Over the past four years in the financial industry the term “cross-selling” has taken on a whole new level of disdain due to its use in questionable, and sometimes illegal, sales strategies by a few banks.
In uncertain times, this is the last thing people want to experience with an institution with which they are doing business. The top priority for virtually every bank is to recapture and deepen the trust that consumers have with banking institutions. So, how can banks best deepen their relationships with consumers and still sell their products and services without coming across as aggressive and pushy?
A highly effective alternative approach to “cross-selling” is “deep selling”. This approach focuses on discovering the needs and circumstances of an individual, educating them and giving them accurate recommendations that can improve their financial well-being. By taking this approach, your financial institution would play a more understanding and consultative role for the customer or member, thus deepening your relationship with them.
With the new, all-things-digital world due to COVID-19, consumers and businesses still want to be heard and feel listened too.
57% of respondents said the best customer experience is when they feel listened to and heard. Now, they are looking for that experience online or over the phone.
Gladly 2020 Customer Expectations Report
Deep selling can offer a personalized experience digitally, as well as in person and call centers. With AI-driven technology infused with behavioral economics, your FI’s website or employee can provide customers and members a full range of accurately recommended products that meet their needs. Take Airbnb for example, the company recommends sites of interest, restaurants, and other things near the lodging it rents to consumers. These recommendations are given based on what the company knows about the consumer, but they are not forced upon them.
Not only will this approach help the financial institution grow wallet share, but customer satisfaction as well. Banks that are deploying a customer needs-based engagement strategy are seeing as much as a 40 percent improvement in customer loyalty.
With the proper tools, deep selling can be an elegant solution resulting in a seamless and personalized customer experience. Customer Engagement Management (CEM) technology uses AI and advanced analytics to guide conversations with customers online, in-person or over the phone that lead to a perfect match of their needs with the FI’s products and services.
With powerful customer engagement tools, banks and credit unions are enabled to have the right dialogue that will lead customers to solutions that seamlessly meet their needs and improve the customer experience and financial well-being.
By better addressing customer needs, FIs can also improve retention, thus further driving deposits. For that customers are more likely to stay with a bank that is focused on helping them achieve their long-term financial goals.
Needs-based customer engagement (aka, deep selling) can be a successful strategy for banks and credit unions, especially those looking to grow deposits and improve customer retention. Allowing the customer or member take control of the sales process may seem scary at first, but it can bring a tremendous payoff for your FI and the customer.
Give us a call to see what deep selling with CEM could look like for your financial institution.
