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Cross-selling in the New Era: A Win-win for Banks and Customers

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In this new Accenture document we discuss how banks can reinvent cross-selling. The presentation introduces a sales paradigm that serves the financial well-being of customers better and demonstrates a bank's value as a trusted advisor. For more information, read our blog post on bank cross-selling: bit.ly/2hLpxO1

Published in: Economy & Finance

Cross-selling in the New Era: A Win-win for Banks and Customers

  1. 1. Reinventing the Wheel: Bank cross-selling of the future
  2. 2. From “cross” to “right” selling Customer expectations are rapidly changing, while digital-savvy new entrants are disrupting the banking industry In this new era, banks need to consider a new sales paradigm to serve the financial wellbeing of their customers better and demonstrate their value as a trusted advisor Banks do not have to abandon cross- selling; they just need to reinvent it 2
  3. 3. Traditional sales models create four major challenges for banks in the new digital age: SALES EFFECTIVENESS CHALLENGE: Only 15% customers satisfied with front-office services Only 20% believe incentive system is “fair” and “customer-oriented” RETENTION CHALLENGE: 15% decrease in regional and/or national bank clientele COST-TO-SERVE CHALLENGE: Only 15% client base engaged digitally BRANCH USE CHALLENGE: 87% anticipate using branches in the future (Source: North America Digital Banking Survey) 3
  4. 4. In order to overcome these challenges, banks need to consider a new sales paradigm that focuses on: QUALITY, NOT QUANTITY Reorient sales effectiveness to measure the value add for the customer Adopt a scientific approach to analyze customer information and identify sales opportunities Redesign sales behaviors on long-term relationships with the customers CUSTOMER DEMAND LONG-TERM GROWTH, INSTEAD OF “SHORT-TERMISM” 4
  5. 5. BUILD NEW INSIGHTS DESIGN NEW INCENTIVE PLANS BUILD STRONG GOVERNANCE AND COMPLIANCE CULTIVATE AN ETHICAL SALES CULTURE Here are the four key steps to building this new sales paradigm: 5
  6. 6. Create a 360-degree picture of their customers by aggregating all the different services, products, communications, interactions, and information the bank has with customers Build processes and tools to train and educate frontline staff in how to interact with and engage customers Enable an end-to-end customer management strategy that not only provides internal transparency to the sales process and pipeline, but also fosters team selling, enabling an enterprise wide management of the customer relationship 6 Step 1: Build new insights and understand your customer
  7. 7. Step 2: Design new incentive plans Accurate Target/Goal Setting – Individual sales targets should not be based on top-down or arbitrary targeting, but instead be driven by data and analytics and based on the customers’ needs, fit, and affordability Appropriate Sales Incentives – Sales incentive plans should be designed to drive intended employee behaviors and preferred customer outcomes Holistic Performance Management – Banks need to design a customer-focused sales performance management system based on the right set of sales metrics and incentives. It is the broader performance management system that drives total incentives, recognition, and reward decisions 7
  8. 8. Monitor and measure the key steps in the sales process, from both the individual sales-person’s perspective and the individual customer’s perspective Place compliance checks at all levels of the organization and transaction(s) flow Assess viability of goal, validating authenticity of account(s), monitoring sales methods, and auditing unusual spikes in sales performance 8 Step 3: Build strong governance and compliance
  9. 9. Foster a culture that instills the philosophy that sales goal achievement is secondary to ethically serving customer needs, and support this philosophy with strong governance and compliance from leadership throughout the organization Include an understanding of the value of the customer and one that identifies the roles employees are expected to play in a team- selling environment Reinforce basic principle by front-line, real-time coaching and communication, and should include clarity and transparency to customers and employees of specific values, such as: we are proud of our products, we can meet your needs, and we want to earn your business 9 Step 4: Cultivate an ethical sales culture
  10. 10. Successful banks of the future will develop these three traits: Balanced sales strategy that leverages corporate goals with customer satisfaction Synchronized coordination between all channels involved in the customer journey Extensive approach, which aligns HR with new customer-oriented focus in hiring, training, incentives 10
  11. 11. BUILDING EMOTIONAL LOYALTY BASED ON MUTUAL TRUST DEVELOPING VALUE PROPOSITION BASED ON VOICE OF THE CUSTOMER UNDERSTANDING CUSTOMER INTENT ADOPTING CUSTOMER’S PURPOSE This new sales paradigm depends on: 11
  12. 12. THEIR HOLISTIC AND GENUINE NEEDS WILL BE BETTER SERVED CUSTOMERS WILL FIND A TRUSTED FINANCIAL ADVISOR IN BANKS Reinventing the wheel of cross-selling is a win-win… for banks and customers alike: 12 BANKS WILL DEVELOP A BETTER REPUTATION AND BUILD LOYALTY BANKS WILL GROW FROM QUALITY IN SALES
  13. 13. ANALYZE OVERALL CUSTOMER EXPERIENCE THROUGH MYSTERY SHOPPING RUN A SENTIMENT ANALYSIS TO UNDERSTAND THE REAL PERCEPTION OF THE BRAND LEVERAGE INCENTIVES BASED ON ADVANCED ANALYTICS RETRIEVE THE VOICE OF BUSINESS THROUGH INTERVIEW AND CUSTOMER SURVEYS Discover the Accenture’s “Sales Lab” to create your advisory model “genome” and focus on quality and sustainable growth. For more information, contact Marc Mccollum at marc.s.mccollum@accenture.com 13
  14. 14. Additional information Read blog post: “Cross-selling in the new era: A win-win for banks and customers” Read our point of view: “Selling in the Age of Distraction” Learn more about Accenture Distribution & Marketing Practice for Financial Services 14

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