Create a cross-selling strategy

“[Cross-selling] benefits both you and your clients,” says Lou D’Aversa, senior financial consultant in Toronto with Ottawa-based MD Management Ltd.

A cross-selling strategy allows you to serve your clients better by offering them a range of products that may meet the requirements of their financial plans, says George Hartman, managing partner with Accretive Advisor Inc. in Toronto. Failure to offer clients solutions to fulfil their needs, he says, could mean that you’re falling short in your role as a financial advisor.

Making more products available to all your clients not only improves profitability; it also can prevent clients from becoming targets of competitors who can sell your clients products you do not offer.

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

Jonathan Sceeles, financial advisor with Edward Jones in Toronto, points out that cross-selling enhances your bottom line: “Revenue increases significantly, the broader your product suite.”

And offering other products to existing clients can lower your marketing costs and increase profitability, simply because serving existing clients costs less than finding new clients.

Steps you can take to set up a cross-selling program include:

– Get the necessary licences

Before you can embark on a cross-selling strategy, you must obtain the training and the licences to sell the various products, such as life insurance products and mutual funds, that you want to offer. Doing so, Sceeles says, will equip you to provide the right advice and the components of an effective financial plan.

If you are an insurance advisor, you might consider obtaining a mutual fund licence or a securities licence.

“Sometimes,” Sceeles notes, “licensing requirements are dictated by your firm.”

– Inform your clients

Make sure your clients are aware of the full range of products and services you offer, D’Aversa says, even if they are not interested in these products currently.

Tell your clients, at the beginning of your relationship, how you will be able to help them, then keep reminding them of what you can provide to fulfil their needs.

Clients expect you to offer as broad a range of products as possible, Sceeles says: “You want to leave the door open for future conversations.”

– Maintain your knowledge

Sceeles advises keeping abreast of new products and financial services trends so that you are always in a position to discuss new ideas with clients and offer them the best possible advice. Make use of the training and marketing resources offered by product providers.

Today’s media-savvy clients are constantly reading up on financial trends, Sceeles says. You would not want to be taken by surprise by a question.

– Leverage your resources

Ensure that you have the resources to cross-sell. Draw on the capabilities of your team. Make sure your team members are aware of both the importance of cross-selling and your strategic push in this area.

In some cases, D’Aversa says, it might be beneficial to partner with a team member whose expertise complements yours in order to introduce a client to another product category.

– Make every client meeting count

Every meeting you hold with a client – not just your first meeting – should be structured as a “discovery meeting,” D’Aversa says, in which you ask questions to find out as much about that client as you can. Ask about changes in the client’s life and his or her financial goals.

“Discuss the value of your financial planning process at each encounter,” D’Aversa adds.

Clients’ circumstances change over time, Sceeles notes. When they get married, experience a divorce, have children, change jobs or experience the death of a parent, these changes will have an effect on their long- and short-term goals. That, he says, makes it necessary to revisit “know your client” documentation. These changes may present cross-selling opportunities.

Sceeles recommends keeping a checklist of issues you would like to discuss with each client. You might even discover the need for a new product during an informal conversation about a client’s situation.

– Hold regular client reviews

Meeting with your clients frequently, Yates says, enables you to understand their changing circumstances and needs better.

Sceeles suggests spreading appointments with each client throughout the year to get more in-depth, productive information.

“Never assume,” he adds, “[that] you know everything about your clients that you need to know.”

– Don’t be a “sales” person

Avoid focusing on the sale of products, Sceeles says. Instead, focus on each client’s personal circumstances.

“Often,” he says, “clients are not aware that they have a need.”

Your client might not be interested in a particular product at a given time for any of a number of reasons. Perhaps it is an insurance product the client does not need at the moment. But you can “plant the seed,” Sceeles adds, for a discussion at a future meeting regarding a particular product that suits that client’s needs.

Hartman recommends saying to clients: “Next time we meet, we should discuss this topic.”

This strategy opens the door to discussions that could lead to cross-selling opportunities that benefit both you and your clients.

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