Cross-selling can be a crucial revenue-boosting tool when properly implemented. Credit unions that devise a well-defined strategy based upon proven techniques have the best chance of reaching their cross-selling goals. Fortunately, in today's technology-focused business environment, CUs have additional weapons at their disposal to help with cross-selling efforts.
The concept of cross-selling is deceptively simple: sell multiple products to members and increase their loyalty.
The problem is that the selling activity often is divorced from the reality of each member's needs. CU management decides which products its representatives should sell, and salespeople promote them on a blanket basis. Furthermore, budget-conscious CUs may not take the time to teach their sales representatives how to make the connections that are proven to help close deals.
CUs must take a comprehensive and methodical approach to cross-selling, incorporating proven strategies that leverage all logical resources for the effort. This approach includes collecting and making use of available data, such as sales representative success rates, member's expressed needs and desires, and more.
Cross-Selling Techniques That Work
Having analyzed the activities of hundreds of financial institutions, we have identified core techniques that can help CUs succeed with cross selling.
Use Strategic Data. Data is one of the most beneficial components of a cross-selling effort, as it helps CUs learn more about members and their needs. For example, systems that track lobby activity — capturing and analyzing information on members from the time they enter the lobby — can help identify their cross-selling program's problems and opportunities.
Having information about member interests and preferences enables representatives to match sales recommendations to member needs. Similarly, when CUs collect member assistance data, it helps management determine if sales representatives are taking an appropriate approach, as well as whether they are closing an appropriate percentage of sales opportunities.
Consultative Selling. Customer service has become a focus in many sectors, and the financial industry is no exception. This approach involves gaining a deeper understanding of members by truly listening to what they have to say, and assessing their particular situation before offering products and services. (Data collection and analysis is also beneficial here, to record information and retrieve it as needed.)
Consultative salespeople may take longer to close deals (a metric commonly tracked by CUs), but they are building relationships along the way that result in greater member satisfaction and loyalty. The goal is for each sales representative to be viewed by members as a partner in their success and satisfaction, not a stranger behind a name badge.
- Stay Connected. Credit unions that engage with their members early in their relationships and stay connected throughout their lifecycles have a better chance of cross-selling multiple revenue-producing products. A startling number of CUs still depend on members to onboard themselves. Institutions that do not make a concerted effort to connect through a variety of communication mechanisms are doing themselves and their members a disservice.
No selling effort can take place in a vacuum, and cross-selling is no exception. CUs should collect and analyze sales data as they tweak their programs. Manual collection and evaluation is possible on a limited basis, but the analytics that business intelligence software offers give CUs more comprehensive, targeted insights.
Finally, don't be afraid to adjust the program for better results. What works for one location may not work for others, and specific categories of members (such as families versus singles) may require specialized approaches.
Even with technology providing actionable metrics, cross-selling programs are marathons, not sprints. The value of the feedback loop cannot be understated. Management must continually evaluate results and take corrective action as needed, while sales representatives must embrace the virtue of personalized selling.
When personnel engaged in the cross-selling effort — from the management office to the lobby floor — assumes their roles with enthusiasm and uses relevant data to bolster their efforts, the result will be a winning effort that builds sales as well as member loyalty and satisfaction.
Patriot FCU Case Study
When the five-branch, $410 million Patriot Federal Credit Union recognized that poor reception and lobby flow threatened its operating philosophy "Living the Dream... Together," the Chambersburg, Pa., credit union took action, replacing its paper-based sign-in sheets with a technology-driven lobby tracker system. Sign-in sheets were too rudimentary, leaving staff guessing about members' needs.
The lobby tracker system, once implemented, met the goals of improved member reception and lobby flow, and also gave Patriot FCU the reporting capabilities to refocus its cross-selling effort. The credit union now uses cross-sell reports to view snapshots of member flow for a particular month, as well as detailed breakdowns by staff member including the total accounts assisted by a member officer.
These cross-sell reports aid in the coaching, training and development of staff, which has led to improved service and sales. "The reports have definitely helped our member officers improve their cross-sell ratio," says Darby Fritsche, director of member service. "Now our staff says to themselves, 'Before this member walks away, have I met all of their financial needs?"
W. Michael Scott is president and CEO of Financial Management Solutions Inc. (FMSI), a provider of business intelligence and performance management systems. He can be reached at
