Let’s talk about what cross-selling is, in the simplest of terms. It is well known in the financial services industry that customers who sign up for multiple products and services are typically more loyal and, therefore, can bring organizations more revenue in the long run. These deeper relationships are what make cross-selling financial products so valuable and critical to growth.
Acquiring new customers is, without question, the cornerstone of any business. In fact, it’s often one of the key metrics touted in earnings reports. Customer acquisition also happens to be one of the most expensive aspects of the relationship. Therefore, exposing existing customers to the broader portfolio of products makes a lot of sense and is one surefire way to increase retention, not to mention demonstrate the long-term value of customers. Remember, the deeper the relationship, the stronger the relationship, and the more revenue companies can expect to generate.
While cross-selling remains essential to a company’s continued success, there’s a right way and a wrong way to do it. The right way involves building strong relationships with customers who see the true value in the other products the company offers – those who genuinely feel that a company’s products can help them thrive financially.
The wrong way is also fairly obvious: through unethical behavior. Opening a new bank account or credit card without consent are just two examples. While the latter occurs on rare occasions, at least on a grand scale, measures should be put in place to avoid such situations. A combination of risk mitigation strategies and methods can help companies reduce their risk exposure and cultivate successful relationships built on trust.
In a new guide, we outline six ways financial services organizations can employ a strategy focused on building customer and public trust, strengthening a company’s culture, and reducing risk exposure, all while increasing sales. You can download it here.