In the past, an independent agent could easily survive as an order taker and service provider. But today’s competitive market requires an entirely different skillset.

Now, an agency must become a top-notch sales organization, reaching out to secure new customers and digging from within to expand existing accounts. The fastest way to grow a business? Sell more products to your current customer base. That’s true whether the product is candy, shirts, jewelry—or insurance.

According to Gartner Inc., 80% of agents’ future profits will come from just 20% of their existing customers. It’s not only easier to sell to existing customers than it is to acquire new ones—it’s also more beneficial to the bottom line. And that means agents should constantly seek out new ways to build customer trust, loyalty and retention if they want to drive business.

Cross-selling, or account rounding, is one of the best ways to diversify your business with minimal risk. When an agency turns to its own customer base to increase sales, it eliminates major customer acquisition expense and begins with the strong foundation of a pre-established relationship. Offering your clients an expanded line of products and services to meet their needs demonstrates a commitment to protecting their well-being and finding the right coverage that fits their budget and lifestyle. Life changes such as sending a child to college, purchasing a new car or nearing retirement may serve as logical timeframes to help clients assess their coverage needs and discuss cross-selling opportunities.

At Travelers, we have found that clients with more than one policy stay an average of two to five extra years with an agency. But research from Axis Consulting reveals that while 99% of insurance advisors feel it is important to cross-sell effectively, only 46% consider themselves successful at it. Many insurance agents are missing an opportunity to grow their business and create long-term clients by selling additional products and services to existing customers.

Purchasing all or several policies through one insurer offers benefits to the consumer as well as the agent. Here are a few to highlight:

• Convenience: We all have too many log-ins to remember and phone numbers in our contact lists. Maintaining all insurance policies under the same umbrella means customers have less to remember. Plus, many insurers give insureds the option to receive a single bill that provides an overview of accounts, as well as a single renewal and payment due date—keeping all relevant information in one place and requiring only one payment. One insurer also means a single point for claims assistance.
• Discounts and reduced premiums: With most carriers, the more policies a customer adds, the more you save.
• Comprehensive coverage: Does a customer’s insurer write both the home and auto policy? You can advise if there are other coverage gaps the insurer could fill, such as boat insurance or umbrella.

Consistent and constant communication is key. Talking to existing customers regularly can help create a constant dialogue and remind customers the insurance carrier is there for valuable advice, not just to close a sale. There’s more to cross-selling than the hard sell—it’s about adding value to the customer relationship.

Agents must learn to effectively relate to their customers on an individual basis. Personalized experiences can go a long way. Consumers that receive general, automated offers are less likely to respond. Know each customer’s individual needs and look for ways he or she can save, or perhaps identify previously unidentified coverage gaps.

Lastly, to remain accountable and motivated, it’s a good idea to set internal goals that help ensure the existing client base is always top of mind. These goals can range from the number of multi-policies sold in one month to the number of existing customer discussions that take place during a specific time period.

Ignoring the fact that a client holds policies with another insurer means leaving dollars on the table—and greater risk of losing that customer. If they purchase other insurance products from someone else, a rival agency has a foot in the door and could ultimately take away the entire business. Going the extra mile for your clients and keeping a watchful eye on their future will play a role in your agency’s future success.

Bill Ramsden is vice president, personal insurance field management at Travelers.