Sell Once, Earn Twice
Today at a Glance:
“There are only three ways a company can grow. First,?earn more business from your current customers. Second, attract customers from your competitors. Or third, buy another company. If you can’t do the first, what makes you think you can earn more business from your competitors’ customers or from customers you buy through acquisition?”
— John Stumpf, Ex-Chairman and CEO, Wells Fargo
The emphasis on Cross-selling has become more pronounced than ever, and for good reason. The shift towards cross-selling is a natural extension of the retention and loyalty focus, as it allows FIs to leverage existing customer data and relationships to meet more of their financial needs. This approach reduces the likelihood of customers seeking products elsewhere, as their needs are being met within the same ecosystem. By prioritizing cross-selling, financial institutions are creating a more holistic customer experience, where loyalty is rewarded, and customers feel valued. As the financial landscape becomes increasingly competitive, the ability to retain and expand relationships with existing customers will be a critical differentiator for FIs looking to thrive in the market.
Stating an absolute?number as the "benefit" of cross-selling is entirely wrong, given the hundreds of assumptions involved, but our human brain loves to see one number, so why not?
Bain?has put a lifetime value on the affluent customer at $9,500. Is it 100% correct, of course not.?But directionally, we all agree.?I've talked about?the?ever-increasing incentives?for credit cards, but honestly, it's across banking. Small Business products included.
Today, I wish to highlight 3 reports that show us that cross-selling is not just the flavor of the month, it's the most logical evolution for our industry at this stage. I've discussed?Ecosystem?&?Network Effect?previously and the lynchpin is cross-selling.
1. Marisa's?Credit Card Application Report - Q2 2024
2. Patrick's?Offer Index: Cash Rewards - Q2 2024
3. Patrick's?Offer Index: Non Rewards - Q2 2024
Please let me know if you need access to any of these 3 reports.
This shift in strategy to cross-sell is driven by the realization that deepening customer loyalty enhances customer lifetime value and creates a more stable revenue base. By focusing on retention, FIs can capitalize on the trust and familiarity they have already established with their customers, ensuring that they remain engaged and less likely to switch to competitors.
As mentioned earlier, boiling anything down to one number is never 100% correct, but it does help us rank order a multi-variate?problem a lot easier. This is what the Offer Index does quarterly.
领英推荐
New Credit Card:?BMO?Premium Rewards Credit Card
It's interesting to note that BMO highlighted their?Real Financial Progress Index?and the latest learnings as the reason for the chosen value prop for this card.
Amex announced a few more enhancements to their Offers Platform:
According to a?new survey?by American Express: 68% of retail consumers in the U.S. say they now expect brands to provide personalized offers based on what they like, and 85% of U.S. retail decision-makers report that one of their business' biggest challenges is sustaining customer personalization at scale.
I put ChatGPT to work to compare Amex Offers and Chase Media Solution and found its conclusion pretty spot on:
The choice between Amex Offers and Chase Media Solutions depends on the specific goals of the merchant. If the goal is to drive immediate sales and engage with a high-value, loyal customer base, Amex Offers might be the better choice. Chase Media Solutions could be more effective if a merchant is looking for a more comprehensive advertising solution with a broader reach and varied campaign options. Ultimately, both platforms are successful in their own right, but they cater to different aspects of the marketing funnel.
"Selling to people who actually want to hear from you is more effective than interrupting strangers who don’t."
— Seth Godin
As ever - Anuj
Driving client success with data-driven market insights
3 个月Love the emphasis on creating a holistic customer experience through personalized offers and an integrated ecosystem is spot on. It’s fascinating to see how FIs like BMO and Amex are leveraging these insights to innovate their offerings. Thanks for sharing these valuable perspectives!
Competitive Intelligence @ TruStage | Strategy, Sales Enablement, Market Insights | Masters Candidate, University of Illinois
3 个月Anuj Shahani - you continue to share wisdom with proof. In this case, trusted brands should be doing this all day long. And if there are internal barriers to making this 'difficult', smash them down and get to it!
Commercial Leader | Driving Growth & Innovation
3 个月Absolutely Anuj - great reminders today, deepening customer loyalty is key, and that’s why my favorite channel in Comperemedia is email. It really shows how banks strategically engage their customers to prevent churn and boost lifetime value. ??