As the upcoming open enrollment period approaches, carriers will once again be tasked with how to best navigate consumer expectations and financial pressures brought about by the growing consumer marketplace.
As carriers finalize product designs and determine the best products and services to acquire members, they will need to focus on a retention strategy as well. With the cost of acquiring a new customer costing as much as five times more than retaining an existing one, customer retention and driving ancillary insurance sales should be a priority for insurers.
As we shared in an earlier post about customer experience and retention, the banking industry uses free checking accounts not just to acquire customers, but as the wedge offering to retaining them. Once customers are acquired, a cross selling strategy is launched promoting other products such as personal loans, credit cards and other financial services that would make it harder for people to leave and ultimately increases the lifetime value of each customer.
Insurers can follow banking’s lead, but how?
Fortunately, carriers can leverage technology to retarget members to drive ancillary insurance sales and maximize the revenue potential from cross-selling and upselling products throughout the entire consumer lifecycle.
Industry specific solutions such as our InsureCX CRM solution with real-time data analytics allow carriers to gain deep knowledge of all customer interactions and life event changes. Sales and marketing teams would greatly benefit from this multi-channel perspective by providing them with the ability to create personalized communications strategies tailored to member events or segments to increase ancillary product sales.
The Opportunities In Ancillary Insurance Sales
It’s imperative that carriers prioritize member retention and how they can identify additional revenue opportunities. This ancillary product sales infographic below is an example of how carriers can retarget members to drive product sales.