Encyclopedia of Marketing. Peculiarities of cross selling in banks What is cross selling in insurance

Cross-selling of banking products began to rapidly gain momentum after the crisis times of 2008-2009. Then, without exception, financial institutions tightened lending conditions in order to avoid significant delays. And as a result, they themselves found themselves at a disadvantage, feeling a shortage of customers. It was then that the banks decided to compensate for the lack of demand with such additional sales. What it is?

Cross-selling banking products. What it is?

Cross-selling (translated from English as "cross-selling" - cross-selling) is the offer by the bank to the client of additional products, including services when registering any banking product. In fact, this is the same “load” trade (for those who remember ...), which was common in Soviet times, when something sensible could be bought along with a completely unnecessary thing - this is how buyers received a long-awaited scarce product, and stores got rid of unnecessary ballast, while receiving additional revenue. In another way, this process is also called cross-selling. You don't have to look far for an example - this is at least "voluntary-compulsory" insurance in addition to consumer credit.

Cross-products are mostly offered on preferential terms. If the client does the same not as a load, but as an independent product, its costs will be higher.

The sale of banking services under a cross scheme is carried out in relation to new and existing customers.

Types of cross selling

All cross-selling can be divided into 2 types:

1. External. To implement such a product or service, the bank attracts partners. Buying something from one, the customer automatically enjoys benefits from another. An example would be "Thank you" bonuses from Sberbank or a loyalty program (bonus) from any other bank. By activating the service, you can enjoy privileges and discounts in partner stores. Or, for example, when you insure real estate when applying for a mortgage, this will also be a cross-sale on the part of the bank.

2. Internal. In this case, the bank sells only its own services and products. The most common example is the issuance of a credit card when issuing a payroll, which is actively practiced in the same Sberbank.

Cross-selling can also be classified according to time. This gradation includes:

1. One-time offers. In this case, the client can use the special offer only at the time of registration of the main product. This is the same credit card in addition to a debit card or a consumer loan.

2. Promotions with an expiration date. Here, the consumer of banking services can take advantage of the possibility of preferential registration of a cross-product for a certain time period. For example, by issuing a debit card, he can take out a loan on preferential terms within a month. Another example is Sberbank's personal pre-approved credit card offers for existing customers.

Customer Benefit

On the one hand, cross-selling is often associated with imposition. The bank needs to sell an additional service, for which, for sure, the plan is set. And such a situation can not be called profitable.

On the other hand, there are still advantages in this situation. In any case, you will purchase the services as part of the promotion, which means that the conditions will be preferential. This time. If you look closely at the proposed product, it may turn out that it is not so bad. This is two.

Or maybe it will come in handy sometime later? So why not apply now when you can save?

For a bank, any client is a temporary phenomenon. Especially if he uses only one service. At any time, a person can change the servicing bank simply because another institution has offered more attractive conditions. Cross-selling is one of the ways to avoid such “transit passengers” and tie the client to you more tightly. Only now, when purchasing additional services, we need to be on the alert, no matter how trite it may sound. And then it turns out later that you need this service just as much as the Pope of Rome has a TRP badge, or like a grandmother in years has a Sberbank credit card ...

From this article you will learn:

• What is cross selling
• What are the types of cross-selling?
• What to do to increase cross-selling
• How to cross-sell banking products
• Why Cross Selling Doesn't Work When You Did It Right

The cross-selling method has successfully taken root in the Russian trade. It cannot be denied that in some sense he has always been here. However, as a full-fledged trading strategy with its own theoretical justification, it came to us not so long ago. It so happened that most Western borrowings take root in our country not entirely, but in parts. The same thing happened with cross-selling. A typical scheme of work of an ordinary store in our country: an intrusive service, the essence of which is that the paid customer is not released, trying to impose promotional or simply incredibly useful goods. Of course, this example is a pure illustration of the illiterate use of cross-selling. Next, let's talk about how this method should actually be implemented.

What does cross selling look like?

Cross-selling is based on the offer of additional (in addition to the main) goods or services of the company. Their main goal is to sell large volumes based on the relationship formed with the client.

This type of sale was widely used by ancient traders in the Eastern bazaars. Today, it is actively used, for example, by the oil and gas giant Royal Dutch Shell, better known by the short name "Shell". In a network of gas stations, this company sells things that are completely unrelated to oil. So, there you can find food and everyday goods.

How to find out the hidden needs of the client? Find out in the training program

As the story goes, it all started when one cunning franchise user Kentucky Fried Chicken(KFC) opened a restaurant at a Shell gas station. Quite quickly, he became popular among customers, which inspired the oil corporation to introduce cross-selling. In the end, the combination of food and fuel for cars proved so successful that the concept was carried over to other aspects of Shell's business.

What the advantages of this method:

• Any product sold plays to increase turnover. When they grow, so does the profit of the company.
• Since the goods are offered to already attracted customers, no additional costs are required for studying the market, luring buyers.
• Cross-selling has a positive effect on customer loyalty, his inclination to apply to this particular company, which is always an additional support and safety cushion for any company.
• Positive customers and additional income create favorable conditions for innovation.
• The method increases the level of sales without competition on price with other companies.
• If customers have developed a trusting relationship with the company, then they are ready to return to it again and again. While the new company will be viewed rather warily. Therefore, when launching new products, it is important that they meet the demands, that is, that people do not abandon the original product. This requires careful planning and maintenance of the company's product line.

What are the varieties of cross-selling

When a cross-program (cross) concerns only one person and at the same time goods of specific directions are sold, there are internal cross selling. Often such cross-selling is defined as complex, which is more correct.

But if several commercial structures have come together for joint sales, then it is worth talking about external cross-selling. With this scenario, companies tell a potential buyer about a partner's product without requiring additional payment for advertising.

Basically, cross-selling is implemented if the company operates in the target market. For a firm working for such a group, it is required to sell the maximum number of different goods to one consumer. Whereas for a mass market business, it is more important to sell as much of a certain product as possible to a large number of buyers.

Cross selling products step by step

Step 1. Analyze the current state of affairs. It is important to formulate the benefits that the consumer will receive and the advantages over competitors that the proposed products have.

Step 2 Select all possible combinations of offers with the same target audience. Then rethink the existing consumer benefits. In this case, the center-periphery strategy will be useful. The company chooses for itself the core of sales, that is, its most relevant product at the moment. Obviously, he can attract buyers and set them up for long-term cooperation. This creates a positive impression of the business as such, now additional sales will go much easier. It is better to try to sell peripheral products in addition to the main one. When using the cross-selling method, they will provide a good profit due to mass sales.

Step 3 If necessary, develop a system of discounts and bonuses.

Step 4 Appoint responsible for complex sales and conduct team training. Do not skip this stage and do not neglect it - it is on it that the entire subsequent work technology is determined. The fact is that the sales system is formed exclusively individually for each business, based on its structure, product features and other characteristics. The main thing is that there should be those who are responsible for cross-selling.

Step 5 Form a system for monitoring the effectiveness of the applied method. The types of goods and their combinations, transaction analytics, profitability by products, customers, business areas should be taken into account.

Find out how to get the most out of your staff with the least amount of training effort

Step 7 Think over the management system: performance control, performance evaluation, technology adjustment, etc.

10 Methods to Increase Cross Selling

Method 1. Weighted approach

It is worth taking an example from supermarkets and kiosks all over the world: it is not for nothing that they always have gum, chocolate bars and magazines on their shelves. An impulse desire is also important, since any queue always stimulates an additional purchase. Try to choose the cheapest products as an addition to the top products. To create a similar effect on your Internet resource, read the next paragraph.

Method 2. Product Supplement

See if you've managed to create a range of products that complement each other. For example, if you are dealing with antique furniture, take on chandeliers, figurines, etc. So, almost all sites for travelers, in addition to flights, will offer hotels, various types of insurance, and transport rental.

Starting such a service is easy. You just need to find out from customers if they need an additional item.

Your cross-sell offer must be significantly cheaper than the original product. That is, it does not require much thought before buying. The more complex the chosen product and the way it is explained to the customer, the less easy your cross-selling will be.

Are you sure that your employees have a good knowledge of all products, including related products? It is necessary to properly teach them how to sell according to our method.

According to the largest online auctions, as much as 35% of all annual income was generated through cross-selling. "Customers who chose this item also bought 'and'."

You'll replicate this effect on your site with recommendation automation—the sales giants are doing the same. Or you can manually upload the items in the appropriate places on your site under the "Also bought" column in the heading. This method is much cheaper, but takes more time. Use your sales data to show that products were bought several at a time.

This technique will be useful when dealing with customers with similar tastes and an adjacent list of recent purchases.

Method 4: Using Internet Resources

The best thing about online cross selling is that you always have enough data to actively work with. Here you can even switch trading to automatic mode, based on the data that other people have bought.

If a person is looking for tomato seeds, it is worth offering seedlings and fertilizers nearby. Take advantage of Google Analytics' Site Overlay feature to see which products work best together. This will show statistics on transitions from one to the second. Sales data will tell you which products are bought together. Remember, it's easier for customers to get additional information about products without searching and clicking. Therefore, each page of your site should stimulate and help cross-sell.

Method 5. Demand Stimulation

Tempting offers like “free shipping on orders over $1,000” can encourage anyone to spend a little more. You can offer a discount, a gift voucher for orders over a certain amount, the number of points earned for a certain set of expenses.

Use a combination of cross-selling methods to give your customers that extra little push to take action.

Method 6. The right price

Showcase all products at an attractive price. The buyer will see how well he can save. Find for yourself that ideal value that will make people happy and allow you to get a good income. Now form offers for customers and place them next to each other.

Method 7. Positive feedback from experts

Arm yourself with expert advice explaining why you need two products instead of one.
An example might be the simplest: “I bought cups and put this blue candle in the kitchen - it smells heavenly and fresh. I am pleased to gather friends for dinner and look at her fire, ”etc.

Method 8: Prepare the Buyer

If you are selling face-to-face, such as in the perfume department of a department store, you have every opportunity to plant cross-selling seeds early. Immediately begin to identify the potential client's weaknesses.

Method 9. Using discounts

“Add-ons and “add-ons” have become very popular among mobile phone companies in recent years because they offer attractive, but non-essential, additional products at a slight discount. There is a feeling that you are receiving two services, not one. It is very possible that you would never have bought a second product without such an attractive one-for-two. The shoe store formula "buy two, get the third free" has the same roots.

In addition, you offer a person some item at a discount, but it does not level your profit, but on the contrary, doubles the sales volume for each transaction. This is especially true during periods of slow sales.

If the client is not attracted to your offer the first time, try the direct mail method. It will allow you to follow stocks that provide appropriate incentives and buy again.

Method 10. Tact

Cross selling is not a method of customer management at all. Quite the contrary: the most effective situation is when the buyer is genuinely interested in items related to his original choice.

The main thing is to act with restraint, then customers will appreciate the positive aspects of the cross-selling method.

How to cross-sell banking products

Cross-selling (or cross-selling) bank services is the promotion of additional products that are somehow related to the main offer chosen by the client. Imagine: a person draws up a credit card, this is the main product. In addition, try to offer an insurance service, Internet banking, SMS informing, and a deposit.

Do not forget about one simple rule: if a client has issued only one bank product, then he is, in a way, a transit passenger on the train, that is, he will leave you at the nearest stop. Therefore, your main task is to connect the client to your bank, selling him more products that meet his needs.

The saddest mistake of a manager is to bring a person to the design of the main product and not offer a single additional one. But often a bank employee does just that.

For what reason is this happening? Here are some of the problems that prevent managers from cross-selling in a bank:

• Ignorance of the product line of cross-products and misunderstanding why a certain offer is needed. For example, if a specialist does not know why an NPF is needed, he will not transfer his knowledge to the client.
• Fear of offering additional products.
• Uncertainty, inability to work with customer objections when selling additional products.
• Laziness, the employee does not want to give himself an additional burden. It is much more comfortable to give a person what he came to the bank for, and continue to go about his business.
• Fear of customer rejection often turns into a real obstacle in any sales, including cross-selling.
• Feelings of discomfort due to imposition. Then the manager tries to step over himself, feels uncomfortable in front of the client. Usually he thinks: “He definitely can’t be interested, but I MUST offer ...”
• Lack of cross selling skills. Most bank employees do not have successful experience in such sales. They do not present a clear algorithm of actions, they do not know what and to whom to offer. Therefore, most often cross-selling is chaotic or completely absent.
• The need for cross-selling is perceived as another "whim of the authorities." In this regard, employees may give completely ridiculous reasons why the sale did not happen: “This client hardly agreed to a loan, what kind of insurance does he need? It’s good that he did it without her”, “And this one, like the others, said that he didn’t need NPF, anyway he won’t wait for a pension ...”, etc.

The following skills will help you get rid of fear, embarrassment and increase the level of cross-selling in the bank:

1. Knowledge of the product line. You can also highlight the sincerity of the manager and the desire to help the client. However, even if you are as open and friendly as possible, you will not be able to sell an additional product that will satisfy the needs of the client.
2. sincere interest- the golden rule of any sales. Identify customer needs, cross-sell based on them. For example, a situation often arises when a specialist is not at all interested in why a loan is taken or a plastic card is ordered. While all other information belongs to him: from the amount of the credit limit to the payment system and card category. But additional necessary banking products depend on the goals of a person.
3. Refusal of phrases, like “Would you like to issue ...?”, “Are you not interested in ...?”. These negative formulations are more conducive to a negative response. In addition, offering your cross-products in this way is like killing your own sales.
4. Just start selling additional offers. It may very well be that the first time you get rejected, but here the main thing is to start using cross-selling. Moreover, to offer not one free product, but at least 3, somehow related to the main one. Literally after 3-4 unsuccessful attempts, you will feel confident and notice the result.
5. Make a matrix of cross-products. Nothing will help you better than a mini cheat sheet, which is always at hand. That is, the matrix of cross-products is a scheme of compatibility of various offers. Such a simple tool will never miss an extra. sales, because in any situation you will know exactly what else you can offer a person and how to do it.

How to kill two birds with one stone - that is, to sell a client something for which he was not initially going to you at all? Moreover: how to build sales so that all customers buy from you more than they planned?

Understanding the Cross Selling Template from the Book "Business Models: Top 55 Templates"(Publishing house "Alpina Publisher").

What is this?

Cross-selling involves offering additional (besides the main) goods or services of the company. The goal is to leverage existing customer relationships in such a way as to sell more. The Cross Selling template gives you the opportunity to get the most out of resources, sales, and marketing.

• The main advantage of such sales for customers is getting more value (benefit) from a single source by saving on finding additional products (what).
• Another absolute plus of this template is the sense of security that it instills.

Customers who have established a trusting relationship with a company feel comfortable trusting it again, which is not the case with their perception of a new company. Therefore, when offering additional products and services, it is extremely important to continue to satisfy requests - so that dissatisfied customers do not abandon the original product. This requires careful planning and maintenance of the company's product line.

Origin

Cross-selling was already in use among traders in ancient times in the bazaars of the Middle East. Currently, they are used, for example, by the oil and gas giant Royal Dutch Shell (better known as Shell). Through its network of filling stations, Shell sells non-oil products such as groceries and daily necessities.

According to legend, it all started when a shrewd customer of the Kentucky Fried Chicken (KFC) franchise opened his restaurant at a Shell gas station. Soon, customers were filling their stomachs there as well, inspiring Shell to cross-sell. In fact, the combination of food and gasoline proved so successful that the company immediately began to apply the concept of "Cross Selling" in other aspects of its business.

innovators

The Swedish company is the world's largest furniture retailer. The company produces ready-to-assemble furniture, household appliances and. IKEA uses the concept of "Cross Selling" by complementing furniture sales with a huge variety of services and products, such as home furnishings, home decorations, in-store restaurants and car rental services. All of the above is more than beneficial for profits.

Tchibo, a German coffee shop chain and coffee retailer, has also successfully implemented a cross-selling business model. Founded by Carl Chilling-Irjan and Max Hertz in 1949 in Hamburg, the company's original business was to sell coffee beans by mail order. Subsequently, Tchibo successfully expanded its range with non-coffee products. In 1973, Tchibo founded a new division specifically for non-food products.

Now under the motto "Every week a new world", Tchibo offers a wide selection of non-food products at low prices for a limited time: cookbooks, home goods, clothing, jewelry and insurance policies, to name but a few. The expanded product range generates about 50% of revenue and more than 80% of Tchibo's profits. "Cross-selling" largely determines the outstanding brand awareness of Tchibo in their native Germany: at least 99% of Germans know about the company.

When and How to Apply the Cross Selling Pattern

The enormous potential of the template can be revealed in situations where ordinary, not very profitable goods or services that satisfy a basic need are combined with highly profitable products.

This is particularly the case with consumer goods, where customers make additional purchases for the sake of convenience. For example, they buy food at gas stations. The pattern also finds application in , where highly specialized products are grouped with other goods and services. This can be special elevators for high-rises in a building with conventional elevators and escalators, or the installation of new elevators, including maintenance. Such combinations usually satisfy the desire of buyers to purchase everything they need in one place.

A few questions to think about:

1. Can products be grouped for consumer convenience?
2. Is the subjective perceived usefulness of Cross Selling high enough?
3. Is there a natural need to group these products from the consumer's point of view?
4. Can we set uniform prices for these products?
5. Are entry barriers high enough for potential new competitors?

Cross-selling is the sale of different services or products to the same customer. The basic idea of ​​cross selling is to use existing relationships with a customer to sell him an additional product or service.

Types of cross sales:

• 1. Sales of additional assortment to one client. Can be distributed in wholesale sales.
• 2. Sales of related products. A person purchases a printer, he can be offered to buy or refill cartridges.
• 3. Selling different products or services to the same customer with the same profile. For example, selling accounting, legal and IT outsourcing for a new company.

Cross-selling is great, but there are some nuances to working with it. Let's consider everything in order.

1. Sales of additional assortment

This is most often the Klondike for many companies. A case in point happened on one of our sales development projects. One manager has been working with a good client for 5 years, supplying him with Italian equipment. Both are satisfied with the cooperation. When we developed the concept of cross sales and scenarios for the development of the assortment matrix, this manager said that he would never sell Chinese equipment to this client, because “this serious client will not trade such nonsense” and he would not even dare to offer him, so as not to reduce supplies by more marginal goods - Italian and generally not "fall" in the eyes of the client.

Then the manager personally contacted the client and asked about the attitude of this client to Chinese products. The client, apologetically, admitted that in addition to Italian, he also works with Chinese equipment to expand the range. And when I found out that the company also supplies Chinese equipment, I tripled purchases! That is, the manager thought that the client would not work with “such nonsense”, and the client thought that the company did not supply “such nonsense”. Of course, this is a glaring case when a manager does not know his client's business thoroughly, but thinks it out for the client. But, unfortunately, this situation is quite common in wholesale sales departments. To sell an additional assortment, you need to have a good understanding of the client, the clients of your client and be able to expand horizons, otherwise it is impossible to work with cross-selling.

2. Sale of related products

This is one of the easiest types of sales. Very easily solved by preparing simple . We regularly come across such scenarios that sometimes bring companies up to 50% of revenue: “Will you add cheese to a hamburger?”, “What will you drink?”, “Great mouse, and we have a wonderful mat for it.”

3. Selling different products or services to the same customer with the same profile

One of our clients, having many companies in different directions, dreamed of creating a universal sales manager. This potential employee was supposed to sell the Internet, insurance, and several other destinations for wealthy clients. Is it cross selling? The client motivated such a task by the fact that he himself, communicating with a wealthy client, can sell him two, three, or even more services.

Do you think he managed to make such an all-rounder out of his managers? Failed. Each of the new managers concentrated on selling one of the products, and rarely sold the rest. We clearly explained to him why such sales are not possible, given the trends in the development of cross-selling in the Russian market.

Why is it often not possible to sell different goods to one client?

a) Concentration on a certain product

The process of active sales is to process a large mass of customers with a certain profile and promote customers through. When customers enter the sales funnel and have different interests at the same time, it is quite difficult to structure them and track their performance. Subconsciously, the manager chooses the most comfortable product and begins to focus on it.

b) Client trust

People want to buy from professionals in their field. One situation is when a manager understands various IT systems and can choose from them a solution that covers the needs of the client. Another situation is when he starts running from product to product and offering different products. Do you have internet connection? Have you already secured your insurance? Have you ordered Christmas gifts? Can you imagine such a dialogue? And imagine the level of trust that will be in the manager in this case as a professional. How can such a manager work effectively with a cross-selling system?

c) Product and customer knowledge

One of the factors of successful sales is knowledge of the product, the profile of the client, his needs. And with each sale of this product, the manager gets to know it better. When his attention is divided among several products, he pays less attention to each of them, understands customers less and sells less.

d) Different motivation

Different products have different marginality and, accordingly, different motivation for the manager. Ceteris paribus, the manager chooses a product that brings him a large profit and concentrates on it, there is not enough motivation for cross-selling.

e) Different selling efforts

Different products require different efforts to sell. Of course, a normal manager is looking for the optimal ratio of the previous point - motivation and efforts spent on sales.

Why, then, did the owner of several businesses manage to be a generalist seller? Yes, because he created businesses and knows a lot about products. He has the same motivation to sell any of the products, he does not make money, he enjoys selling, he is trusted because he has achieved something in life by creating several different companies. Is it possible to repeat his situation? It is possible, but quite difficult and requires a huge qualification from the manager, a different motivation and a well-organized sales business process.

Cross selling is a great tool. Only when it is implemented, it is necessary to clearly understand that the manager follows the path of least resistance. He will intuitively look for a product that will be easier to sell and that will bring more income.

In order to competently launch cross-selling, it is necessary to develop, train managers and monitor the execution of scenarios, and if difficulties arise, we will always be happy to help you in this matter.

Cross selling (cross selling) is a good tool to improve sales results. This tool should be used whenever there is a wide range of goods and services. To do this, it is necessary to carry out appropriate work with sellers and build cross-merchandising.

Cross selling is the additional sale of related products to the main one. For example, you sell a music center for a TV. The TV cloth is an accessory and the stereo is a related product. Cross selling is a great way to increase the average check and, as a result, the turnover. The word cross-selling comes from the English cross-selling and translates as cross-selling.

Organization of cross-selling in the store.

In modern stores, building a cross-sales organization can increase revenue by several times. All work on the organization of cross-selling can be divided into two parts: and cross-merchandising.

Sellers should be well aware of what products to offer when selling the main product. To do this, during the initial training of sellers, it is necessary to devote time to bringing information about related products, and most importantly, to control whether related products are offered at the end of the transaction. It would be best to include an item - the offer of related products and accessories.

Teach the seller to identify needs for a related product. Correct and complete works wonders, all you need to do is just ask all the necessary questions about the related product and this will help you make the right offer at the right time. For example: when selling a TV, ask: what the client will watch on it, how important is high-quality sound to the client, whether the client has a stereo system at home. These questions will help sell both the main product and the home theater.

In addition to staff training, it is necessary to create conditions for the independent sale of related products. This will greatly simplify the work of the seller. Here are a few things to keep in mind when building store merchandising:

These simple ways will help you increase the number of items in the check, increase the average check and increase turnover.

Cross selling services.

Separately, I would like to touch on the cross-sales of services, as well as sales in. When needed, cross selling is a great tool, especially in a highly competitive market. The work of the seller is very important here, since other methods are ineffective (except perhaps for upselling).

Cross selling is very active in the banking sector. For example, you came to get a salary card, and you were offered to get a mortgage, issue a credit card and connect to VIP service. This approach allows you to significantly increase the shopping basket, and even affects customer loyalty, because many people simply do not know about these services.

Another option for using cross-selling is the offer by one company of the services of a partner company on mutually beneficial terms. For example: a restaurant may offer toastmaster services for a wedding, etc. Such cooperation can bring good profits to both firms.

The most important thing to keep in mind when cross-selling is that the more customers you offer a related product to, the more customers will agree. Naturally, you need to work on cross-selling, but also do not forget about those customers who were offered to buy related products.