home » Marketing » What is cross-selling of banking products? Features of cross-selling in banks Types of cross-selling.

What is cross-selling of banking products? Features of cross-selling in banks Types of cross-selling.

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Cross selling

A very effective method of increasing the amount of the average check is cross-sell (“cross-selling”), implying an offer to the buyer of related goods and services that logically complement those already chosen by the client.

For example, when buying a laptop, at the checkout they also offered me an additional service for a year and wet wipes for the screen, which then cost 140 rubles. I bought the napkins because I thought they were something special. As it turned out, the most common wet wipes, the cost of which is 10–15 rubles. If I knew what they were, I wouldn’t take them. But the technique worked for me.

Cross-sell is one of the methods that bring the main profit McDonald's. Cashiers memorize several phrases that they obliged say when taking an order from a client: “Will you have French fries or a pie?”, “Would you like a large or small cola?” etc.

If the cashier does not offer anything additional, the shift leader will immediately call him and give him such a good reprimand that he would rather forget his name than the necessary chant. And why all? Because on this McDonald's makes a lot of money. And despite the fact that many people are already annoyed by these questions, McDonald's will not refuse them, because those who complain still continue to go there for another portion of unhealthy food.

Cross-selling doesn't just work when selling food, clothing, or electronics. They work almost everywhere. Corporate sales are no exception. They often earn more on related goods and services than on the main ones.

Why is cross-selling so good? Because they are carried out at the time of purchase. The fact is that before registering it, the buyer still had doubts, wondered whether he could trust you, whether it was worth buying, etc. But when he had already decided to buy and goes to pay for the goods, everything changes radically. At this moment, the client is in a buying mood, almost in a trance. He has already overcome his internal doubts about your company, he has already convinced himself of the need for the product he is purchasing, and at this moment he agrees much more easily to buy something else.

It is clear that not all clients will agree to buy additional goods or services. But even if 30% of customers increase the amount of their purchase by 30–50%, then this is an increase in sales of 10–17%. In my opinion, it is quite significant to consider introducing cross-selling into your practice.

In order for cross-selling to bring you profit systematically, and not randomly, you need to carefully consider which goods and services will be offered as additional ones, and spell all this out in instructions, standards and regulations for employees.

You can create a separate document called a “Company Product and Services Directory” that lists:

Product name;

Description of the product parameters and its purpose;

Description of the product's advantages, including in comparison with competitors;

Who to offer this product to;

What goods and services should be offered in addition to this product;

What more expensive and cheaper analogues can be offered instead of this product (upsell and downsell).

To control the actions of staff, you can put up information signs in the hall or at the cash register with approximately the following content: “If you were not offered additional services and an MFP for this laptop, then you are entitled to a mouse as a gift.” The mouse, of course, is donated at the expense of the seller’s salary.

Thus, the employees will be controlled by the buyers themselves, since a couple of such gifts at their own expense will quickly wean sellers from being lazy and forgetting instructions on cross-selling.

By the way, you can also wean salespeople from forgetting to ask customers if they would like to receive or buy (depending on the approach you choose) a discount card. Or encourage buyers to double-check whether they were actually sold the goods cheaper using the card or whether the seller swiped the card through the cash register, but charged the buyer the full price, putting the discount in his pocket (this often happens in cafes and restaurants).

It’s even better to automate the process of cross-selling and up-selling as much as possible: giving the seller specific recommendations for cross-selling based on the product chosen by the buyer and/or his purchase history. This will make the work of sellers easier, and it will be easier to control them.

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From the author's book Cross selling is the sale of different services or goods to one client. The main idea of cross-selling is to use an existing relationship with a client to sell him an additional product or service.

Types of cross selling:

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 the purchase or refilling of cartridges.
3. Sales of different products or services to the same client with the same profile. For example, the sale of accounting, legal and IT outsourcing for a new company.

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

1. Sales of additional assortment

This is most often the Klondike for many companies. An illustrative incident occurred at 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 happy with the cooperation. When we developed the concept of cross-selling 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 sell such nonsense” and he would not even dare to offer it to him, so as not to reduce supplies by more marginal product – Italian and generally not “fall” in the eyes of the client.

Then the manager personally contacted the client and asked a question about this client’s attitude towards 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 my 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 the manager does not know his client’s business thoroughly, but thinks it out for the client. But, unfortunately, this situation occurs quite often in wholesale sales departments. To sell additional assortment, you need to have a good understanding of the client, your client’s clients, and be able to expand your horizons; otherwise, it is impossible to work with cross-selling.

2. Sale of related products

This is one of the simplest types of sales. Very easy to solve by preparing simple ones. We regularly come across such scenarios that sometimes bring companies up to 50% of revenue: “Are you adding cheese to the hamburger?”, “What will you drink?”, “It’s a great mouse, and we have a great mouse pad 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 areas, dreamed of creating a universal sales manager. This potential employee was supposed to sell the Internet, insurance, and several other areas for wealthy clients. Is this cross-selling? The client motivated this task by the fact that he himself, when communicating with a wealthy client, could sell him two, three, or even more services.

Do you think he managed to make such a universalist 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 development trends of cross-selling in the Russian market.

Why is it often impossible to sell different products to one client?

a) Concentration on a specific product

The process of active sales consists of processing a large mass of customers with a certain profile and promoting customers according to. When customers enter the sales funnel and have different interests, 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 meets the client’s needs. Another situation is when he starts running from product to product and offering different products. Are you connected to the Internet? Have you already taken out insurance? Have you ordered gifts for the New Year? Can you imagine such a dialogue? And imagine the level of trust that the manager will have in this case as a professional. How can such a manager effectively work with a cross-selling system?

c) Product and customer knowledge

One of the factors for successful sales is knowledge of the product, the client’s profile, and 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 devotes less attention to each of them, understands his customers less, and sells less.

d) Different motivations

Different products have different margins and, accordingly, different motivation for the manager. All other things being equal, the manager chooses a product that brings him more profit and concentrates on it; there is not enough motivation for cross-selling.

e) Different selling efforts

Selling different products requires different efforts. Of course, a normal manager is looking for the optimal ratio of the previous point - motivation and effort spent on sales.

Why then was it possible for the owner of several businesses to be a generalist seller? Yes, because he created businesses and knows a lot about products. He has the same motivation for selling any of the goods, he does not make money, he enjoys selling, he is trusted because he has achieved something in life, having created several different companies. Is it possible to repeat his situation? It is possible, but it is quite difficult and requires enormous qualifications from the manager, other motivation and a clearly structured business sales process.

Cross selling is a great tool. Only when implementing it is it necessary to clearly understand that the manager is following the path of least resistance. He will intuitively look for a product that will be easier to sell and that will generate 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.

From this article you will learn:

What is cross selling

What varieties are cross-selling?

What to do to increase cross-selling

How to cross-sell banking products

Why cross-selling doesn't bear fruit, but you did everything right

The cross-selling method has successfully taken root in the Russian trade sphere. There's no denying that, in a sense, he's always been there. However, it came to us as a full-fledged trading strategy with its own theoretical justification not so long ago. It just so happens that most Western borrowings take root in our country not entirely, but in parts. The same thing happened with cross-selling. A typical operating pattern for an ordinary store in our country: intrusive service, the essence of which is that the paying client is not allowed out, trying to impose promotional or simply incredibly useful goods. Of course, this example is an illustration of the pure illiterate use of cross-selling. Next, let's talk about how this method should actually be implemented.

What cross-selling looks like

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

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

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

As the story goes, it all started when a cunning franchisee Kentucky Fried Chicken(KFC) opened a restaurant at a Shell gas station. Quite quickly it became popular among customers, which inspired the oil corporation to introduce cross-selling. Ultimately, the combination of food and fuel for cars turned out to be so successful that the concept was transferred to other aspects of Shell's business.

In what advantages of this method:

Any product sold increases turnover. When they grow, the company's profits also rise.
Since the product is offered to already attracted customers, no additional costs are required to study the market or lure buyers.
Cross-selling has a positive effect on customer loyalty and his tendency to turn to this particular company, which is always an additional support and airbag for any company.
Positive customers and additional income create favorable conditions for innovation.
The method increases sales without competing on price with other companies.
If clients have developed a trusting attitude towards the company, then they are ready to return to it again and again. While the new company will be viewed rather with caution. Therefore, when launching new products, it is important that they meet demand, that is, that people do not abandon the original product. This requires careful planning and maintenance of the company’s product line.

Which varieties are cross-selling?

When a cross-program (cross-program) 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 come together for joint sales, then it is worth talking about external cross-selling. In this scenario, companies tell potential buyers about their partner’s product without requiring additional payment for advertising.

Basically, cross-selling is implemented if the company operates in the target market. For a company working for such a group, it is required to sell the maximum number of different goods to one consumer. Whereas for a business selling on the mass market, it is more important to sell the largest possible volume of certain products to a larger 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 offered products have.

Step 2. Highlight all possible combinations of sentences with the same target audience. Then re-think the existing consumer benefits. In this case, the “center-periphery” strategy will be useful. The company chooses its sales core, that is, its most relevant product at the moment. Obviously, it can attract buyers and set them up for long-term cooperation. This creates a positive impression of the business as such, and now additional sales will be 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 good profits through mass sales.

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

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

Step 5. Create a system for monitoring the effectiveness of the method used. Types of goods and their combinations, transaction analytics, profitability by product, customer, and business area should be taken into account.

Find out: how to get maximum results from your staff while spending a minimum of effort during training

Step 7 Think over a management system: monitoring execution, evaluating efficiency, adjusting technology, etc.

10 Methods to Increase Cross-Selling

Method 1. A balanced approach

It’s worth taking an example from supermarkets and kiosks around the world: it’s not for nothing that they always have rubber bands, chocolate bars and magazines on their shelves. Impulsive desire is also important, since any queue always stimulates additional purchases. Try to choose the most inexpensive products as a complement to the top products. To create a similar effect on your Internet resource, read the next paragraph.

Method 2: Product Supplementation

Check to see if you have managed to create a range of products that complement each other. For example, if you deal 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 rental vehicles.

It's easy to launch such a service. You just need to ask your clients if they need an additional item.

Your cross-selling offer should be significantly cheaper than the original product. That is, it will not require much thought before purchasing. The more complex the chosen product and the way you explain its need to the client, the less simple your cross-selling will be.

Are you sure that your employees are well aware of all products, including related products? It is necessary to properly teach them how to sell using our method.

According to the largest online auctions, as much as 35% of all annual revenue was generated through cross-selling. “Customers who bought this product also bought ‘and’.”

You can replicate this effect on your site with recommendation automation—the sales giants do the same. Or you can manually upload items in the appropriate places on your site under the “Also bought” column in the product line item. This method is much cheaper, but takes more time. Use your sales data to show that products were purchased several times at a time.

This technique will be useful when working with clients with similar tastes and a related list of recent purchases.

Method 4. Using Internet resources

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

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

Method 5. Stimulating demand

Tempting offers, for example, “free delivery of orders over 1000 rubles,” can push anyone to spend a little more. You can offer a discount, a gift coupon for orders over a certain amount, or a number of points earned for a certain set of expenses.

Use a combination of cross-selling techniques to give your customers that extra little nudge.

Method 6. Right price

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

Method 7. Positive expert reviews

Arm yourself with expert advice that explains why you need two products instead of one.
An example could be as simple as: “I bought some cups and put this blue candle in the kitchen - it smells heavenly and fresh. It’s nice for me to gather friends for dinner and watch her fire,” etc.

Method 8. Preparing the buyer

If you sell face-to-face, such as in the perfume department of a department store, you have every opportunity to plant the seeds of cross-selling early. Start identifying your potential client's weaknesses right away.

Method 9. Using discounts

“Add-ons and “add-ons” have proliferated among cell phone companies in recent years because they offer attractive, but non-essential, add-on products at a slight discount. It feels like you are getting two services, not just one. It is very possible that you would never have bought a second product without such an attractive one-for-two appeal. The shoe store formula: “buy two pairs, get the third free” has the same roots.

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

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

Method 10. Tactfulness

Cross-selling is not a customer management technique at all. Quite the opposite: the most effective situation is when the buyer is genuinely interested in items related to his initial 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) of bank services is the promotion of additional products that are somehow related to the main offer chosen by the client. Let's imagine: a person issues a credit card, this is the main product. In addition, try offering insurance services, online banking, SMS notifications, and deposits.

Don’t forget about one simple rule: if a client has purchased 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 link 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 any additional ones. But often a bank employee does just that.

For what reason does this happen? Here are some problems that prevent managers from cross-selling in a bank:

Ignorance of the product line of cross-products and lack of understanding of why a certain offer is needed. For example, if a specialist does not know why NPF is needed, he will not pass on his knowledge to the client.
Fear of offering additional products.
Uncertainty, inability to work with client objections when selling additional products.
Laziness, the employee doesn’t want to give himself additional workload. It is much more comfortable to provide a person with what he came to the bank for and continue to go about his business.
Fear of client rejection often turns into a real obstacle in any sales, including cross-selling.
Feeling of discomfort due to imposition. Then the manager tries to overstep himself and feels uncomfortable in front of the client. Usually he thinks: “He definitely can’t be interested in this, but I MUST offer...”
Lack of cross-selling skills. Most bank employees do not have successful experience in such sales. They do not have a clear algorithm of actions and do not know what to offer and to whom. Therefore, most often cross-selling is chaotic or completely absent.
The need for cross-selling is perceived as just another “whim of management.” In this regard, employees may give completely ridiculous reasons why the sale did not happen: “This client had difficulty agreeing to take out a loan, what kind of insurance does he need? It’s good that he applied for it without it,” “And this one, like the others, said that he doesn’t need a non-state pension fund, he won’t get his pension anyway...”, etc.

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

Knowledge of the cross-product line. You can also highlight the manager's sincerity and desire to help the client in the first place. 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 client’s needs.
Sincere interest- the golden rule of any sales. Identify customer needs and offer cross-sells based on them. For example, a situation often arises when a specialist is not at all interested in why a loan is being taken out or a plastic card is being ordered. While he owns all other information: from the amount of the credit limit to the payment system and card category. But additional necessary banking products depend on a person’s goals.
Refusal of phrases, like “Would you like to register...?”, “Aren’t you interested in...?” These negative formulations are more conducive to getting a negative response. Besides, offering your cross-products in this way is like killing your own sales.
Just start selling upsells. It is very possible that you will get a refusal the first time, but the main thing here is to start using cross-selling. Moreover, 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.
Create a matrix of cross-products. Nothing will help you better than a mini cheat sheet that is always at hand. That is, the cross-product matrix is a diagram of the compatibility of various offers. Such a simple tool will allow you to never miss extras. sales, because in any situation you will know exactly what else you can offer a person and how to do it.