Cross Selling in Banking free essay sample

Definition of Cross-sell The practice of selling or suggesting related or complimentary products to a prospect or customer. Cross selling is one of the easiest and most effective methods of marketing. In the financial services arena, cross selling can mean selling different types of investments to investors, or even insurance to investors, or tax preparation to retirement planning clients. Definition: A sales technique in which the salesperson recognizes what a customer is purchasing and will make suggestions or ecommendations of other related merchandise the shopper may also be interested in purchasing. Also Known As: Suggestive Selling Examples:ln our store we do not have salespersons so it is the Job of the cashier to cross-sell to shoppers. The cashier is trained to suggest related merchandise based on the items the customer has decided to buy. Cross-selling is the action or practice of selling among or between established clients, markets, traders, etc. We will write a custom essay sample on Cross Selling in Banking or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page or the action or practice of selling an additional product or service to an existing customer. This article deals exclusively with the latter meaning. In practice, businesses define cross- selling in many different ways. Elements that might influence the definition might include the size of the business, the industry sector it operates within and the financial motivations of those required to define the term. The objectives of cross- selling can be either to increase the income derived from the client or clients or to protect the relationship with the client or clients. The approach to the process of cross-selling can be varied. Unlike the acquiring of new business, cross-selling involves an element of risk that existing relationships with the client could be disrupted. For that reason, it is important to ensure that the additional product or service being sold to the client or clients enhances the value the client or clients get from the organization. In practice, large businesses usually combine cross-selling and up-selling techniques to enhance the value that the client or clients gets from the organization (and vice versa). Cross-selling of professional services Benefits that can accrue to the customer include the efficiency and leverage that result from using a single supplier for multiple products. When buying complex professional services, like consulting needed to make and integrate an acquisition, the use of one firm reduces the fingerpointing that is common when a problem occurs in an area that straddles two or more services; if only one firm is responsible, fingerpointing is eliminated. For the vendor, the benefits are also substantial. The most obvious example is an increase in revenue. There are also fficiency benefits in servicing one account rather than several. Most importantly, vendors that sell more services to a client are less likely to be displaced by a competitor. The more a client buys from a vendor, the higher the switching cost. Though there are some ethical issues with most cross-selling, in some cases they can be huge. Arthur Andersens dealings with Enron provide a highly visible example. It is commonly felt that the firms objectivity, being an auditor, was compromised by selling internal audit services and massive amounts of consulting work to the