For many advisors, policy service is perceived as nothing more than an expense to be minimized. More enlightened advisors recognize that policy service – done well – is a marketing investment rather than an expense. Service done poorly is reactive and chaotic – usually reacting to events that have a negative context. Service done well is entirely different. You determine the frequency of interaction. You determine the tone of the messaging. You determine the content. You control the layout. You can highlight the positives during mundane times. You can offer peace of mind in turbulent times. You can offer up options that will never appear in a carrier statement or premium notice. Service done well keeps doors open to clients and opens new ones.
Below are 3 ways service can turn into sales.
1. Referrals
Sure, you can put a line in your communications that you welcome referrals, but why not deliver results that get clients to proactively send you referrals? People like to commiserate, but they also like to offer up suggestions that make them look like the hero. Do service poorly, and you’ll get recognition you don’t want. “My advisor never calls unless he’s selling something.” “I haven’t heard from my advisor since I bought my policy.”
If you’re doing a great job servicing policies – especially for centers of influence – it’s very likely you’ll benefit from a favorable shout out. “I’ve been pleased with the service I get from my advisor.” “Maybe my advisor could help you since your advisor isn’t in the business anymore.” These are earned referrals – not begged-for referrals. Taking it a step further, make the referrer look good by really delivering for the referral, and you’re far more likely to get another referral.
2. Cross Sell
Ever had a client buy a product or service you offer from another advisor? “I didn’t know you offered [long term care/disability/annuities].” Most clients aren’t scouring your website every time a need pops up. They Google the term to self-educate, or they ask a friend or advisor. Sometimes it’s just convenient to apply online as they research a topic. Staying top of mind for your clients with regards to the services you offer plants seeds for future harvesting.
It’s also important to recognize that needs change over time as lives and financial resources change. Maybe term insurance is right today, but a cash accumulation policy is right in 5 years. Long term care often becomes important when a relative or friend becomes impacted. Servicing a policy lets you keep your name in front of your clients and gives you an opportunity to gently remind them of all the services you offer in addition to the policy they own. This creates cross selling opportunities.
3. Upsell/Resell
Servicing gives you the opportunity to upsell clients as their needs or resources change because you’re more likely to be involved in the conversations. A simple change of address gives you an opportunity to increase their insurance to cover the new mortgage. Estate tax rates have increased or exemptions have decreased? They might need more coverage to cover estate taxes.
A name change may create an opportunity to sell a new spouse, but it could also trigger a higher need to care for children due to diminished financial resources from a divorce. It could also be an opportunity to ensure equitable treatment of children from prior marriages in a blended family. Changing jobs could be an opportunity to replace group insurance that may be lost. The possibilities are endless – if you create windows of opportunity through your service.
The resell opportunity can be great as well. Service can create believers in the benefits of insurance. Having peace of mind can be a powerful motivator. Servicing gives you the opportunity to plant a seed about expiring term or term conversion opportunities. It gives you a method to introduce new ways to use insurance beyond simple income replacement – key man, buy sell, accumulation for retirement income, executive benefits, or estate liquidity needs. An unwanted life policy could turn into a life settlement or an annuity.
Your clients probably don’t know all of the ways insurance can be utilized. They think death benefits – not living benefits like cash value or chronic illness benefits. Creating an open pathway for communication can spur conversations that wouldn’t otherwise take place with you.
At the end of the day, good servicing is a means to an end. All you really want to accomplish is to have a seat at the table as new opportunities arise. You do this by building trust over time, by reminding the client of services and products you offer, by showing clients new and creative ways life insurance can help in their lives, and by staying top of mind. You condition the client to believe that your interactions are driven by a desire to help. They learn to seek you out during periods of change in their lives. Referral sources seek you out for insights and guidance as well.
Servicing done well isn’t an expense. It’s a fantastic marketing investment that leads to better client relationships and better client outcomes. Aren’t you worth the investment?
About David Morris
David, as the Chief Marketing Officer at Proformex since May 2018, brings a rich history of leading marketing strategies in the technology and media sectors. His tenure includes significant roles such as CMO at MacroPoint, where he played a crucial part in its acquisition by Descartes, and founding the Communications Group, a platform that revolutionized digital revenue for media partners. With roots in media buying and strategic partnerships founded at Media Pro, Inc., David’s diverse expertise is complemented by his advisory roles in SaaS startups, board memberships, and a personal passion for both yoga and basketball.