January 29, 2013
How Wells Fargo Is Using Networking to Carve Its Niche in the Insurance Industry
As consumers continue to take advantage of online product purchases, traditional business models face challenges to keep pace with growing consumer wants. The online marketplace is a market segment that is definitely here for the long haul. According to the U.S. Census Bureau as of 2010, online sales growth is over two times higher than regular U.S. retail sales growth for the past 3 quarters during that period. One industry that has specifically benefited from the explosion of the e-commerce phenomenon is that of financial services. Wells Fargo Bank has over 70 million customers worldwide; a consumer base that had largely gone untapped until recently for its’ insurance division. Using first-hand knowledge I will illustrate how Wells Fargo has utilized a unique business approach to transforming the selling of insurance through online marketplace by capitalizing off its’ existing bank customer database. They are accomplishing this by reducing overhead and unnecessary costs, sharing customer information across business lines, and using brand recognition to reach an ever growing consumer pool all through innovative networking and telecommunications strategy.
One of the most difficult tasks presented to any salesmen is finding enough qualified potential customers to pitch to. Wells Fargo has solved this problem by prospecting its large banking customer base to find potential client’s for its business partners. First, local bankers are able to see how many different Wells Fargo products a customer has to gauge their brand loyalty. The bankers then build a profile that they send over to the insurance department that lists the customer’s asset level, insurance products they are interested in, as well as their preferred contact information. Thus far, only 1 out of every 10 Wells Fargo banking...