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Upselling to Increase Customer Satisfaction and Retention

The definition of upselling according to Business Dictionary.com is a ‘sales strategy where the seller will provide opportunities to purchase related products or services, often for the sole purpose of making a larger sale’.

This makes upselling sound like a dirty word and not a benefit for the client.  In fact, upselling can increase your customer satisfaction and retention by providing necessary coverage through risk management techniques that will allow you to meet or surpass your customer’s satisfaction.  

How many times as an insurance agent has a client asked you “Why didn’t you tell me about XYZ coverage?” after a loss?

The secret to successful upselling is to provide a potential loss scenario to the client that illustrates the possibility of loss or injury that could affect that individual client or his/her property.  

Upselling should not be a sales strategy but instead a path that walks a client through specific peril filled obstacles with the idea to diminish the client’s exposure through avoidance of risk, mitigation of risk, transfer of risk and acceptance of risk.

Let’s face it, insurance is only necessary after the time of a loss.  When the expected coverage is not there, the client blames the agent.  The average agency loses around 20 percent of its non-retained clients base due to disappointment with coverage at the time of a claim.  The customers that receive the proper coverage at the time of a claim are one-third more loyal than other customers.  

By not upselling, an agent is failing to attend to his customer relationship and let’s not forget that the documentation of upselling is also a tactical approach for errors and omissions protection.

 

Read more: http://www.businessdictionary.com/definition/upselling.html

 

Written on August 23, 2017 by Peggy Corbett



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