Effective Cross-Selling and Upselling: The Holy Grail of the Banking Business?
Eric Jacobsen 11000070PK firstname.lastname@example.org | | Tags:  business-rules banking cross-selling business-process-improvem... decision-support decision-management business-rule-management upselling
0 Comments | 6,952 Visits
In a word, yes. I think it’s the holy grail. Or pretty close to it. Providing your customers with better products and services at a price that is competitive and profitable for your shareholders is the holy grail of business. If your bank can create deeper customer relationships based upon this mutual trust – “you deliver what we need (want)” -- and you can do it quarter after quarter, year after year, then your bank could live a long healthy life. Your customers will buy more products and rave about you to friends creating a perpetual money-making machine.
But is it really that simple? Well, it never is. One problem is that your competitors aren’t sitting still, letting you ride rough shod over them. They’re trying to interrupt your plans with theirs. And governments are always butting in with new regulations, changing industry rules and trying to regulate fees. And fickle customers can be counted on to change their minds about what they want and how they want it delivered. Effective cross-selling and upselling requires a combination of accurate and real-time product pricing, customer intelligence and channel execution to win and a lot of banks fail when it comes to execution – putting the right offer in front of the right customer at the right price, time and place.
How to find the holy grail of effective cross-selling and upselling.
Let’s zoom in: How decision automation can support effective cross-selling and up-selling.
Operational decision making is a multistage process – one that can be completely or partially automated. In the case of cross-selling or up-selling in banking it generally works like this (refer to the graphic below):
So, in the end, this kind of intelligent decision automation is able to guarantee that the products recommended are the best match for that customer, are within the customer purchasing power, and that the customer is 100% eligible for those products.
Holy grail or holy cow? I’ve seen banks more than double the number of cross-sell offers at each
customer interaction and increase the acceptance rate of these offers by a
factor of ten. Maybe it’s not the holy grail, but it’s holy cow! if you ask me.
To learn more, check out this webinar from Bank Systems & Technology and IBM -- Recover Revenue Lost to Regulatory Reform by Increasing Cross-Sell Acceptance. It features Brad Strothkamp, a Principal Analyst at Forrester.