Cross-Sell and Up-Sell

In the turbulent world of insurance, where profit margins are shrinking, claim rates and lapse rates are rising, and claims severity continues to worsen, it is essential both to retain current customers and to maximize their lifetime value through effective cross-selling and up-selling.

Despite its importance, many insurance companies struggle to perform effective cross-selling. Customer data that would help identify good candidates for cross-sell and up-sell are often scattered throughout the enterprise, making it impossible to get a clear view of customer preferences and customer behavior. Effective cross-selling, for instance, depends on detailed information about the person being insured – demographics, life style, life stage and especially claims records – information that few insurers can bring together fast enough to take advantage of the opportunity it provides.

Market basket analysis uses historical data on policies held by clients as well as details of active policies, customer demographics, claims propensity and other key variables to predict cross-sell opportunities. For example, you can identify the path certain customers take from motor vehicle insurance to homeowner's insurance to life insurance; and then you can use that knowledge to score these customers and direct marketing efforts at customers who are most likely to follow the same path.

How SAS can help

SAS aids cross-selling and up-selling strategies by letting you profile customers who have purchased numerous policies. You can then assign similar analytics to other customers in order to determine which ones are good candidates for additional product offers and predict "what next?" for individual customers.

With SAS, you can:

• Identify which customers are most likely to buy.
• Determine which products they are most likely to buy next.
• Target the right customers at the right time through the right channel.
• Achieve higher conversion rates for cross-selling/up-selling campaigns.

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