• Be prepared to give a little on commission for core products, regain it with add ons
• Research your customer needs, survey your customers to identify what products will suit them
• Whatever policy you are selling, acquire renewal dates and other essential data relevant to future sales
• Get out of the midset of selling everything or nothing at a fixed point in the year
• The more frequently you apporach and successfully sell products your customers want, the higher they will value your services at renewal
• It is cheaper and easier to sell more to existing customers than to pay for new ones
• Invest your money in an outbound selling strategy to existing customers first
• Insist on stand alone products that do not have to be sold concurrent with renewals, this frees you up to approach customers all year round
• Consider packaging two or three add ons together in a special deal. Many brokers achieve success offering three products for the price of two. Some add ons come cheap, even free to the broker and can be used well for these sort of promotions.
• Demonstrate value. Offer something like a "Gold" "Silver" and "Bronze" package. Customers like excellent packages representing great value.
• Lose your fear of "bothering" the customer. Brokers are professional advisors, your customer needs and wants your advice.
• Stop making excuses for making money. The old days of customer retention with no effort are dying fast.
• The transaction isn't over when you've secured the core policy, it's only just begun. Properly planned strategies for outbound calls will pay dividends.
• If you lose the core policy at renewal, don't give up! He doesn't become someone else's customer just because he has moved his main policy. You have opportunities to shine with add on policies and the service levels behind them. The new broker may upset the customer during the year and place him on the verge of returning to you. Give them every encouragement!
• Wherever possible, move away from the focus on price, concentrate on highlighting the increased levels of service and protection provided by the add on.
• Be persistent!

Brokers adopt different strategies for the way that they sell Theft Protect. It all really depends on how significant the price issue is to your business.

The three main choices brokers have illustrated to us are :-

• Compulsory sale - included with every policy
• Assumptive sale - included with quote giving customer opt out facility
• Upselling - selling the core policy first, then either upselling immediately or approaching later through outbound calling or other method.

Each has its pro's and cons.

Compulsory sales generate the highest volume, however they necessitate a lower premium. Brokers adopting this tactic tend to generate more income and profit due to the volume. Brokers however report that there are only so many add ons that can be succesfully built in before the overall price to the customer appears less attractive. Keeping the commissions low is key to the success in this category.

Assumptive sales work well. Brokers achieve as much as 75% take up in this category, again by reducing commissions, though not to the extent of the compulsory sale. The downside is the opt out rate can vary from region to region.

Upselling works particularly well once a broker has defined the strategic plan to outbound call the customer, or ensure the product is mentioned once the core policy is secured. The downside is more broker driven, by the attitude towards price as the most important factor.

We have examples of brokers that are selling Theft Protect stand alone, regardless of whether they hold the core motor policy. Some sell Theft Protect to their home or commercial customers, capturing motor details in the process. Brokers are successfully using this strategy in different parts of the UK. If you have yet to get started, what is stopping you?

There are plenty of innovative brokers out there with strategies that work. Become one of them.


These pages will continue to put forward broker ideas and inspired techniques that work. Share your successes here and hopefully you will find tips that will help you too!