Monday, 21 September 2015 - 12:13
Sell it the Right Way! The importance of Cross selling and Up-selling for Banks and Non Bank financial institutions.
Banks and Financial institutions that offer more than one product or service can promote to customers different products and services they deliver based on need, behavior or demography. This type of cross selling can be a highly effective tool for growing business, acquiring new to bank clients and enhance customer life time value by encouraging multiple product holdings by an individual customer.
When you cross-sell, you offer the customer a product or service related to whatever they are already buying.
It can be as simple as promoting a credit card and internet banking to a savings or current account customer. Up-selling enables increasing the quantum placed on an existing product or additional products. Both methods of encouraging clients to use additional services and invest a little more can dramatically boost your sales, grow revenue and help achieve set objectives.
If you worry about irritating customers with too many sales calls, SMS, e-mailers (CRM efforts) to invest more or open a new account, don’t. Surveys show that most customers appreciate being told about additional products or services that might better meet their needs or about new services that were not offered in the past which creates value in the present shows that the bank is in a way demonstrating that you are aware of their needs and that you care about their satisfaction and overall experience.
How can Banks and NBFIs improve and create opportunities for cross-selling and up-selling?
1. Stay relevant -
If you overload customers with too many unrelated cross-selling suggestions, you may blow it. Offering Children’s Savings accounts to parents with kids below 15 (like the Seylan Tikiri account) is certainly a good fit. But if your attempts to cross-sell are not closely related to the original purchase, they are far less likely to succeed.
2. Post expert recommendations -
One way to facilitate successful cross-selling and up-selling is to state specific recommendations from professionals, experts or other customers on social media channels,, PR, testimonials , online opinion.
3. Train employees in cross-selling, up-selling techniques -
The approach must be built around serving the customer, not just selling more products. For example, you might describe how the additional products or services would complement the original purchase and further solve the customer’s problem.
4. Timing is important -
Cross-selling and up-selling can occur at different times, depending on the products and services you are offering. In some cases by advising client of another scheme when there is a special promotion of a product or service, chances of convincing and a high string sale.
5. Try product or service bundles -
Bundling has long been used as a way to entice prospective or existing customers to buy not just a single product or service , but an entire group of items that go together. Offering a price break on package deals will help close the sale.
6. Have an effective customer relationship system - (Combination of Social CRM) integrated with your core banking system to identify changing customer behavior, needs and extract timely information in order to promote the required product or service to target groups.
7. Provide staff at various omnichannel touch points a 360º view of the customer -
indicating the current products and services used what could be sold, purchase patterns, future potential, predicting what next etc.
8. Have the corporate website interfaced -
with Web.3.0 software, mobile responsive and optimized for search engines which can drive exceptional customer experience along with social media initiatives at multiple touch points which can support multiple channels to target prospects for cross selling or up selling via inbound marketing.
9. Leverage the cross-selling potential of your website -
Position cross-sell and up-sell items throughout your site in places where they can help educate visitors on the depth and variety of what your business offers. Try mixing and matching different products and services to see what works best.
The key to successful cross-selling and up-selling is to focus your efforts on meeting the customer’s needs, rather than simply pushing more products and services. This is one area of startup marketing where you may need to do a little experimentation in order to find just the right balance, use of right business intelligence and customer relationship management tools.
You need to make cross selling and up-selling a key component of your list of sales techniques. Further staff should be sales oriented and speak to clients with a right attitude and should posses’ adequate knowledge on products, services, communication skills and be motivated to convert customers to advocates.
Tips for effective Cross-selling and Up-selling
1) Make sure your customers know what other products and services you provide.
If you don't tell them you have a corresponding or alternative product or service, you can't expect them to know.
2) Suggest only relevant products or services that your customer might actually need or appreciate.
There is no long-term value in selling someone something they don't really need as they're less likely to buy from you again.
3) Recommend the product at the right time.
Cross-selling is usually best to do before checkout to maximize on the potential for impulse buys, while it is better to up-sell earlier in the sales process before your customer has made up their mind.
4) Up-sells and cross-sells should be recommendations only –
don't continue to push products or services on your customers if they have said they don't want them.
5) Make sure all employees know your range well so that they can advise customers on how you can best help them and which products go together.
6) Target your clients;
Estimate which clients are suitable candidates for the cross-selling process, create clients' behavior profiles and predictive modeling using BI/CRM tools.
7) Provide your clients with good customer service.
This will help repeat sales, when you have higher chances of cross-selling and especially up-selling.
8) Inform your clients correct
about the opportunity to buy an additional product without forcing them to wonder or search.
9) Keep track of refusals to accept cross-selling or up-selling offers and lost business reports in order to make follow up calls or visits.
Benefits of Cross-Selling and Up-Selling for banks and Non bank financial institutions.
A. Enhances customer experience with the organization.
B. Enables acquiring of new to bank customers and retention of existing customers.
C. Enables clients to form opinions and introduce new clients to the bank.
D. Improves your customer base and help meet goals and objectives.
E. Encourages clients to use multiple products and services and prevent switching to competitor banks.
F. Assist in developing new products and value propositions through constant engagement.
G. Enjoy customer life time value(customer longevity), reduce acquiring cost .
Article By: Godfrey Dinesh Jebamani