SALES MODEL IN

FINANCIAL PRODUCTS

DSA/DMA, CASA STRATEGY, CROSS SELLING,

PRIORITY BANKING
 DSA/DMA : Direct selling Agent/Direct
Marketing Associates or Agent
• A Direct Selling Agent or DSA is a person who works as a referral agent for a bank or NBFC. The job of a
DSA is to find potential customers for the bank they represent. To do this, DSAs will look for people who
are in the market for a loan. This payout is a percentage of the type of loan and the loan amount.
• DSAs are authorized to sell banks products to customers on commission basis.
• In the primary responsibility of the Banking Direct Selling Agent/Representative is branch management
and in-branch services, teller and platform services, financial product sales, customer services, and
management of lending risk to retail customer base. He builds a client base for banking direct sales
through prospecting, networking, and referrals.
Role of DSA/DMA in banks
The role of DMA/DSA is :
• To collect the detailed information about the customers
• Generate a database,
• Create awareness among customers, educate them about various user friendliness systems for availing
banking products and services
• Aware them about various products especially designed and offered considering need of targeted prospects.
• Develops new business prospects in specific geographic areas through cold calls.
• Interacts with existing customers to increase sales of the bank’s products and services.
• Shortlists potential clients and brings them to the bank which is a major benefit in the competitive environment
in the industry.
• Keeps a constant eye on the competitor products in the market giving a better idea to the bank of the market
trends and requirements.
Benefits of DSA in banks
• Customers who approach bank through a DSA are easy to be addressed in the bank as the DSA has
performed preliminary verification and registered the needs of the customer
• The customer has a better knowledge on the product; as to what he needs out of the various products
offered by the bank.
• DSA also helps customers with after sales queries.
Cross Selling – Concept & Strategy
Selling of banks products/services to an already existing customer—is the broad definition of what cross sell
means. It can be selling an existing checking account customer a credit card or selling an existing credit
card customer a mortgage. Banks have been using cross sell as a marketing approach to expand their
footprint and also increase their customer base.
Successful cross-selling requires that banks understand what their customers need and that the bank keep
track of their interaction via phone banking, web, walk in, etc.
It considerably reduces customer acquisition costs, servicing, and marketing and communication costs and
thereby substantially increases spread for banks. Also, greater the number of products held by customer
leads to an increase in customer retention.
Cross Selling – Concept & Strategy
• Cross-selling is a marketing device used to increase sales by displaying products to the customers that
are closely related to the product he or she is interested in purchasing. It allows the business to promote
similar products that the customer may not be aware of, or offer a complimentary product that the
customer may be interested in as an impulse buy.
• Cross selling is based on personal relationship, which is built slowly with the customer.
• Cross selling proved to be a significant tool for increasing their profits and sales. Banks started offering
various additional and relevant products to their existing customers such as credit cards, insurance
products, mutual fund plans, Govt. securities etc.
Cross Selling – Concept & Strategy
• Cross- selling considerably reduces customer acquisition cost and also serving, marketing and
communication costs and thereby substantially increases the profit earning capacity of the concerned
unit. Further, through cross-selling the benefits of economies are also available which reduces the cost
further and increases the profit margin. Another additional advantage is that cross selling helps in building
brand value, if the loyalty of the customer could be ensured for the brand.
Cross Selling –Strategy
The banks may take some of the following steps –
 Preparation of data base:- The bank should collect the required data and prepare the data base of customers. The required information can
be collected from the concerned customer when he comes to the bank for opening an account in the bank. It is the data base of customers on
which the entire exercise of cross-selling is based. With the data-base banks can assess the credit worthiness of the customer with more
accuracy. Moreover, it is easier and cheaper to get customers from one's own data- base than going out for getting new customers.
 Identification of Customer:-On the basis of data-base and bank's relationship with customers, possible customer for cross-selling should be
identified. In the same way the product should be identified which can be offered to the customer.
 Selecting target customers:- After identification of possible customers, the targeted customers should be selected and efforts should be
made to narrow down the product-range. If required, even new products may be developed to meet the specific need of the group of
customers.
 Proper Training to Staff:- Proper training should be imparted to the staff entrusted with the task of cross-selling. It not only creates team spirit
but also enables the staff to meet the customer's needs in a better way. It also enables them to understand the complexities of product and to
identify the appropriate product to suit the specific requirement of the customer.
 Proper selection of tools - Based on the market size, tools selected for targeting the customer also matters. For large banks with large
number of customers tools may be CRM (Customer Relationship Management), Profitability Analysis, Complete Activity Management,
Information Support System, etc. Effective and economical tools should be selected keeping in mind the market size, customers' preferences,
etc.
Cross Selling –Strategy
 Motivation and Incentives- Having proper tools and systems to cross-sell does not end the process of selling. Getting the bank
employees involved in this exercise and motivating them to sell is also an important aspect. It is important for banks to provide reward
for the cross sale that is commensurate with profitability of the product to the bank. Efforts should also be made to involve the staff in
coming out with innovative campaign and also ideas which will stimulate them to sell newer products.
 Cross-selling as a part of employees' appraisal - As an initiative for employees involvement for cross-selling, cross-selling can be
made a part of an employee's performance appraisal along with monetary and non-monetary rewards for employees.
 Periodical Analysis of Data-Base - Cross selling is a continuous process. In order to make cross-selling success, not only to complete
customer data should be maintained but it should also be analyzed periodically so as to ascertain the number of customers visited the bank
during a particular period, how many of these customers did the sales representative meet, in how many of these meetings was a cross-
selling opportunity identified, how many of these were referred and what was the outcome of these referrals. This process enables the bank
management to set objectives, monitor performance and take necessary action to make cross selling more effective and successful.
 Effective Delivery of the Product - Every possible effort on the part of the bank should be made to ensure the timely and proper delivery
of the product purchased by the customer. The more relationships a bank has with a customer, the more loyal the customer will be and the
bank will be able to know more about the customer through these relationships. The credit quality of the customer can be assessed in a
better way. At the end it will be a win-win situation for both the banks and customers. However, bank management should exploit this
situation carefully keeping in mind the overall profitability of the bank.
Cross Selling : Benefits
BENEFITS TO BANKS:

• Under cross-selling existing customers are approached and cost of approaching existing customer is much less than acquiring new
customers.

• It reduces per customer cost and increases the per customer earning. Benefits of economies are available which reduces the cost further
and increases the profits.

• It helps in building the brand value, if the loyalty of customer can be ensured for the brand. In that case the likelihood of shifting the
business dealings by the customer to another bank is reduced substantially.

BENEFITS TO CUSTOMERS:

• The major benefit to the customers from cross selling is that they get all their financial needs fulfilled at one place. For example a bank
customer can fulfill his banking, insurance and mutual fund needs from the same bank.

• Customers get the opportunity to opt any other bank which proves to be more trustworthy for them.

• Cross selling helps in building a good relationship between customers and employees because both bank and bank customers are well
acquainted with each other.
CASA Strategy In Banks
CASA stands for Current Account and Savings Account .
CASA deposit is the amount of money that gets deposited in the current and savings accounts of bank customers. It is the cheapest and
major source of funds for banks. The savings accounts portion pays more interest compared to current accounts.
The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit. 
• If the CASA ratio is higher than it means that a higher portion of the deposits have current and savings deposit. This means that the
bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is
usually low.
• In India, interest rates paid on current and savings account deposits is administered by banking regulator – the Reserve Bank of
India.
CASA deposits are crucial to a bank’s health because they are the cheapest source of funds for banks.
Banks with a high CASA ratio are considered stronger.