3 cross selling of banking products and financial services

CROSS SELLING OF BANKING PRODUCTS & FINANCIAL SERVICES -by Gazal Badlani Ashok Sarkar PGDM 2010-12 Trimester – Introduction • Selling of banks products/services to an already existing customer • Cross-selling stands for being able to offer to the existing bank customers, some additional banking products, with a view to expand banking business, reduce the per customer cost of operations and provide more satisfaction and value to the customer and higher per customer earning Scope of cross selling • Liability side • Asset side Examples of cross selling Credit insurance Life insurance enhancements to traditional mortgages Auto and homeowners insurance Medical savings accounts Asset management accounts Importance • Research statistics demonstrate that the average customer uses less than two services from any one depository institution • Seventy percent of all customers share their banking needs with more than one financial institution Tools Enablement Ways: • Phone banking • Web • Walk in Tools: • • • • CRM techniques Referral tracking Sales call tracking MIS systems (activity management, information) - steps Marketing facets times expense  Strong commitment to customer care at all levels  Promises made must be realistic and achievable  Intimate knowledge of the customer leads to excellent customer service  Continuous feed back from the customers steps approach Cross selling & Relationship Banking • • • • The emphasis here is on viewing the customer as a long term business relationship Banks plan to meet the total banking requirement of the customers and expect repeat business Relationship is based on full knowledge about the customer needs and causing total customer satisfaction by providing services that exceeds his expectation An understanding of exactly what the customer is buying in critical The basic utility he derives from the product is the nucleus of core in the center, surrounded by services of both tangible and intangible attributes steps model of relationship banking step model approach step model approach On super - ordinate goal: Draw the vision and mission statements around the customer value Strategy - Draw a strategy of market segmentation to focus on a customer On structure - Restructure the organization as a cross functional and process oriented one System - Design a service delivery system on quality and coordination On skill - Cultivate skill as cutting edge On style - Devise a suitable appraisal system and reinforce it through top management On staff - Devise policies which empower staff and encourage open communication steps model of personal selling Prospecting & qualifying Pre-approach (deciding the best approach) Approach (ability to observe and listen) Presentation Handling objections Closing After sales service and follow up Bundling Cross selling process Buying cycle NPTB modeling The challenge of cross selling is to know which product to sell to which customer NPTB modeling A next product to buy modeling promises to enhance the effectiveness of cross selling by specifying which product to sell to which customer NPTB approach Compiling data Selecting statistical method Estimation and evaluation Scoring and targeting approach Benefits Develop a true dialogue with each customer Knowing the ins and outs of the product offerings Propose appropriate solutions Capture data and share it across enterprise Create incentives around effective cross selling Recognize all opportunities for cross selling Bottom line & Implementation The biggest difference between "merely effective" and "high performing" cross-selling in financial services is the degree to which the high performers invest the time to really understand customers' needs Problems • The banker as a consultant • Who owns the client • Dislodging a satisfied client Thank You ...Introduction • Selling of banks products/ services to an already existing customer • Cross- selling stands for being able to offer to the existing bank customers, some additional banking products, with... view to expand banking business, reduce the per customer cost of operations and provide more satisfaction and value to the customer and higher per customer earning Scope of cross selling • Liability... to observe and listen) Presentation Handling objections Closing After sales service and follow up Bundling Cross selling process Buying cycle NPTB modeling The challenge of cross selling is to