Increasing revenue through cross-selling in banks

To generate new business and revenue for a financial institution, reaching out to existing customers is the most effective method.

A new customer acquisition costs about five to ten times as much as retaining an existing one, and repeat customers spend between 50 and 100 times as much as new ones. Marketing to existing customers is the most effective use of marketing funds, so financial marketers should keep this in mind. Here are a few tips on how to do this.

Start with the simplest step

To make a sale to a customer who already owns an account, it is easiest to help them use their existing account. The onboarding program of most financial institutions, for instance, includes an array of sticky services such as debit cards, online banking, mobile banking, direct deposits, bill payments, automatic savings transfers, personal lines of credit, and privacy protection.

Not only do these services increase the usage and retention of customers, but they also contribute to the overall satisfaction of customers. Engagement with a product at its most basic level is key to the growth of a relationship.

Also read: Banks for sale

Do not forget to keep in touch

I once heard a friend saying, “When I opened my first account with my bank, I was truly amazed by how much kindness they showed me, but I was very surprised when I did not hear from them again, except about new fees.” Although some banks have onboarding programs that help them stay in contact with new customers, there are still many banks that require their customers to complete the process on their own. 

A cross-sell program may not be offered to customers unless they expand their relationship with the bank. Banks and credit unions need to keep in contact with their customers in order to cross-sell services to them. Online and mobile banking platforms should use email, direct mail, statement messages, and SMS texts to communicate.Online and mobile banking platforms should use email, direct mail, statement messages, and SMS texts to communicate. It is, however, imperative to tailor the messages.

The best way to increase sales is to upsell

Instead of using product-driven seasonal programs, perhaps customer-focused programs would be preferable. You can identify whether a customer is likely to purchase at least one product or service when they are ready to make a purchase. The characteristics of transaction, ownership, and even behavior of each customer are monitored continuously in most financial institutions. To determine whether a purchase offer is likely at any given time, determine whether the propensity to buy is strong enough.

These opportunities are evaluated monthly in some of the most successful programs, with smaller mailing audiences and much higher response rates. Real-time contextual messaging is used in a variety of ways as well. Financial management services are suggested to customers. The right timing is the key to a positive customer experience.

Employees who interact with customers need to be empowered

Customer contact positions are typically responsible for making sure transactions are processed efficiently and/or providing exceptional customer service. It is important to provide employees with a simple way to talk to customers about opportunities for relationship expansion when they interact with hundreds or thousands of customers per year.

Many financial institutions provide their employees with computer screens that display prompts alerting them to recent customer communications, potential products that the customer may find interesting, and possible special offers related to the transaction or service they are conducting.

Request referrals

Referrals (and maybe even incentives) are an easy way to generate new business and increase customer loyalty. It is possible to improve the loyalty of current business and retail clients by offering referral incentives (and possibly new business as well).

Small businesses and bank-at-work customers score particularly high in terms of satisfaction. Offering incentives to current customers is an alternative to offering incentives to prospective customers.

Both online and offline channels can be utilized

Don’t assume that your customers will comprehend everything you offer them or will absorb the information in the same way, no matter how you communicate. Make sure you are always in constant contact with your customers, that you understand what their needs are, and that you thank them for their loyalty.

A robust multichannel marketing strategy reaches out to your current customers directly through as many channels as possible. In this category, you’ll find a variety of methods, including inbound and outbound calls, direct mail, email, statement inserts, banner ads on your website, and ATM messaging. Be sure to use your customers’ mobile devices and online banking sites.

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