Adopt these Strategies to Encourage More Disability Insurance Sales
Wednesday, August 19, 2015
According to marketing experts, you are more likely to sell products and services to an established customer than you are to gain a new customer. In fact, existing customers will purchase additional services from you 60 to 70 percent of the time while selling to a new customer happens only 5 to 20 percent of the time.
Additionally, research by Bain & Company says that it costs 6 to 7 times more to acquire a new customer than it does to keep an existing one.
What this should tell you is that your existing customers are extremely valuable. Use these simple strategies to maintain and maximize your relationship with existing clients.
For most of your clients, income and net worth will change every year. As personal wealth increases, disability insurance policies should be reviewed and updated. Get in the habit of reviewing policies with your existing clients every year on their policy anniversary date. Remind them that regular updates will prevent headaches if they ever need to utilize their policies because of illness or injury.
If you have clients who believe they are too young or healthy to need disability insurance, have a conversation about securing policies before they’re needed. The chances of becoming disabled during a career are far higher than premature death, which means everyone with a paycheck needs adequate disability coverage.
Look for Coverage Gaps
A lot of disability insurance polices have 60 to 120 day elimination periods before they become effective. If your clients aren’t prepared to cover their expenses during that time, suggest critical illness insurance to fill in that gap.
Breadwinners obviously need disability insurance, but what would happen to a family if a stay-at-home spouse were to become critically ill or injured? The cost of replacing the labor associated with maintaining household demands could throw a family’s budget into a tailspin. Ask clients to consider how much it would cost to cover childcare, in-home care, and household management if their spouse were even temporarily disabled. If it would be a stretch, as it would be for most families, ask them to consider updating their disability insurance to include their spouse.
Be Considerate of How you Keep Clients Engaged
There’s no doubt that it’s important to keep existing clients engaged with regular communication. But the way you engage with them is equally important.
· Don’t overburden clients with unnecessary or unimportant information. If you send out a newsletter or email updates, be sure that there’s a good reason for clients to read what you’ve sent.
· Express appreciation for their business on a regular basis so they understand that they are important to you as clients.
· Ask for referrals, but do it on an individual basis rather than to an entire group. Be sincere and personal in your approach and your clients will be more likely to take your request seriously.
Contact us anytime with questions about working with your clients to protect their paychecks. We’re always happy to offer suggestions about keeping existing clients happy and engaged in your business.