A Simpler Way to Cross Sell (An easy way to convert P&C clients into financial products clients!)

Transcription

1 A Simpler Way to Cross Sell (An easy way to convert P&C clients into financial products clients!) O. William O Quin, CLU, ChFC, RFC Bill O Quin is President and co-founder of Financial Services Online (FSO), located in Austin, Texas and on the Internet at Prior to starting his own company, he was General Manager of the largest multiline agency in the Prudential Insurance Company. Mr. O Quin is a 40-year veteran in the financial services industry, having served as an agent, agency head and home office executive. He can be reached at (225) or boquin@ix.netcom.com. Adapted from The Virtual Assistant. The Virtual Assistant (VSA) is owned and copyrighted by Virtual Sales Assistant, LP, managed by Financial Services Online (FSO), contains additional copyrighted content provided by The National Underwriter, and is located on the Internet at Unlimited access to sales support is attained via a password and userid at an individual cost of $21.95 per month, which includes all content updates and enhancements. Company sponsorships can reduce this cost. For additional information visit our Web site at or call us at (225) Much is said and written about "cross selling" for the multi-line insurance agent. In fact, maybe too much is said and written, because the real truth is that it is just not that difficult to do. In essence, you only need four things in order to be effective in Cross Selling 1. Product; 2. Prospects; 3. Process (a simple one!); and 4. Knowledge. We ll start with the assumption that you already have one and two above. Your company will gladly provide the products and you already have a customer base the prospects. That provides 50% of the equation now let s discuss the other half! The Process Most successful financial services professionals have sophisticated prospecting systems for both new prospects and current clients. Arguably, the most important part of these systems is timing being there when the prospect and/or client is ready to purchase. What follows is the abbreviated course for P&C agents. Most good insurance selling processes have at their core a systematic method of staying in touch with prospects and clients. The blessing (and perhaps the curse!) of the P&C business is that the product itself requires continual contact with the customer. So, like it or not, you already have such a system

2 The question then becomes how do you know when they are ready to purchase life insurance? The answer is easy--just ask them! Since most of us are not too excited about just asking, Are you ready to buy some life insurance? every time we see a customer, the Virtual Assistant has developed the Priority Planning Review (see Appendix 1). A personalized edition of the Priority Planning Review is part of Virtual Assistant located on the Net at In essence, the Priority Planning Review (PPR) is a simple fact finder designed to be completed not by the agent, but by the client. Here is an abbreviated how to. 1. Complete or have your Customer Service Representative (CSR) complete the Personal Information section prior to giving the PPR to a customer. 2. Give the PPR to your customer/prospect and say something like this: Since I provide more than automobile (etc.) insurance, I ve found that the best way for me to show you the kind of work we do is by using this Priority Planning Review. The questions will tell you what else we do and the answers will let us know if I can be of further help. It should take you just five minutes or so to complete. Or you can have your CSR say: Since our agency provides more than automobile (etc.) insurance, we ve found that the best way to inform our clients about our other services is by using this Priority Planning Review. The questions will tell you what else we do and the answers will let us know if we can be of further help. It should take you just five minutes or so to complete. Note: Paying a small bonus to your CSR for getting the PPR completed is a very good idea! 3. Hand the PPR to your customer/prospect and let him/her complete it. Don t do it yourself! In fact, it is better if you leave the room. (Your CSR can use the time to complete and review other transactions.) 4. Collect the completed PPR and, depending upon your financial service confidence, either review the PPR right then, or tell the customer/prospect you will review it later and call if there are any other services you can provide. 5. Review the PPR, paying particular attention to the Current Priorities section. If the timing is right, the customer/prospect will tell you by checking off his/her current interests. If your customer/prospect is a business owner, be sure to review the Business Owners Only section. 6. Call or tell your prospect: I see you indicated that life insurance on yourself is a current priority. Would you like for me to prepare a proposal? Or have your CSR say, I see you indicated that life insurance on yourself is a current priority. Would you like our financial services department (or you) to prepare a proposal? - 2 -

3 If the customer/prospect says yes, you now have 75% of the cross-selling process behind you. The Knowledge The last step requires "knowledge" and you have at least two choices. First, call in an expert...a financial service professional in your community who specializes in your prospect s area of interest. Knowledge costs, so split the business if necessary. Your second choice is to do it yourself. A wise man once said, I may not know all the answers, but I do know where to go to find them. One good source of help is The Virtual Assistant at You can use any one of the 100 or so VSA personal, business or estate planning presentations and calculators. They are all comprehensive and complete and, most important, already prepared for you! Here are a few of the most popular: A Lesson in Life Insurance Survivor Needs Analysis Retirement Needs Analysis Mortgage Acceleration Analysis Deferred Annuity IRA Business Loan Insurance Cross Purchase Buy-Sell for Partnerships Everything (and perhaps a lot more!) that you need is inside the VSA, but don't let it overwhelm you. Just use what you need in order to make a specific sale. However, you can take comfort in the knowledge that just about any question your prospect might have is answered in the VSA. Further it is always accessible...24 hours a day, 7 days a week. In addition to the presentations, calculators and a plethora of Sales Support Material, the VSA provides a Referred Leads Generator that provides you with the names of all your client s neighbors but getting referred leads is another subject! - 3 -

4 Priority Planning Review A Brief Overview of Your Financial Plans and Priorities Provided by: Contents Personal Information Personal Planning Profile Financial Statement Financial Planning Priorities Current Priorities Future Plans For Business Owners Only Introductions Page Priority Planning Review 1

5 Personal Information Name: Date: / / Age: Birthdate: / / Home Phone: Cell Phone: Personal Home Address: Own Rent Employer: Position: Business Address: Business Phone: (City, State and Zip) Business If Married: Spouse s Name: Age: Birthdate: / / Employer: Position: Business Address: Business Phone: Business Children: Name Age Sex Personal Planning Profile Please check the boxes that reflect your current planning. Yes No? I know the income my family will receive from my estate assets. I have a current will consistent with my estate distribution wishes. My executor is familiar with my estate plan. A guardian has been appointed for my minor children. I have reviewed my life insurance program in the last two years. I participate in a tax-favored retirement plan. I understand the impact of inflation on my retirement plan. I maximize my annual tax-favored plan contributions. I am satisfied with my current investment returns. I save on a weekly or monthly basis. My income is protected in the event I am sick or hurt and cannot work. I am fully covered for health care costs, including the costs of long-term care. I fully understand and have checked my Social Security benefits. Priority Planning Review 2

6 Your Annual Income Financial Statement Please check the boxes that best reflect your current situation. INCOME Spouse's Annual Income Less than $50,000 $50,000 to $100,000 $100,000 to $250,000 More than $250,000 ASSETS (excluding home) LIABILITIES (excluding home mortgage) Less than $50,000 $250,000-$500,000 Less than $25,000 $150,000-$250,000 $50,000-$150,000 $500,000-$1,000,000 $25,000-$75,000 $250,000-$500,000 $150,000-$250,000 More than $1,000,000 $75,000-$150,000 More than $500,000 Value of Home: $ Home Mortgage: $ CURRENT SAVINGS AND INVESTMENTS Savings and CDs Bonds 401(k) Salary Deferral Money Market Fund Life Insurance Cash Value Pension/Profit Sharing Plan Mutual Funds Tax-Deferred Annuity Other: Stocks IRA or SEPP Other: Your Total CURRENT LIFE INSURANCE Spouse's Total Less than $50,000 $50,000 to $150,000 $150,000 to $500,000 More than $500,000 Financial Planning Priorities Please check the boxes that most closely reflect your financial priorities. H = High Priority M = Medium Priority L = Low Priority N/A = Not Applicable H M L N/A Planning for my retirement is a... Protecting my family's lifestyle in the event of my death is a... Saving and investing on a regular basis are a... Providing educational funds for my children is a... Protecting my income in the event of sickness or accident is a... Providing funds to pay my mortgage and debts in the event of my death is a... Protecting against the costs of long-term health care is a... Investing money in tax-favored plans is a... Low risk investments are a... Investments that offer high growth potential are a... An overall financial plan is a... Involvement of my spouse in our financial planning is a... Priority Planning Review 3

7 Current Priorities Please check all items you are interested in discussing. A financial analysis Planning for retirement How to pay estate taxes Ways to protect my family's lifestyle Mortgage protection coverage Insurance on myself Converting temporary insurance Tax-favored investments/annuities Ways to protect my income in the event of sickness or accident Insurance on my spouse Insurance on my children/grandchildren Protecting against the costs of long-term health care Methods of charitable giving A systematic savings plan Existing policy review My automobile insurance (renewal date / / ) My homeowners insurance (renewal date / / ) Other pertinent information: Future Plans Please check all that may apply within the next two years. New home Bonus Inheritance Change job Salary increase Charitable gifts Lose weight Marriage Sell business Stop smoking Children Sell property Pay off loans Save more Other: Start business Retirement For Business Owners Only Please check any items of interest or concern. Business Continuation Planning Buy/Sell Plans Key Employee Insurance Disability Income Long-Term Care Insurance Qualified Pension Plans (IRS approved, 401(k), SEPP, etc.) Other: Executive Bonus Plans Group Insurance Business Overhead Expense Protection Business Loan Insurance Payroll Savings Plans Nonqualified Retirement Plans (No IRS approval required) Other: Priority Planning Review 4

8 Introductions Others you feel might benefit by completing a Priority Planning Review, such as neighbors, co-workers, small business owners, family members... Name Telephone Number Thank you for completing the Priority Planning Review! NOTES... The information, general principles and conclusions presented in this report are subject to local, state and federal laws and regulations, court cases and any revisions of same. While every care has been taken in the preparation of this report, neither VSA, L.P. nor The National Underwriter Company is engaged in providing legal, accounting, financial or other professional services. This report should not be used as a substitute for the professional advice of an attorney, accountant, or other qualified professional. VSA, LP All rights reserved (VSA ff-08a ed ) Priority Planning Review 5