What is Cross-Selling for Banks?
Cross-selling is a common marketing tactic that involves selling a related product to a consumer, thereby doubling the sources of revenue and extending the longevity of the relationship between the consumer and the business. This can be done in a variety of ways, including retargeted marketing, personalized ads, and utilizing data intelligence to your advantage.
You see it in nearly every sector and every industry. Think of combos for fast food – automatically pairing fries and a drink with a sandwich – or bundling tactics from utility companies, which often offer water, internet, refuse, and other services alongside electricity.
In the banking industry, cross-selling looks like offering clients a savings account when they open a checking account, offering homeowner’s insurance alongside a mortgage, or life insurance alongside a retirement plan. This practice can keep customers coming back to the same institution year after year, with the knowledge that they can find whatever additional products and services they need at their primary banking institution.
How is Cross-Selling Different from Upselling?
Cross-selling and upselling are two related marketing tactics, and they are often used in tandem by sales officials. However, the difference lies in the type of products each strategy attempts to sell to clients.
Upselling involves marketers trying to sell clients a higher-priced, higher-quality version of the product they’re intending to buy. The product is usually the same, or at least very similar, to the already desired product.
Cross-selling, by contrast, is a tactic that involves selling two related or connected products to a client who might have only been looking for one. The desired outcome is the same in both practices – not only do they increase the amount of revenue, but they can increase customer satisfaction and improve your reputation in the eyes of your customers.
What Kind of Services Do Banks Cross-Sell?
Depending on your financial institution, your bank may offer a myriad of different products and services for your clients and customers. Below are just a few examples of services that banks can cross-sell to their clientele.
Bank Cross-Selling Guide Table of Contents
What is Cross-Selling?
- How is Cross-Selling Different from Upselling?
- What Kind of Services Do Banks Cross-Sell?
Benefits of Cross-Selling for Banks
- Increased Revenues
- No Acquisition Costs
- Build Brand Loyalty
- Fulfill Your Customers' Needs
Cross-Selling Tips for Banks
- Choose Products/Services That Complement
- Don't Be Pushy with Sales Tactics
- Build Campaigns Around Satisfied Customers
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