Every bank has its own logic of how many relationships it would like to have

Every bank has its own logic of how many

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marketing approach to expand their footprint and also increase their customer base. Every bank has its own logic of how many relationships it would like to have with its customers. It can be 1:2, 1:3, etc. The more relationships the bank has with a customer is tantamount to one having a better wallet share of the customer. More spends on all the products of the bank leads to better top- and bottom-line performance. Conversely in pursuit of selling newer products to existing customers, banks tend to forget that profitability of a customer is very important aspect and just not addition of another product. If banks tend to attract customers with free checking in the hope of getting other business from those customers and if this does not happen then the purpose behind cross-selling is defeated. As well, some banks forget that the objective was profit—not a higher cross-sell. Many tactics merely increase cross-sell—not profit. Offering discounts for additional products and services, but at the cost of forgone revenue, results in losses. Banks in the past and some banks in the present also have been traditionally organized in product silos, with their own marketing and technology support. This has led to a soloed approach leading to less cross sell. Banks need to understand that it takes a great deal of time, effort and teamwork to successfully cross-sell beyond the traditional bank product set. Credibility and motivation are very important aspect here. The person interacting with the Clients needs to have an expertise on the subject and help the client in understanding and getting the right product. Based on the market size the tools required to target customers also matters. For large Banks with large number of customers, CRM, referral tracking, profitability analytics, easy-to-use referral and sales-call tracking systems; complete activity management, scalable and flexible agency management systems, information support systems are required. Along with the systems/tools effective training gives customer service IMDR Page 15
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VARIOUS TYPES OF PRODUCTS ARE CROSS SELL IN HDFC BANK: Under retail branch banking, it’s a good scope to earn money by cross selling the products. Under 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. At the time of selling a product the customers are told about the other product. For eg: if customer is applying for credit card he/ she is also told about different general insurance or if an existing user of investment is asking for insurance plan telling him about fixed deposit. One of the product which can be cross sell is PERSONAL LOAN. Personal loan- these loans are offered by most banks, and the proceeds may be used for virtually any any expense (from buying a new stereo system to payinf off a commonbill).
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  • Fall '17
  • Mahvish ali

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