This document discusses cross selling of banking products and financial services. It defines cross selling as selling additional banking products to existing customers to expand business and provide more value. It discusses the scope of cross selling on both liability and asset sides, and provides examples like credit insurance. The importance of cross selling is that customers on average use less than two services, so there is opportunity. It also outlines tools and a 7 step process for effective cross selling relationships.

1. CROSS SELLING
OF
BANKING PRODUCTS & FINANCIAL SERVICES
-by
Gazal Badlani
Ashok Sarkar
PGDM 2010-12
Trimester – 4

2. Introduction
• Selling of banks products/services to an already
existing customer
• Cross-selling stands for being able to offer to the
existing bank customers, some additional
banking products, with a view to expand banking
business, reduce the per customer cost of
operations and provide more satisfaction and
value to the customer and higher per customer
earning.

3. Scope of cross selling
• Liability side
• Asset side

4. Examples of cross selling
1. Credit insurance
2. Life insurance enhancements to traditional
mortgages
3. Auto and homeowners insurance
4. Medical savings accounts
5. Asset management accounts

5. Importance
• Research statistics demonstrate that the
average customer uses less than two services
from any one depository institution
• Seventy percent of all customers share their
banking needs with more than one financial
institution

6. Tools Enablement
Ways:
• Phone banking
• Web
• Walk in
Tools:
• CRM techniques
• Referral tracking
• Sales call tracking
• MIS systems (activity management, information)

7. 7 - steps
Marketing facets
Yesterday Today
Mass Personal
Consumer is passive Consumer is participative
One off, short term Lifetime, long term
Limited use of technology Widespread use of
technology
Serve customer well Serve customer differently
Success measured by
current market share
Success measured by
lifetime market share
Success measured by
current Profits
Success measured by
lifetime Profits.

8. 7 times expense
 Strong commitment to customer care at all levels
 Promises made must be realistic and achievable
 Intimate knowledge of the customer leads to excellent
customer service
 Continuous feed back from the customers

9. 7 steps approach
Transaction Marketing Relationship Marketing
Focus on single sale Focus on customer retention
Orientation on product features Orientation on Product benefits
Short time scale Long time scale
Less emphasis on customer
service
Higher emphasis on customer
service
Low customer commitment Higher customer commitment
Mode rate customer contact High customer contact
Quality is a primary concern of
production
Quality in the concern of all

10. Cross selling & Relationship Banking
• The emphasis here is on viewing the customer as a long term business
relationship
• Banks plan to meet the total banking requirement of the customers and
expect repeat business
• Relationship is based on full knowledge about the customer needs and
causing total customer satisfaction by providing services that exceeds his
expectation
• An understanding of exactly what the customer is buying in critical. The
basic utility he derives from the product is the nucleus of core in the
center, surrounded by services of both tangible and intangible attributes

11. 7 steps model of relationship banking

12. 7 step model approach
1. On
super –
Ordinate
goal
2.
Strategy
4.
System
3. On
structure
5. On
skill
6. On
style 7. On staff

13. 1. On super - ordinate goal: Draw the vision and mission
statements around the customer value
2. Strategy - Draw a strategy of market segmentation to focus on a
customer
3. On structure - Restructure the organization as a cross functional and
process oriented one
4. System - Design a service delivery system on quality and coordination
5. On skill - Cultivate skill as cutting edge
6. On style -Devise a suitable appraisal system and reinforce it through
top management
7. On staff - Devise policies which empower staff and encourage open
communication
7 step model approach

14. 7 steps model of personal selling

15. 1. Prospecting & qualifying
2. Pre-approach (deciding the best approach)
3. Approach (ability to observe and listen)
4. Presentation
5. Handling objections
6. Closing
7. After sales service and follow up

16. Bundling

17. Cross selling process
Customer
analysis
Potential
estimation
Action
planning
Realization Controlling

18. Buying cycle
Awareness
Evaluation
Purchase
After sales

19. NPTB modeling
The challenge of cross
selling is to know which
product to sell to which
customer

20. NPTB modeling
A next product to buy modeling promises to
enhance the effectiveness of cross selling by
specifying which product to sell to which
customer

21. NPTB approach
1. Compiling data
2. Selecting statistical method
3. Estimation and evaluation
4. Scoring and targeting approach

22. Benefits
1. Develop a true dialogue with each customer
2. Knowing the ins and outs of the product
offerings
3. Propose appropriate solutions
4. Capture data and share it across enterprise
5. Create incentives around effective cross
selling
6. Recognize all opportunities for cross selling

23. Bottom line & Implementation
The biggest difference between "merely
effective" and "high performing" cross-selling in
financial services is the degree to which the high
performers invest the time to really understand
customers' needs.

24. Problems
• The banker as a consultant
• Who owns the client
• Dislodging a satisfied client

25. Thank You