Many Medicare agents have heard about the value of cross selling; we will explain how cross selling boosts client retention.
Cross selling can boost client retention
Retaining clients in the Medicare insurance space is both challenging and essential, especially given the competitive nature of the industry. One way agents can increase client retention is cross-selling. It is important to know, cross selling isn’t only about increasing sales. It’s a customer-focused approach that can enhance your clients’ experiences, meet their needs, and build lasting relationships. Cross-selling Medicare-related products can lead to greater client loyalty and retention.
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How cross selling boosts client retention
Cross-selling is the practice of offering products that compliment your clients existing coverage to meet any additional needs they have. For Medicare beneficiaries, these additional products might include:
- Dental, Vision, and Hearing Plans: These services are often not covered by Medicare, making them valuable add-ons for clients.
- Hospital Indemnity Insurance: Provides a cash benefit for hospital stays, which can help offset the cost of high copays or deductibles.
- Cancer, Heart Attack & Stroke: This product is also called critical illness, and it is not difficult to sell. Plans provide a one-time payment after a diagnosis is made.
- Long Term Care/Short Term Care: As clients age, they may consider long-term care insurance to cover potential assisted living or nursing home costs.
- Final Expense or Burial Insurance: Plans help beneficiaries plan for end-of-life expenses, easing the financial burden on their loved ones.
Each of these products fills gaps in Medicare coverage, helping clients avoid unexpected medical expenses and have a more robust coverage portfolio. Keep in mind, it is important to understand the client’s budget before you show them quotes that fill their coverage needs.
Stronger Client Relationships
Cross-selling enhances the relationship between agents and clients by allowing agents to provide a one-stop solution for various health coverage needs. Purchasing multiple products from one trusted advisor helps clients feel their agent knows all their needs and can coordinate coverage options. Over time, this leads to greater loyalty, as clients appreciate having an agent who goes beyond basic Medicare plans to provide greater coverage solutions.
This personalized approach also allows agents to stay in regular contact with clients, building rapport and trust. For example, an annual review meeting to discuss any changes to Medicare Advantage or Supplement plans can be an opportunity to address new needs for dental, vision, or hearing coverage.
Please note: any product not included on the original scope of appointment must be entered onto a new form and in some cases, a follow up appointment must be made to discuss these products.
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Increased Client Satisfaction
Clients who have multiple policies with the same agent are more likely to be stay with that agent. Their agent can provide comprehensive tailored coverage. This ensures clients are less likely to shop around for other options or leave for competitors.
With a diversified insurance portfolio that’s thoughtfully assembled, clients have fewer reasons to look for alternatives. For example, a client who has a Medicare plan plus dental coverage, and hospital indemnity insurance is far less likely to leave than a client who only has a Medicare plan.
Increased revenue can translate to better service
Cross-selling generates additional revenue, enabling agents to invest more into client services, technology, and communications. This can translate into better customer service such as easier appointment scheduling, regular newsletters and reminders about important events.
Enhanced service can give clients more reasons to stay, as they recognize the added value their agent provides.
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Meeting needs for different stages of life
Medicare clients, typically 65 and older, experience changes in healthcare needs over time. Life events such as retirement, chronic illness, or the need for long-term care can prompt clients to seek additional coverage. By proactively offering products that address these changing needs, agents can retain clients as they age.
When agents anticipate and respond to these needs, they reinforce their role as trusted advisors. This increases the likelihood they will retain their clients.
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Education is key in cross selling
Cross-selling Medicare products requires a balance of education and transparency. Ensuring that clients understand each product and its value is crucial. This includes explaining coverage gaps in Original Medicare, discussing out-of-pocket costs, and answering any questions about benefits.
Educating clients on each product works with their current coverage builds trust, as clients feel empowered rather than pressured. Ethical cross-selling focused on education not just commissions is a best practice that can foster client loyalty.
Listen to the client and boost client retention
Getting to know clients is an important part of the sales process. It helps identify health concerns and gaps in their coverage. Pay attention when a client mentions a concern or family history of cancer or other critical illness. Listening to clients as well as learning how to cross-sell life and health products helps you reach client retention goals.