Cross-selling is a “one-stop-shop” strategy aimed at providing your clients with a range of products that meets their financial planning needs — as opposed to providing them with a single type of product, such as investment funds or insurance.

“Cross-selling gives you more things to talk about with your clients, which can lead to stronger relationships, greater loyalty and increased stickiness,” says George Hartman, CEO of Toronto-based Market Logics Inc.

Adds Raymond Yates, financial advisor and senior partner with Save Right Financial Inc. in Mississauga, Ont.: “It gives you greater control over the client relationship.” That is not only beneficial to you but also the client.

Cross-selling to your existing clients can lower your average cost and increase practice profitability. It lowers incremental costs for each additional product while also lowering your marketing expenses. That ultimately increases practice profitability.

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

> Provide comprehensive planning
To create a cross-selling opportunity with a client, discuss his or her life plan as well as their financial plan, says Neil Taylor, group vice president with responsibility for marketing with Winnipeg-based Investors Group Inc. “This approach naturally leads to a discussion of an appropriate mix of products,” he says, “and you could end up selling them those products.”

> Have regular client reviews
Frequent meetings with clients will present the opportunity to better understand what’s important to them, Taylor says. Clients’ personal circumstances will call for an appropriate mix of products and services, providing you with cross-selling opportunities. Life events — such as marriage or the birth of a child — can require a change in the mix of products, offering additional cross-selling opportunities.

> Make every client meeting count
Look for cross-selling opportunities at every client meeting. Systematically walk your clients through the full range of products and services you offer, Hartman suggests. Show them how your offerings fit their needs. To maintain their interest and leave the door open for cross-selling, Hartman adds, introduce a new product or service and say: “Next time we meet, we should discuss this.”

> Explain the benefits of consolidation
If you are not currently serving all of your client’s needs, explain the benefits of consolidating all of his or her business with you. Those benefits include potentially lower fees, simplified reporting, time efficiency and, most important, better advice.

“People want to consolidate all their holdings with one organization,” Taylor says.

> Don’t sell products
Do not attempt to cross-sell on the basis of selling products, Taylor says. “Your goal is to support the needs of your clients and make appropriate recommendations to fulfill those needs,” he says.

Rather than looking at a single product in isolation, always look at a client’s overall plan.

IE