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Cross-selling is the means for banks to increase revenue and improve customer experience with digital banking by offering tailor-made products or services to their existing customers. According to a report by McKinsey & Company, cross-selling can increase customer retention by 30% and increase profits by up to 40%. By identifying customers’ needs and preferences, banks can create personalized offers, adding value and enhancing the customer experience.
Ways in which Cross Selling can be impactful in banking
A study by Accenture found that customers who are offered customized products or services are four times more likely to remain with their current bank. Here are the ways banks can leverage cross selling to escalate customer experience big time:
Knowing customers more than ever
Banks can understand their customers’ needs and preferences to offer relevant products and services. Data analysis help banks to gain insights into customer behavior and identify patterns used to create personalized offers.
Drawing a comprehensive customer profile
Banks can create a comprehensive profile of their customers including their financial history, transaction patterns, and other relevant information. This helps banks to offer products and services pretty much relevant and valuable to their customers.
Personalized offers served as per the customer
Banks can offer personalized offers tailored to customers’ needs and preferences. By analyzing customer data, banks can identify opportunities to cross-sell relevant products and services relevant to individuals.
Customer-focused offerings as a bundle of
Bundling products and services can be a powerful cross-selling technique. Banks can create packages to include multiple products and services at a discounted price, making it easier for customers to purchase multiple products at once.
Making cross-selling a part of the customer journey
Banks can integrate cross-selling into the customer journey by offering relevant products and services at key touch points. For example, banks can offer loans or credit cards when customers are looking to make a big purchase.
Provide one-to-one laser focused service
Banks need to provide exceptional customer service to build trust and loyalty with their customers. By providing a positive customer experience, banks can increase customer satisfaction and encourage repeat business.
Cross-selling can be a powerful tool for banks to transform customer experience and increase revenue. By understanding their customers’ needs and preferences, banks can create personalized offers by adding value and enhance the customer experience.
Factors to Consider with Cross-selling in Banking
Effective cross selling in banking requires appropriate strategies and practices that benefit both banks and their customers. To avoid appearing aggressive and solely profit-oriented, bank staff should adopt a client-centered approach and only offer bundled products that are relevant and useful to the customer.
Personalization is key to successful cross selling. With access to abundant customer data, banks can track purchase history, payment behavior, channel preferences, and borrow data to identify relevant and timely product recommendations. By leveraging accurate and consistent customer data, bankers can anticipate customer needs and offer more value, creating a personalized and customer-centered approach that helps build trust with clients.
Empowering customer-facing staff is crucial to achieving customer satisfaction. Staff should have easy and quick access to customer information that enables them to make relevant cross-selling suggestions. With accurate data, bankers build trust with customers, making cross-selling process smooth and simplified.
Banking customers now interact with physical branches less frequently than in the past. This helps maintain customer connections and makes cross selling easier since customers feel more connected to the bank.
Cross selling has the upper hand as compared to upselling, since customers are offered relevant products or services pertaining and relevant to what they are using. There is an awareness among existing customers regarding the extensive range of financial instruments a bank is offering or is about to offer.
Advantages brought about by cross-selling in banking
Cross-selling in banking can bring several benefits with something like Liferay fintech integration been implemented:
By offering additional products and services to existing customers, banks can increase their revenue without incurring extra customer acquisition costs.
Improved customer retention
By providing a comprehensive suite of products and services, banks can improve customer satisfaction and loyalty, leading to increased customer retention.
Enhanced customer experience
Cross-selling can help banks to better understand customers’ needs and preferences, enabling to offer more personalized products and services.
By diversifying revenue streams through cross-selling, banks can reduce their reliance on a single product or service, reducing the risk of financial loss in the event of economic downturns or changes in the market.
By cross-selling multiple products and services to a single customer, banks can streamline their operations and reduce administrative costs.
Cross-selling can help banks differentiate themselves from their competitors by offering a more comprehensive suite of products and services.
Cross-selling can bring significant benefits to banks, but it should be done in a way that is ethical and transparent, with a focus on providing value to the customer, with something like Liferay banking solution. Banks should prioritize preferences of customers and ensure they are not being pressured into purchasing products or services they do not need or want.
Practical Use Cases of Applying Cross Selling in Banking
Here are practical examples of how banks can do cross-selling, something every Liferay consultant would suggest:
- If a customer frequently makes large purchases, the bank can offer a credit card with a high credit limit.
- If a customer has a high balance in their savings account, the bank can offer an investment product with higher returns.
- A bank can offer a package that includes a checking account, credit card, and investment account, all at a reduced rate.
- The bank can offer a referral bonus or a discounted interest rate on a loan.
- A checking account can be offered an upgraded account with additional benefits, such as higher interest rates or waiving the fees off as a privilege.
- Offering a personal loan when a customer is making a large purchase based on transactions.
- Helping customers to better understand finances, banks can identify additional products and services beneficial to them.
It’s important to note that cross-selling should always be done with the customer’s best interests in mind, especially with a Liferay consulting partner guiding you. Banks should focus on providing value and building trust with their customers, rather than just trying to increase sales.
How can Liferay banking solution be optimally used for cross-selling?
Liferay is an open-source enterprise portal platform that offers a range of products and solutions to meet the needs of different industries. Here is a detailed overview of Liferay’s products and its impact on the banking industry in particular:
Liferay Digital Experience Platform (DXP)
Liferay DXP is a comprehensive platform that enables organizations to create custom digital experiences for their customers and employees. It offers a range of features such as content management, collaboration, personalization, and workflow automation.
In the banking industry, Liferay DXP is used to create customer portals, provide self-service options, and streamline internal processes. So, imagine a bank having separate portals for every department, through which people within those departments can serve customers in no time through that respective portal only.
Liferay Commerce is an e-commerce platform that enables organizations to create online stores and sell products and services directly to customers. It offers a range of features such as product catalog management, shopping cart, order management, and payment gateway integration.
Although, it may seem Liferay Commerce not having a significant impact in the banking industry, it is used to create online financial products stores, providing personalized shopping experiences, and integrated with social media platforms. So, imagine banks getting all their similar financial products sorted and up for customers into a one-stop ecommerce shop.
Liferay Analytics Cloud
Liferay Analytics Cloud is a cloud-based analytics platform that enables organizations to track customer behavior, analyze data, and gain insights into customer preferences and trends. It offers a range of features such as data collection, data visualization, and machine learning.
Liferay Analytics Cloud has a significant impact in banking as it is used to track customer journeys, optimize marketing campaigns, and measure ROI. This means all the historical data related to customer visits, activities, buying patterns, queries, and all other interactions stored on cloud for banks to look back and make decisions.
Liferay DXP Cloud
Liferay DXP Cloud is a cloud-based hosting platform that enables organizations to deploy and manage their Liferay DXP instances in the cloud. It offers a range of features such as automatic scaling, high availability, and security monitoring.
Liferay DXP Cloud in banking can be very beneficial as it is used to ensure compliance with regulatory requirements, reduce downtime, and improve disaster recovery. This also means banks can have their data storage scaled to unbelievable measures with backup always available to recover from unseen disasters, power losses, hacks, or other calamities.
Liferay’s range of products and solutions has a significant impact on a wide range of industries. Its comprehensive digital experience platform, e-commerce platform, analytics platform, and cloud hosting platform enable organizations to create custom solutions that meet their specific needs and achieve their business goals.
The Role of a Liferay Consultant in Helping Banking Institutions
Liferay is a popular open-source enterprise portal platform that offers a wide range of features and capabilities to help organizations develop custom digital solutions. The banking industry can benefit from Liferay’s functionality to improve customer experiences, streamline internal processes, and increase operational efficiency. A Liferay consultant can provide specialized expertise and guidance to help banks leverage the platform to achieve their goals.
Here are some ways a Liferay consultant can help in banking:
Customer experience: Banks can use Liferay to provide a personalized and seamless experience to customers across multiple channels such as web, mobile, and social media. A Liferay consultant can help banks design and implement portals and websites that offer a user-friendly interface, intuitive navigation, and personalized content.
Liferay can integrate with other enterprise systems, such as CRM, ERP, and payment gateways. A Liferay consultant can help banks integrate these systems with Liferay to streamline processes, reduce redundancies, and improve data accuracy.
Banks are subject to stringent regulatory requirements regarding data security and privacy. A Liferay consultant can help banks ensure that their Liferay portals comply with security standards such as PCI-DSS, HIPAA, and GDPR. They can also provide guidance on implementing security measures such as SSL encryption, two-factor authentication, and user access controls.
Workflow automation: Liferay offers workflow automation capabilities that can help banks automate repetitive tasks and reduce manual errors. A Liferay consultant can help banks identify processes that can be automated and configure Liferay accordingly.
Liferay’s collaboration features, such as document management, discussion forums, and wikis, can help banks improve internal communication and knowledge sharing. A Liferay consultant can help banks set up collaboration tools and train employees on their use.
Mobile support: With the increasing use of mobile devices, banks need to offer mobile-responsive portals and apps to their customers. A Liferay consultant can help banks develop mobile apps and configure Liferay to support mobile devices.
Liferay portals can become slow and unresponsive if not optimized for performance. A Liferay consultant can help banks identify performance bottlenecks and optimize Liferay’s configuration, caching, and database settings.
A Liferay consultant can help banks leverage Liferay’s features to improve customer experiences, streamline internal processes, and increase operational efficiency. By working with a Liferay consultant, banks can develop custom solutions that meet their specific needs and achieve their business goals.
When it comes to cross-selling, banks need to learn and speak the language of their customers. Using simplicity and robustness of Liferay platform, a Liferay consultant enable financial institutions such as banks to have banking a smooth sail to deal with. Most customers have little understanding of banking terminology, and complicated language in cross-selling messages can be irritating.
Hiring a Liferay Consultant can help a financial institution make the optimum use of Liferay products to not just refine customer experience but make it even better for customers to know a bank closely than ever by learning about its offerings and terminologies. This is really the key as a study by the Harvard Business Review found that customers who use multiple products from a single bank are more profitable than those who use only one product.
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