I’ll wager most people aren’t surprised if a waitress offers them a side salad with their main course or a drink while they wait for their food to be delivered, and most of us appreciate the attentive service. So why are mortgage brokers reticent to cross-sell in the same way?
In today’s market place there simply aren’t the levels of income to be achieved from mortgage sales alone and those brokers who have thrived have been those willing to adapt their models and consider complementary products and services. Understanding your customers and offering relevant and timely ancillary services could be the way to differentiate your business from the competition.
The odd salad or bottle of beer won’t change the fortunes of a struggling restaurant, and it is likely that the low value contribution to the bottom line by GI sales has played a role in limiting uptake by brokers, but the diners who come back time and again for the best service are those that will spend significantly more money on the expensive four course dinners with wine, and may even recommend the restaurant to their friends. Significantly superior service has a way of leading to significantly higher sales. I’m not suggesting brokers don a pinny and set up tables and chairs outside their front door, of course, but I am suggesting there’s a lesson to be learned about using relevant cross selling techniques to significantly grow a more sustainable business.
Here are just a few reasons why cross selling GI is important:
– Advising clients of the importance of protecting their income or their homes, for example, and ensuring that they are adequately covered, is a moral obligation for brokers
– Sales of GI products might be perceived as niche or low value in terms of income, but brokers need to maximise the value of every sale by ensuring they meet all the insurance needs of every customer. In terms of service, the ability to have a trusted broker advise and source their GI insurance can be a major market differentiator
– Consumers need insurance at the end of the day, and in such a competitive landscape, if you don’t offer customers their travel, pet, or household insurance, then someone else will. Cross selling insurance could prove a valuable tool in retaining as well as winning new customers to generate income
– The regular nature of the income stream that comes from selling GI has meant that the market is highly competitive. From the major direct insurers and high street insurance brokers to the online comparison sites, everyone wants their share of this sustainable multi-billion pound pie
– A sustainable business ultimately commands a greater value – an important consideration for those brokers planning an exit though a sale
Entry into this market space might seem a daunting prospect to an intermediary who has only sold buildings and contents or mortgage payment protection in the past, but there is an opportunity for brokers to capture their fair share.
You don’t have to go out and buy expensive leads – maximise existing contacts. Your customers already trust you to help them with their mortgage. So take the opportunity to demonstrate that this trust is well-placed and show them what else you can do for them.
Investigate those distributors, ourselves included, who give brokers access to customer-friendly aggregator sites. There are a number of smaller operations who offer a good alternative to the big three and are concerned with offering the right product at the right price.
Investigate the marketing and training support services that intermediary-friendly GI distributors have available. Of course you will always be responsible for your own compliance, but for a small fee most GI providers will equip you with marketing materials that you can tailor to reflect your own brand, from approach letters to your clients to newsletter templates to brochure ware. Assurant Intermediary also offers training on its products either on site or via comprehensive online guides and courses.
Some brokers, while happy to identify cross-selling opportunities and keen to capitalise on both the marketing benefits and added income that GI sales can bring, might not have the appetite or even the time to finalise the sale themselves. They might also simply prefer to let their clients know that their GI is being arranged and provided by a specialist in this type of insurance, and pass the business via an introductory facility to them, while still earning a reduced commission. Either way, the broker earns valuable sustainable income and customer loyalty, and customers get a more rounded service and the cover they need.
Kevin Paterson, sales and marketing director, Assurant Intermediary
