1. 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.
2. PREPARE TO BE SOLD. 2 What is cross selling? Where are the opportunities in our industry? Why cross sell? Whos open to a cross sell recommendation? Legal & General America For internal use only. Not for use with the public.
3. 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.
4. CROSS BUSINESS SERVICE SELLING. 4 Manufacturer Intermediary Distribution Consumer Segment Legal & General America For internal use only. Not for use with the public.
5. 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 ClientsBGAs MGAs Carrier Legal & General America For internal use only. Not for use with the public.
6. 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 (AnnualizedPremium)Billions 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 6Legal & General America For internal use only. Not for use with the public.
7. Source: US DEMOGRAPHIC OPPORTUNITIES. 7Legal & General America For internal use only. Not for use with the public.
8. 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
9. 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.
10. WHY CROSS SELL? Retain clients? ROI? Client satisfaction? Something else? 10Legal & General America For internal use only. Not for use with the public.
11. 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.
12. Legal & General America For internal use only. Not for use with the public. WHOS 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?
13. 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.
14. 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: LIMRAs 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; LIMRAs LGBT Financial Experience, August 2012; LIMRAs Marketing to Chinese Americans and Asian Americans 2003: she economy.com Legal & General America For internal use only. Not for use with the public.
15. 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 shell relate.
16. 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 shes appreciated (Mothers day). Ask if shed like to talk about family coverage. Within the 3rd Qtr Try a newsletter thats purely educational. Within the 4th Qtr Shes 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
17. QUESTIONS? 17 Thank you. Legal & General America For internal use only. Not for use with the public.
18. 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.