ABA Banking Journal - November 2007 - (Page 45)

Special Advertising Section entire relationship with the bank, rather than merely selling more products. Treat cross-selling as part of the total customer experience The customer needs to be educated about the value that various bank products can provide him or her over their full relationship. Furthermore, the client needs to perceive the value in expanding his relationship with the financial institution, and not feel that the bank is merely attempting to sell him just another product. Educate the Sales Staff and Provide Appropriate Incentives Branch staffers are primarily young, inexperienced, and turn over quickly, so the financial institution must make sure that they are properly trained in the full range of cross-selling methods, tools, and opportunities. They need to understand why the customer will benefit from additional bank products and services—or they won’t be effective sellers. In a pilot of how these skills would impact sales, a nearly 300 percent increase in the number of applications reported at a large UK-based global branch. Moreover, product knowledge must be reinforced through proper incentives. Design the sales incentive program to include cross-sales efforts rather than just sales of single products. Enable cross-selling across all platforms Bank cross-selling campaigns must be spread across all channels. Few customers use the Internet or any other channel exclusively. They might use the Internet on the road, call the contact center from the office, and make a branch visit on a weekend. The financial institution should actively manage each of these channels to maximize the results. Deliver a Consistent Message Across Channels Though there might be “Internet specials” offering a differential price, product details must be identical whether communicated via e-mail, the contact center, or branch staff. Is the message in your loan brochures? Do you also include it your deposit brochures? Are you letting customers know about it at the ATM, through call centers, on posters at the bank, as well as on the Internet? All the touch points must be consistent in communicating the identical offer to customers. Furthermore, the message should be simple enough for the customer to see the benefits. Employ Direct Mail Direct mail is an effective cross-sell channel, particularly when it comes from a financial institution that has a pre-existing relationship with the customer. Customers are more apt to open mail from their primary financial institution than a thirdparty offer. But the direct mail piece needs to streamline the benefits of the bank’s product so that the message is informative, but simple enough to understand, while easily produced. By targeting customers based on different relationships, a bank can lead with the offer most appealing to a particular customer. In conclusion, while “Cross Sell or Die” may sound overly dire, cross-sell should be considered as a banking industry call-to-arms. Remember, it is a bank’s total relationship with the customer that protects its long-term profitability. While the average customer typically has about 2.5 products from a single financial institution, taking a holistic view to crosssell platforms can increase that number significantly—and the more products or services customers purchase from your institution, the less likely they are to take their business across the street to a competitor. MasterCard Advisors, LLC, the professional services arm of MasterCard Worldwide, provides payments-focused consulting, information and outsourcing services to financial institutions and merchants worldwide. With its unparalleled category expertise, deep understanding of customer needs, and successful track record in addressing complex challenges throughout the payments lifecycle, MasterCard Advisors delivers customized end-to-end solutions that maximize the value of clients’ cards and payments businesses. MasterCard Advisors shares the goals and vision of its clients, and works in partnership with them to deliver actionable insights that drive tangible impact and financial gain. For more information, go to www.mastercardadvisors.com. Susan Connors is Global Solutions Leader - Cross Sell Solutions at MasterCard Advisors. She can be reached at susan_connors@mastercard.com www.ababj.com/subscribe.html ABA BANKING JOURNAL/NOVEMBER 2007 45 http://www.mastercardadvisors.com http://www.ababj.com/subscribe.html

Table of Contents Feed for the Digital Edition of ABA Banking Journal - November 2007

ABA Banking Journal - November 2007 Contents Editor’s Column Briefing: Good News for Mortgages Sleight of Mind N.Y. Hiring Bonanza May Be Bane Snapshot: A Look at Held-For-Investment Loan Growth ABA Resources ABA Chairman’s Position “The Moose Bank” Thrives on Manufactured Housing Loans Finding the Middle Way for Your Bank’s Retirement Program Pass the Aspirin Cover Story: Self-Service Steps Up DIY U.K. Style Marketing to Millennials Getting Real With “Gen Wired” Ethnic Marketing: Disinterested Banking Getting Good at Global Sourcing Case in Point Turn Compliance on It's Head Banker’s Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - November 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.