The development efficiency of financial organizations directly depends on the quantity and quality of services sold. So, for example, in the banking sector - these are sold loans, installments, loans and other services, in insurance companies - these are insurance policies for cars, real estate, life insurance.
The implementation, together with the goods and services necessary for the client, of some additional ones is called cross-selling. In other words, it is the cross-selling of services or products.
The main objective of such methods is to increase the revenue side of the organization. Often, products that are sold using these methods are highly profitable, but less popular, and therefore they are offered as a “load” to other popular products.
Types of Cross-Selling
Conventionally, they can be divided into sales in the service sector and in the field of goods. In the service sector, this type of sales is often represented in banking and insurance.
The difference between this sales technique in different business areas
Cross-selling banking products is a combination of services that are different in purpose. For example, if a person has a loan, you can simultaneously sell a payment card. Thus, the load on the client will be much higher, the profitability of the institution - more. Another example: an enterprise applied to a bank for a credit line. The bank made a decision on lending, but taking into account the opening of a current account and the transfer of a salary project.
In this case, we see a voluntary-forced version of such a current account and salary agreement.
Cross-selling in insurance has also gained great popularity. Almost any insurance company seeks comprehensive customer service. That is, if you applied to an insurance company in order to insure real estate, you will certainly be offered other types of insurance (life, car, etc.). Selling other products of the insurance company along with the main one is cross-selling in insurance.
Trade and sales methods
Cross-selling in trade is slightly different from such actions in the financial sphere. Here they are presented, more likely, in addition to the main sale than a separate product. For example, when buying a smartphone or computer, you will be offered an additional service or software for a fee. In this way, products that sell poorly are popularized.
What are the benefits of such methods?
- Popularization of services that sell poorly.
- Often, cross-selling brings high returns, so using this technique significantly increases the financial performance of the company. The return on capital, the liquidity of the organization increases, which significantly improves the statistical indicators.
- The desire of organizations to switch to the European quality of cooperation, where a significant part of the profit (up to 30 percent) of the enterprise is derived from additional services, which are sold through cross-selling.
- Using this technique makes it possible for the organization to make “universal soldiers” from its managers, since the practical implementation of this method is possible only with excellent staff knowledge of all the company's products.