5 Steps to Deepening Customer Relationships — Targeted Cross-Sell

Five steps for successful cross-selling

• Bank Strategic Goals: Understanding your institution's objectives can help craft the product lineup to be promoted with a cross-sell program.
  - Deposits (CD, money market, savings) can be a focus of the marketing effort to garner additional balances.
  - Loans (equity, mortgage, credit card, auto) likewise can be offered to bolster institutional lending.
  - "Sticky" Services (online banking, e-statements) will help retain customers.

• Target customers likely to want the products: Targeting can range from using basic business rule selections to creating sophisticated customer product profiles, which enable the promotion of the products customers are most likely to purchase next. Many programs establish distinct product and service segments, selecting customers based on the offers they are most likely to respond to.

• Execute: Send offers via letter to customers selected for a product offer automatically at specific time intervals (i.e., monthly). The products offered can be organized in a matrix over time to ensure that marketing goals are addressed. This allows for marketing automation of cross-sell offers and the understanding that the institution continuously connects with customers. Plus, marketing automation relieves time pressure on the marketing staff.

• Multi-channel communication: It is recommended that a multi-offer segment program utilizes all available communication channels. While the mailing may be the program's centerpiece, email should be used in tandem with the letters reinforcing the offer before and after the mail is received. Likewise, digital marketing involving social matches and social media follow-up can keep the cross-sell offer in front of customers.

• Response Analysis: Understanding the results of a cross-sell effort is essential for evaluating the organizational impact of the mailings and making program adjustments to improve outcomes. Direct responses, where the customer opens the product or service offered, are critical, as well as all product openings, where the customer opens a product or service other than the one provided. Understanding open rates, balances generated, and the Return on Marketing Investment (ROMI) will help assess the program's profitability. Segment offers and selection criteria can be adjusted according to the tracking results on an ongoing basis. Bank marketers aiming to increase the number of products and services per household while enhancing customer retention and profitability can achieve both objectives through a robust cross-sell program.