Cross Selling

Cross-Selling ???
The strategy of pushing new products to current customers based on their past purchases. Cross-selling is designed to widen the customer's reliance on the company and decrease the likelihood of the customer switching to a competitor. Say for a Legal Firm : the affirmative, ongoing process of anticipating your clients legal needs so that you can maximize the services you and other members of your firm provide for those clients and, thus, enhance client retention.
CUSTOMER RELATIONSHIP MANAGEMENT -PGDM TERM IV PROF. MOHAN B.RAO FOR RESTRICTED CIRCULATION ONLY
2011
But there are some obstacles that make cross-selling difficult
Obstacle 1: Complex Products Hard-to-understand rules and various options can leave consumers perplexed, annoyed, and uncomfortable. Various marketing studies have shown that giving consumers too many choices turns them off as much as not giving them enough. The key is to make the process or product simpler for the customer. You can easily simplify the complex with a business rules management system.
2011
obstacles that make cross-selling difficult
Obstacle 2: Customers Don't See the Benefits of One-stop Shopping

.. because as a whole, customers are more concerned about getting the best deal and are willing to go to multiple companies to get them. In fact, studies in the United States indicate that a typical bank customer has 7 relationships and that no more than 4 are likely to be with one financial institution. There are several solutions . You could decide to just focus on your strength products and not be everything to everyone, or you could start a proactive education campaign to educate your customers on the benefits of one-stop shopping.
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Obstacle 3: Inadequate Information on Customers it's often impossible to know the true needs of the customer. Throw in the challenge of merging tons of data from numerous mergers and acquisitions and you have a customer data nightmare. Solutionyou do have control over how to best maximize your existing data stores. There are several methods to achieving a single data store of synthesized customer information. With the data it provides, you'll be better prepared to identify sales opportunities within your existing customer base..
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Obstacle 4: Lack of Sales Training on the Front Lines "The person in the bank doesn't always have the skills to properly sell various products and services." Solution is to use a business rules management system One use of business rules management is to provide field staff including sales and customer service with the information they need to recognize sales opportunities and act on them. This solution eliminates excessive training as the company knowledge is captured within the software.
2011
Obstacle 5: Lack of Personalization in Marketing . Mass marketing is often expensive and ineffective. Open rates, response rates, and cost per lead are often measures that improve the more targeted your communication. Solution. how much more effective and fruitful your marketing would be if you cpersonalize all communications and time them to reach the customer right when they are most in need of it. But most companies haven't figured out how to do it.
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Obstacle 6:Cultural issues at companies are the prime hindrance . Consider the persistent conflict between the Internet, store and sales channels at many companies.
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Successful cross-selling demands
3 essential technological and cultural requirements:

A comprehensive database detailing the
purchasing activities of each customer; A company-wide dedication to cross-selling led by senior executives and demonstrated by incentives to encourage employees to share data and the discipline to measure results in real time; A computerized delivery system to generate and distribute sales leads throughout the company..
2011
One solution is use marketing automation software.
It captures and analyzes customer data that can then be used to design, execute, and measure the effectiveness of marketing campaigns. According to research and consulting firm Doculabs, marketing automation: Accelerates customer acquisition Improves customer retention and value of existing customers. Refining marketing strategies in real-time ..and finally.Reducing cost
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Next solution is to achieve a 360 view of customer
Successful customer strategies are built on a clear understanding of product economics and personal behavior. Meaning you know when, where and how customers interact with your company. You know what methods they prefer, what they like to buy in what situation, and how they value each of their experiences with your company. Ideally, you would know this not just about each customer segment but also about each customer individually.
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The Answer

The Single Customer Data Store This is a single location for synthesized customer information. It can be a wholly separate system or one that pulls information from multiple sources. Without it, the functionality that CRM offers will be difficult to achieve.
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Benefits of a single customer data store
The Sales Factor

the better prepared they are to develop new
products and to identify sales opportunities. facilitate cross-selling. use customer-centric information to retain the assets of customers by providing products and services to meet their changing needs.
The Savings Factor

reduce expenses and duplication of work. companies can also consolidate mailings and other customer communications. .
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How to have 360 View of Customer
You need a customer-oriented data system that creates customer information files or CIFs. You can develop a customer profile system in a number of ways:
Start over and buy a full CRM system Create a data warehouse
Write a custom application

Purchase a commercial data integration technology
Purchase a data store.

Incorporate XML tagging to your existing systems .
Web services.
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How do you cross sell?
Look for opportunities.

Does the customers background information give you any
idea about how else you can be of service?
Listen for opportunities.

Does the customer say something that gives you an idea
about how you might be able to better serve?
Create opportunities.
further serve the customer through cross-selling? Well, thats the chance to create an opportunity! Forget about the sales you hope to make and concentrate on the service you want to render. Harry Bullis
What if you dont see or hear any clues about how you can
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cross selling is profitable
In a 2001 study, Harvard Business School professors Robert S. Kaplan and V.G. Narayanan examined the marketing adage that 20 percent of customers provide 80 percent of sales. Their conclusion: Not only is that ratio on the mark, but 20 percent of customers also account for well over 100 percent of profits. Therefore cross-selling is a profitable approach, particularly when a tough economic environment is making consumers finicky..
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Why cross selling never took off in USA
According to Gartner Inc, nearly 75% of all businesses say they have cross-selling programs, but as many as 70% of such efforts fail to increase revenue in any significant way, Main reason: Lots of corporations spent the 1990s acquiring customers, but integrating the companies and divisions involved in these deals and finding the synergies that will lead to cross-selling was tough. Instead of cooperation and data-sharing among business units, information silos emerged. And in the process, individual business units have grown in influence.
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Now
Cross-selling is finally being put to the test by many companies, especially those in the financial-services, telecommunications, high-tech and services industries. As the economy has shrunk, the value of existing customers has increased; they're one of the few avenues for revenue growth companies have. At the same time, it's almost impossible for a consumer to stay anonymous anymore. Shopping on the Web, call centers and third-party firms that collect virtually every transaction from hundreds of companies have vastly increased the amount of information available about individual customer activities and preferences .
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Therefore
Cross-selling's inroads have come in the wake of increasing disenchantment with customer relationship management (CRM) systems In a 2002 survey of 23 users of CRM software from Siebel Systems by analysts at Nucleus Research Inc., 61 percent said they had not yet achieved a positive return on investment after at least two years with the technology. Typically, CRM systems just look at data from a historical perspective, By contrast, cross-selling at its best depends on a forward-looking, even predictive technology.
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What do cross selling software offer
Most cross-selling systemswhether proprietary or from PeopleSoft, Knowledgebase Marketing, Siebel, Market Soft or any of the other suppliersoffer dynamic, macro-based programming approaches that respond rapidly to changing business conditions and avoid the monthslong programming efforts that traditional IT departments require.
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At ICICI Bank
`Cross-sell is the real mantra', says Mr Amitabh Chaturvedi, Head - Retail Liabilities and Channel. Currently, in cross selling, the average product per customer is hovering at around 2.2. We intend to make it four during the current fiscal. Revenue focus will be more than customer focus.
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At HDFC Bank Aditya Puri MD said
It envisaged high growth in the retail sector through cross-selling of products of group companies. They are offering housing loans linked with insurance plans. The product offers a life cover according to the outstanding of the housing loan. HDFC Bank would offer the HDFC housing loan customer free international credit card for a year and lower minimum balance requirement for their savings accounts. Further it would also grant personal loans at about 1 per cent lower interest rates than other customers. Auto loans would be cheaper by a quarter of a percentage point.
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Finallya user in US says..
"In industry after industry, handling an account for the long haul wasn't a priority..there was too much money floating around and too many customers willing to spend it. So a company would install a CRM system and think that's enough spent on keeping customers happy. It wasn't. Now companies have to learn again how to manage customer relationships.. People dont care how much you know until they know how much you care.
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How does SAS drive organic growth through cross sell and up-sell opportunities?
COMPANYS GOAL: Increase revenue and profitability through organic growth For most companies, selling to existing customers is the only way to achieve sustainable growth. And establishing a repeatable, closed-loop marketing and sales process is essential to increasing revenue growth and profitability and improving return on assets. Unfortunately, most companies spend more time planning how to market their products and services than actually marketing them. This results in a company centered, product-based approach that overlooks trends in customer behavior and the resulting growth possibilities.
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The immediate problem for many companies is that identifying opportunities to improve the profitability of certain customers is a struggle. However, the real challenge is often much bigger. Once you have identified opportunities through segmentation and behavior analysis, you must deliver the most appropriate offers through the right channels and then measure the results so you can make improvements in future campaigns and customer interactions.
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Challenges Lack of new opportunities. No fast, reliable way to identify new opportunities for organic growth. Fragmented customer information with no closed loop. Line-of-business silos make marketing cumbersome, and customer information is fragmented.
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Challenges. Inability to communicate leads. No automated way to pass leads to customer-facing points of contact (e.g., call centers, the Web and individual sales representatives). Inconsistent measurement. With no way to measure campaign results, improving them in the future is difficult. No way to connect products to customers. Theres no system for matching products to the customers most likely to use them.
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SAS APPROAC H Identifying profitable cross-sell opportunities is only the beginning of the process. I f you cant effectively segment your customers and match them with the right offers, all that potential revenue will be lostalong with your customers. SAS approaches this problem by delivering software and services that help :
1.
Identify cross-sell/up-sell prospects, using detailed segmentation and profiling techniques to gain a better understanding of customer behaviour.
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2.
3.
4.
Connect offers to the right customer segments, using automated campaign planning to pull more relevant, intelligent, predictive lists and then pair that information with knowledge of the right opportunities. Efficiently execute campaigns, using alerts and event-driven execution to ensure that you make the most relevant offer to the most potentially profitable person at the most opportune time via the most appropriate channel. Measure campaign response rates to gauge the effectiveness of your campaigns and determine the need for midstream adjustments or alterations to future campaigns.
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THE SAS DIFFERENCE: A closed-loop process to improve cross-sell revenue

Gain a unified, integrated customer view by pulling together customer data from all touch points and channels across the organization into one place. B. Create accurate customer segments using demographic, geographic, attitudinal and behavioral data to group customers with similar attributes, needs and wants. C. Uncover new revenue opportunities using predictive analytics to forecast expected customer behavior, so you can flag those customers mostor least likely to respond to a promotion or identify at-risk customers before they leave.
A.
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THE SAS DIFFERENCE: A closed-loop process to improve cross-sell revenue

D.
E.
Automate campaigns that include timely, personalized customer communications across multiple channels without sacrificing the depth and sophistication that is essential for effective marketing. Understand the results of your marketing activities and share the results via Web-based reportingby monitoring customer response at all touch points and analyzing changes in customer behavior.
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INFOSYS--Approaches for Cross selling
Person based approach. Rules based approach Value based approach. Predictive- analytical based approach. Social networking based approach.
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INFOSYS- Analytics in Cross selling
REPORTING
TEXT ANALYTICS
CROSS SELING
BUSINESS INTELLIGENCE
PRE-DICTIVE ANALYTICS
DATA MINING
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INFOSYS- Cross selling solutions

Home grown or assembled solution.
CRM solution. Point solution.

Channel specific solution.
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Cross Selling

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Cross Selling

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Cross-Selling ???

But there are some obstacles that make cross-selling difficult

obstacles that make cross-selling difficult

Obstacle 2: Customers Don't See the Benefits of One-stop Shopping

obstacles that make cross-selling difficult

obstacles that make cross-selling difficult

obstacles that make cross-selling difficult

obstacles that make cross-selling difficult

Successful cross-selling demands

3 essential technological and cultural requirements:

One solution is use marketing automation software.

Next solution is to achieve a 360 view of customer

Benefits of a single customer data store

The Sales Factor

The Savings Factor

How to have 360 View of Customer

Write a custom application

Purchase a data store.

How do you cross sell?

Look for opportunities.

idea about how else you can be of service?

Listen for opportunities.

about how you might be able to better serve?

cross selling is profitable

Why cross selling never took off in USA

What do cross selling software offer

At HDFC Bank Aditya Puri MD said

Finallya user in US says..

THE SAS DIFFERENCE: A closed-loop process to improve cross-sell revenue

THE SAS DIFFERENCE: A closed-loop process to improve cross-sell revenue

INFOSYS--Approaches for Cross selling

INFOSYS- Analytics in Cross selling

INFOSYS- Cross selling solutions

Home grown or assembled solution.

CRM solution. Point solution.

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