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Posted by Brad Strothkamp on October 24, 2011
A result of the recent and continuing rash of government regulations is a renewed desire on the part of banks and credit unions to drive new sources of revenue and profitability. One outcome of drive for revenue is a renewed interest in cross-selling to deepen customer relationships.
Cross-Sell Strategy Is Not New
Cross-selling as a strategy is nothing new. Wells Fargo has been a champion of the concept for decades. Cross sell efforts in general have been marginally successful, with the average bank owning just 2.1 financial products out of nearly seven owned per household. The struggles of cross-selling to customers are two-fold. On the consumer side, there is a natural inclination that one provider cannot have the best product in all situations. On the bank side, organizational silos and a general failure to appreciate the impact of effective cross-selling on metrics like customer retention hinder success.
The Elements Of Effective Cross-Selling
So what makes for successful cross-selling? A well-defined strategy is an important but relatively easy part of the question. An analysis of the problem shows that execution is what separates success from also-rans. Effective cross-sell execution requires four key elements: