limra 02 26 15 ver 3_3 final ver 2a copy
Post on 07-Aug-2015
62 Views
Preview:
TRANSCRIPT
WOULD YOU LIKE FRIES WITH THAT?
EVERY DAY MATTERS.®
BANNER. WILLIAM PENN.
LIMRA DISTRIBUTION CONFERENCE FOR FINANCIAL SERVICES February 26, 2015 Grant Andrew VP, New Market Development Legal & General America
ADVENTURES IN CROSS SELLING.
PREPARE TO BE SOLD. 2
• What is cross selling? • Where are the opportunities
in our industry? • Why cross sell? • Who’s open to a cross sell
recommendation?
Legal & General America – For internal use only. Not for use with the public.
THE BIG PICTURE.
3
Sell more to a new or existing client.
DEFINITION
Retain a client or increase client purchases.
OBJECTIVE
Disturb or lose a client.
RISKS
Combine cross selling with up selling.
LARGE BUSINESS STRATEGY
One platform / product sold by multiple industries or distribution systems.
SEGMENTATION
Legal & General America – For internal use only. Not for use with the public.
CROSS BUSINESS SERVICE SELLING.
4
Manufacturer Intermediary Distribution Consumer Segment
Legal & General America – For internal use only. Not for use with the public.
5
Direct To Consumer
Middle Markets New Clients
Independent Broker Dealers
Affluent Markets New / Existing Clients
P & C Healthcare
Middle / Emerging Markets New / Existing Clients
CROSS DISTRIBUTION AND SEGMENTATION.
Career Independent Distribution
Super Affluent / Emerging Markets New / Existing Clients
Wirehouses Banks CPAs
Super Affluent / Affluent Markets Existing Clients BGAs
MGAs Carrier
Legal & General America – For internal use only. Not for use with the public.
CROSS SELLING TO EXISTING CLIENTS.
13.4 14.3 13.5 11.6 12.1 12.4 13.1 13.6 13.9 14.5 15.1
$0
$5
$10
$15
$20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(Ann
ualiz
ed P
rem
ium
) Bill
ions
As Reported Forecast
Source: LIMRA 4th Quarter 2012 preliminary results ($12 Billion in Life Sales is based on LIMRA projecting 30% of the sales)
274 million life insurance policies in force! Statistics portal
6 Legal & General America – For internal use only. Not for use with the public.
Source:
US DEMOGRAPHIC OPPORTUNITIES.
7 Legal & General America – For internal use only. Not for use with the public.
8
WOMEN.
51% of population 85% of consumer purchases 60% of wealth in US
Source: THENEXTWEB.COM 2012
CULTURES.
15M Asian 51M Hispanic
39M African American 12-32M LGBT
320M Americans 82% live in cities
Source: Wikipedia 2012 and 2013
157M Facebook 500M Twitter 259M LinkedIn 1B YouTube
Source: Wikipedia 2012 and 2013
SOCIAL MEDIA.
GENERATIONS.
Target 78% of US 82M Gen X 76M Gen Y 79M Baby Boomers
Source: LIMRA Life Insurance Ownership Across the Generations August 2011
IMPLICATIONS.
• Women matter • Generations matter • 71% of US population are minorities including women
• How to reach them matters
9
Source: Wikipedia 2012 and 2013
Legal & General America – For internal use only. Not for use with the public.
WHY CROSS SELL? • Retain clients? • ROI? • Client satisfaction? • Something else?
10 Legal & General America – For internal use only. Not for use with the public.
Legal & General America – For internal use only. Not for use with the public.
FIVE REASONS. • Acquisition costs
• Retention
• Market Share
• Diversification
• Satisfaction
11
6-7 times more expensive to acquire new client
5% increase can increase profitability by 75%
Products per Clients per line: 6.1 retail banking, 6.8 wholesale banking, 10.3 wealth management 80% of future revenue can come from 20% of customers
80% brag about superior service, 8% of customers agreed
Source: Acquisition Costs: Bain & Co and HBR, Captora 2012-15, Retention: Zero Defections: Quality Comes to Services- HBR, Sept-Oct 1990, Market Share: February 13, 2012 Forbes; Wells Fargo, Diversification: Gartner Group, Entrepreneurs 11/02/12, Satisfaction Forbes.com IBM, 2011 study
$7 priceline.com vs.
$315 Sprint PCS
Legal & General America – For internal use only. Not for use with the public.
Legal & General America – For internal use only. Not for use with the public.
WHO’S DOIN’ IT? 12
Suggestive Marketing Similar clients purchased?
Bundling Up-selling Something to drink?
Complete Line Marketing Head-to-foot apparel!
Upscale Marketing Shoes to match your outfit?
On-boarding Bundling Do you need???
HOW DOES IT APPLY TO LIFE INSURANCE?
• Client process reviews.
• Mortgage refinancing and term insurance.
• Right amount.
• Want to add an LTC rider?
• Cost of Living rider?
• Complete insurance product line.
• Complimentary products and riders.
• Products for retirement.
• Annuities, LTC, IUL etc.
• Client satisfaction reviews.
• Proactive on-boarding calls.
• What else does the client need?
HOW TO DO IT. FIVE STEPS 1. Segment customers 2. Measure purchases 3. Identify those apt to buy 4. Target stores / regions 5. Develop and execute
campaigns
13
FIVE PRINCIPLES 1. Measures/ Alignment 2. Sales support 3. System integration 4. Annual plan 5. Products
Legal & General America – For internal use only. Not for use with the public.
OPPORTUNITY. 14
#
Demographic Segment
US Population (Wikipedia 2014-15)
Percent with Life Insurance (LIMRA *)
US Pop Uninsured
US GDP $12-14 Trillion
Growth Expectations (Wikipedia 2015)
Women/ Minorities 71-75% 18-54% 9-90M $8.5-10 T-
60-75%
1 Women 158.6M/51.0% 43% 90M $5-7T 50+ control $19T net worth*
2 Hispanics 50.5M/16.4% 53% 23.73M $1T 30.6% of US / 2060
3 African Amer. 38.9M/13.0% 54% 22.68M $1T 14.7% of us / 2060
4 LGBT 12-32M/ 6-10% N/A 9-15M $790B N/A
5 Asian 14.6M/4.8% 47% 9.54M $780B 8.2% of US 2060
Generational 78%
1 Boomers 79M/ 25.6% 43% 45.03M 70% US
net worth 10,000 retiring daily
2 Gen X 82.1M/ 26.6% 33% 52.93M N/A N/A
3 Gen Y 76M/ 24.6% 18% 54.72M N/A N/A * Other Sources: LIMRA’s The Hispanic American Financial Experience 2014; Marketing to hispanics.net: Say Hello to Hispanic Shoppers: Marketing to US Hispanics,
January 3, 2014; Black Enterprise.com: African American Buying Power November 28, 2013; LIMRA’s LGBT Financial Experience, August 2012; LIMRA’s Marketing to Chinese Americans and Asian Americans 2003: she economy.com
Legal & General America – For internal use only. Not for use with the public.
ABOUT WOMEN. 15
• Talk straight. • Keep it simple. Learn what matters to her. Be honest and caring.
• Listen to her. Talk to her, not at her.
• Give her examples to which she’ll relate.
Legal & General America – For internal use only. Not for use with the public.
A CAMPAIGN. 16
Within 60 Days of Renewal
Conduct an annual review.
Within the 1st Qtr Send a thank you note. Include a simple sales idea.
Within the 2nd Qtr Send a card to say she’s appreciated (Mothers day). Ask if she’d like to talk about family coverage.
Within the 3rd Qtr Try a newsletter that’s purely educational.
Within the 4th Qtr She’s over 50, send her information on estate planning.
• Support with online chat, dedicated 800 number, screened / trained WOMEN agents
• Send the marketing to both potential / existing clients
QUESTIONS? 17
Thank you.
Legal & General America – For internal use only. Not for use with the public.
THE BIG PRINT. 18
Legal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Garden City, NY. Banner products are distributed in 49 states and in DC. William Penn products are available exclusively in New York; Banner does not solicit business there. Not for public distribution. For agent/broker use only. 15-023
Legal & General America – For internal use only. Not for use with the public.
top related