Cross-Selling Tips for CUs

Cross-selling can dramatically increase sales volume, but many credit unions use techniques that are either inefficient at driving new revenue or not appealing to members. Use the tips below to refresh your approach to cross-selling ― and extract full value from the technology that supports it.

1. Show them you are paying attention. According to a Gallup report, about two-thirds of engaged customers say their financial institution does not personalize its marketing messages. More than half say they’ve received offers for products they already use. In our computer- and data-driven world, when it is realistic to personalize offers and track what services a member is already using, there is no excuse for taking such an impersonal approach. Many members now recognize this fact and expect more.
    
2. Mine your data.  It can be beneficial to track, analyze and mine data about members’ expressed needs and preferences. A CU and its representatives have numerous opportunities to collect this type of information. One method is using digital sign-in systems in branches. By having members quickly log into a computer at the beginning and end of each branch visit, important information about wait times and customer service satisfaction can be collected, organized and charted to provide a CU with constructive insights.
    
3. Check your data platform. As you evaluate data collection options, be mindful of the benefit you will gain through reporting and analyzing members' needs and salespeople’s efforts. For example, the lobby tracking solutions mentioned earlier can be extremely valuable for data mining, but only if they sufficiently analyze and report the information gathered. The software should also be able to display that information on a representative’s computer screen during member consultations.
    
4. Expand existing relationships. The easiest sales come from selling “sticky services” to current members. Direct deposit, bill-pay, automatic savings transfer, personal line of credit, and security solutions such as privacy protection are frequently used products that ensure members engage with your CU more often, affording greater rates of retention and enhancing the overall member experience.
    
5. Leverage existing networks. If you can incent existing members to share their enthusiasm for a new product or service with family, friends and co-workers, you can enlist them in your cross-selling efforts. Wireless carrier Sprint made big inroads in its customer base when it started its “Framily” plan, which lets friends and family get a discount when they all sign up for the same services. Take a hint from this approach, but use it instead to sell CDs, loans or financial consulting to an entire group of members.
    
6. Use all the digital communication technologies you can. When reaching out to your current member base, go beyond outbound calling. Craft and disseminate cross-selling messages via email, banner ads on your website, ATM messaging or text messaging.
    
7. Take an indirect approach. In addition to direct cross-selling, consider indirect mechanisms to engage and inform specific member segments and predispose them to your cross-selling messages. For example, posting targeted updates to digital channels with tips about home buying or renovation will help ensure your CU stays in mind when members look for a related loan.
    
8. Don’t forget the basics. No matter which tips you explore, always ensure that your cross-selling team is appropriately trained for their tasks. This includes understanding the finer nuances of cross-selling, including being enthusiastic without being overbearing and being attuned to any negative signals members send. Effectively using available technology and encouraging employees to stay professional and considerate are winning approaches for measurable results.
    

W. Michael Scott is president/CEO of Financial Management Solutions, Inc., a provider of business intelligence and performance management systems.

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