2 Overlooked Factors in the Cross-Sales Process

Credit union efforts to increase cross-sales often focus on front-line staff training and developing a vast array of competitive, sticky product offerings. However, there are important factors to the cross-sell that credit unions sometimes overlook.

 
 

Cross-selling to members is a primary goal of credit union managers. Of special interest are those members that are new, low-balance, indirect loan recipients or single-service members. But why is this “silver bullet” issue so difficult to master? Credit union efforts to increase cross-sales often focus on front-line staff training and developing a vast array of competitive, sticky product offerings. However, there are important factors to the cross-sell that credit unions sometimes overlook; here are two of them:

  1. Brand – Many disaffected members have little knowledge about the credit union. Here, branding and the on-boarding or re-boarding process becomes very important. Matt Purvis, VP of Marketing at Northwest Community Credit Union ($620M, Eugene, OR) notes that their on-boarding call program for indirect members “establishes a good brand foundation for the follow-up and other efforts”. The outgoing calls to indirect loan recipients are never salesy; they are purely a call to personalize the lender in the car purchasing process.

  2. Branch Interaction – Many cross-selling and on-boarding campaigns begin with a phone call or other marketing piece. Here, the focus of the effort should be on getting members into the branch and starting a dialogue. It is much easier to build a relationship with a member face-to-face (it’s also more difficult to turn down offerings in person). What’s more, physically getting a member into a branch is important in establishing a comfort level with the financial institution, even if the majority of their banking activities are conducted through other delivery channels. Targeted on-boarding to those that live closest to branches will increase marketing success and ROI.

To see Matt Purvis’ discuss cross-selling to indirect members, watch this CUtv clip:


 

 

 

Jan. 26, 2010


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