Transcript cross sell

MAXIMIZING SALES
POTENTIAL IN PRACTICE
Okan YURTSEVER,
Retail Banking and Bancassurance Director
23.09.2009, Bucharest
CROSS SELL
What is cross-sell?
A sales technique in which the salesperson recognizes what a
customer is purchasing and will make suggestions or
recommendations of other related product that the customer may
also be interested in purchasing.
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CROSS SELL
When to cross-sell?
Proactive cross-sell
– sell more than one product simultaneously when you sell the first
product (skilled sales force)
Retroactive cross-sell
– sell additional products after you sell the first one (in addition to
skilled sales force, you need CRM-Customer Relationship
Management- approach and tools)
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CROSS SELL
How to cross-sell?
Proactive cross-sell
– sell more than one product simultaneously when you sell the first
product (skilled sales force)
• Choosing right people
• Training (sales people must know all the range of the bank’s
products)
• Guidelines (tendency matrixes, if the first product is salary
card, then offer overdraft or credit card or online banking)
• Management by objectives (clear targets & follow up, if you
sell 10 salary cards at least 2 o/d and 1 credit card and 1
online banking)
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CROSS SELL
How to cross-sell?
Retroactive cross-sell
– sell additional products after you sell the first one (in addition to
skilled sales force, you need CRM approach and tools)
• Strategy & collecting data (X ray your customer for your CRM
approach)
• Well designed banking software (ability to extract data)
• Well designed CRM tool (data mining)
• Tendency analysis combined with cross-sell matrix (what is
the second, third, fourth product of your existing salary
clients? What type of existing clients apply for credit card?
etc)
• Create complimentary products (both for proactive and
retroactive x-sell) eg. POS line of credit, preferential rates for
salary cards
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CROSS SELL
Cross-sell for more income?
Generally, one big benefit of cross-sell is disregarded!!!
Cross-sell not only generates higher income
but also helps making clients more loyal to the bank…
life time banking… from university to retirement…
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CROSS SELL - EXAMPLE
20
Clients
pay
utilities
via teller
15
Clients are
offered
automated
utility
payment
66 x 12 months = 792
More loyal clients
per year per branch
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3
Clients
accepted
the offer
3 x 22 = 66
More loyal clients
per month
per branch
792 x 50 branches
39.600
More loyal clients
per year per bank
MULTI CHANNEL INTEGRATION
What are the most common channels for banks?
Direct Channels
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Branch (Classic, In-store)
ATM (Classic, multi functional, cash recycling)
Online Banking
Call Center
Mobile phone banking (Wap)
MULTI CHANNEL INTEGRATION
What are the most common channels for banks?
Indirect Channels
• Third parties (brokers, insurance companies)
• Web (own site, others)
Generating leads via web pages, ATMs, online banking,
mobile phones
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MULTI CHANNEL INTEGRATION
Why different channels?
Customer needs
• Making the client to be free from limitations (7/24, anywhere)
• Speed
• Post modern world facts
Cost optimization
• For the bank
• For the client
Deeper penetration
Hook & lock
• Creating loyalty
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MULTI CHANNEL INTEGRATION
How to integrate these channels?
Single-unified customer database
• Retrieving on-line real time data via different channels
• Accessing data from different channels
Channel management approach
• At least basic needs should be available
Customer centric approach (vacation, after office hours)
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OPERATIONAL EFFICIENCY
Why? From sales perspective
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•
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Customer satisfaction (fast and correct transactions, less queues)
Opportunities to cross-sell (more time to cross-sell)
Better cost & better prices (win-win results)
Complaint management (complaint - better services)
OPERATIONAL EFFICIENCY
How to be efficient?
Technological enhancement
• core banking system
• integration amongst different modules
Centralization (or De-Centralization)
• centralization of operations
• de-centralization of decisions (clearly identified initiatives)
Back office automation
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FAST GROWTH WITH BETTER ALLOCATION OF RESOURCES
From sales perspective
Cross involvement to sales (tellers, non-sales staff)
• All the staff in the branch should be involved in the sales process
• Organizational chart to be structured according to sales model
Supportive CRM tools (pop up screens for tellers)
Dedicated corners for clients (online banking, call center direct
lines)
• Some clients come for simple needs (acc. balance, acc. history)
Better designed branches
• Lobby management,
Queue management
• Preferred clients, preferred tellers, segmented branches
Central marketing activities (tele sales, direct mailing, drop
mailing etc.)
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FAST RESPONSIVENESS ON THE MARKET
From sales perspective
Customer satisfaction (fast and correct transactions, less queues)
• Decision to buy in 5 minutes, realization in 2 weeks
• Will the client come again?
Opportunities to cross-sell (more time to cross-sell)
Customer segmentation
Back office segmentation
Organizational structure based on customer segmentation
• Credit evaluation process based on customer segment
• Scoring
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EXAMPLE - ANALYSIS
50
owners
100
Clients
50
Debit cards
30
users
?
Sales
Efficiency
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Efficient users
How many clients own this product?
How many of them use at least once per month?
How many of them use at least per month with a volume more than 1.000 RON?
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EXAMPLE - ACTION
How can I increase sales efficiency of debit cards?
Sell
more
cards
Fast
delivery
process
Sell
more
advanced
cards
Have
multifunctional
ATMs
More number of
EFFICIENT DEBIT CARDS,
LOYAL CLIENTS, TRANSACTIONS, VOLUMES, INCOME
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GROWTH STRATEGY
Technology and
People
Multi-channel
Distribution
Efficiency Focus
Cross-selling
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Growth through
Segmentation
Highest Quality and
Innovative Products
and Services