Cross-selling can give you greater share of wallet and increased practice profitability. By offering to provide a range of products and services, such as mutual funds, insurance products, financial planning and tax planning services to clients who currently receive only one type of product or service, you can also foster long-term client loyalty.

“[Cross-selling] is the cornerstone of building a successful practice,” says Raymond Yates, financial advisor and senior partner with Save Right Financial Inc. in Mississauga, Ont. “It is a process that allows you to fulfill the obligations of financial planning and enables you to build a fence around your clients.”

“Your value proposition is defined by the range of products and services you offer,” says George Hartman, CEO of Toronto-based Market Logics Inc. “It is your responsibility to offer clients a range of products that meet the requirements of their financial plan.”

Otherwise, he adds, you could be falling short in your role as an advisor.

The task of cross-selling is made easier by the fact that your clients already see you as their trusted advisor, facilitating a potentially shorter sales cycle.

Here are some tips for implementing a successful cross-selling strategy:

> Ensure you have the necessary licenses and training
It sounds obvious, but you must be licensed to sell the products you are interested in offering — such as insurance and mutual funds, says Yates. “It’s the only way you’ll be able to provide the right advice and the right pieces that make up the client’s financial plan.”

Continuously build on your expertise and stay abreast with product developments and industry trends to ensure that you are prepared to offer your clients the best possible advice on making the right choices. Make use of the training and marketing resources offered by product providers.

> Formulate a strategy
A cross-selling strategy involves contacting existing clients to increase your share of wallet.

“Be prepared to discuss a full range of products and services, whether or not your clients might be interested,” Hartman says. “Give them an opportunity to say ‘no.’

Understand that a cross-selling might not be appropriate for all clients.

“Sometimes it does not make sense,” says Neil Taylor, group vice president with responsibility for marketing at Winnipeg-based, Investors Group.

> Harness your resources
Ensure that you have the resources to cross-sell. Draw on the talents of your team, if necessary.

If you specialize in investments and a team member has experience in insurance, introduce that team member to your investment clients.

Make all team members aware of the importance of cross-selling and of your strategic push in this area.

“Leverage the skills of other experts in your network, if required, to complete the planning cycle,” suggests Yates.

One of the biggest concerns of cross-selling is that advisors might lose focus on their core offerings. Harnessing your resources allows you to focus on your area of specialization while benefiting from the expertise of other team members and members of your network.

> Position your practice
“Your ability to cross-sell is an extension of doing a complete financial plan,” says Taylor. Make sure your clients are aware of the products and services you offer. Communicate your value proposition to them through seminars, e-mail, website or newsletters.

Focus on client needs and avoid positioning yourself as looking only to sell product.

“Your goal is to support client needs and be able to make appropriate recommendations,” advises Taylor. “Do not risk being seen as an opportunist.”

IE