Cross-Selling: a Valuable Marketing Tool
THE BENEFITS OF CROSS-SELLING AS A MARKETING TOOL
Today’s constantly changing competitive marketplace requires innovative and aggressive methods to acquaint, promote and sell services to new and existing customers. Cross-selling is a win-win for both customers and companies. It needs to be fully integrated into the culture. In a company that has embraced cross-selling, the goal is to successfully identify the needs of the customer and then match those needs with the right product. It is the most effective way to introduce and promote products to your customer base.
We see this at grocery stores that entice customers with coupon promotions, internet and cable companies include bundling services at a very attractive rate, a drugstore offers discounted flu shots with membership to their prescription program and the list goes on. Banks and financial institutions have found this method especially useful in customer growth and retention. Brian Townley, Senior Vice President of The National Banks of Central Texas, says, “The results we found after training and coaching our bankers on how to succeed at engaging the customer, discovering their needs and offering products that were the right match are impressive. Cross-selling is the most effective method of marketing for our bank.”
Townley’s new book, “Inspiring Leadership – Unleashing Motivation in the Workplace”, focuses on his experience as a Professional Development Specialist. His book elaborates on the benefits of making growth at his bank a team sport.
“The goal of cross selling in financial institutions is to introduce the customer to new products and services and for the company to retain loyalty. Customers may have heard of these services but they will still need to be introduced, educated or informed of the benefits the services provide. Whether at the new accounts desk or conducting a transaction at the teller window, an opportunity presents itself for the customer to learn and benefit from new products and services,” said Townley.
Cross-selling is a perfect way for financial institutions to market to a customer base that conducts business differently than retail stores or service companies. Bank customers are very diverse and they conduct their business in a myriad of ways. Some go inside the branch; others prefer the convenience of the drive-through. Electronic banking continues to grow as a preferred way to receive paychecks and monthly statements, review accounts and make payments.
Wherever a product or service is sold, cross-selling can be utilized effectively. To successfully sell banking products, call center personnel and branch employees must continuously strive to develop a trusting relationship with the customer.
Most banks prominently display brochures describing new or existing products. The best idea to maximize those tools is to get the product benefit and printed media in the customer’s hands. All customer contact people have the opportunity and responsibility to personally deliver new product information to the customers’ attention.
Perhaps there is a promotion that needs to be communicated. For example, opening a new savings account could earn a customer valuable points he or she could cash in for prizes or points in the future. Maybe by frequently using a debit card a client would earn cash back rewards.
On all fronts, cultivating a trusting relationship with the customer is the first and most important step in introducing options. This is accomplished by making products accessible and understandable. It is most easily attainable on the frontline. Tellers, as well as new account representatives, have an exclusive opportunity to meet customers one-on-one, work on associating faces with names, building rapport and getting to know something about their personal situations. This opens the door to suggesting options and opportunities that will enhance a growing relationship.
Townley claims, “With cross-selling, the bank has a better opportunity to service the customer. When a customer comes in with a problem, nine times out of 10 a solution to their issue can include an additional product or service.” He cited an example of a customer mentioning to a teller that he needed to make expensive repairs to his aging car. The teller’s response of empathy included recommending the customer meet with a personal banker about getting a car loan for a newer and more reliable automobile. The teller’s efforts resulted in a happy customer and a new loan on the books.
The drive-through tellers have the same opportunities as those in the lobby, but the challenges are different. They offer the same greeting but don’t always see the customer. Often times the drive-through customer is in a hurry and doesn’t want to discuss details of a promotion. The teller at this point is sensitive to the needs of the customers but can include brochures with receipts and extend an invitation to the customer to meet with a representative on his/her next visit.
Research shows that the more engaged the customer is in electronic banking the better. After a couple of months using a bill pay product the customer is too invested to be swayed by a competitor’s offer of cash or gifts to open an account. Banks that target selling online banking products to customers are finding the customer stays put where they have direct deposit, automatic debits and pre-scheduled bill payments.
Selling to the online customer is a unique but increasingly lucrative way to promote products. Many online banking customers, after signing in to their accounts, are greeted with promotional enhancements before their account information is displayed. Some banks leave messages on the online screen for the customer to view. Another way to promote products to online customers is through email messages or an electronic newsletter. This type of selling is beneficial in that the account holder has time to peruse the information.
The banking industry is constantly changing to meet the needs of the customer and to keep in step with the times. Cross-selling is the key to ensuring the customer is tapping into what they need to maximize their banking experience.