Business outcomes - The complete package

It is this need that, over the last couple of years, has seen brokers warm to the idea of being a provider of holistic financial solutions to their clients, rather than just loan providers. That’s where cross-selling comes in.

Today, most brokers offer their customers a choice of products beyond the traditional home loan, ranging from credit cards and savings accounts to mortgage protection, risk, and home and contents insurance.

And while cross-selling has direct bottom line benefits, its longer-term value lies in its ability to help brokers form closer and deeper relationships with their clients.

“Cross-selling helps your customers become stickier,” says Niche Lending director Moshe Moses, whose cross-sell product suite ranges from credit cards to life insurance.

“You can be a one-stop shop for your customers, so you know they are not going to want or need to go elsewhere.”

A PERSONAL TOUCH

Angel Finance director Susan Baird says her customers appreciate the fact that she is able to personally meet each of their financial and insurance needs.

“Customers welcome the holistic approach to their financial needs that I offer – which in turn strengthens the relationship between my customer and I,” says Ms Baird.

Mr Moses says while some brokers may be overwhelmed by the prospect of cross-selling, it’s actually a simple process once the customer’s needs are properly identified and understood.

“All brokers should complete an accurate and concise needs analysis for their customer. Once that is completed, they not only know but also understand what products they can and should mention in their presentation,” says Mr Moses, adding that once brokers become accustomed to completing a thorough needs analysis, cross-selling products becomes second nature.

Jeremy Fisher, managing director of 1st Street Home Loans, agrees that understanding a customer’s needs is the key to successful cross-selling.

“The hardest part is analysing a customer’s needs, but brokers are in the wonderful position that they have already had to do that in order to get the wheels of the core product – the home loan – in motion,” he says.

Mr Fisher says it’s also important not to push the cross-selling barrow too hard.

“It is all about the soft sell,” he says. “At the end of the day, I wouldn’t care if my customer decided against the extra products or income protection – as long as they are happy and feel as though they have been taken care of.”

Ms Baird says while home and contents insurance has proved particularly popular with her customers, other products are starting to attract their attention.

“While traditionally home and contents insurance has been the most popular, I think we are starting to see a resurgence of customers looking for mortgage protection insurance,” says Ms Baird.

For Mr Fisher, who has a strong relationship with the Commonwealth Bank of Australia (CBA), income protection and home and contents insurance are the two most popular products. He refers the majority of his clients to the bank for additional products but “I am able to stipulate exactly what those products should be,” he says.

“I strictly prohibit CBA from offering my customers products that are going to put them in further debt. They are only allowed to offer products that can assist [my clients] in the future,” he says, with home and contents insurance, life insurance and income protection insurance making the list.

Ms Baird says her top tip for brokers looking to branch out into cross-selling is to “assess the customer’s needs for additional products, integrate the products into your loan application process and supply the customer with the product pamphlets and brochures”.

Mr Fisher agrees, while also reinforcing the importance of brokers avoiding the hard sell.

“At the end of the day, credit cards and home and contents insurance are not part of a broker’s core offering – so don’t try and make it part of your offering,” says Mr Fisher. But he says cross-selling is something brokers should definitely try. “Once a broker takes the leap into cross-selling they will never look back.”