cross-selling in the new era: a win-win for banks and customers
TRANSCRIPT
Reinventing the Wheel:
Bank cross-selling of the future
From “cross” to “right” selling
Customer expectations are rapidly changing, while digital-savvy new entrants are disrupting the banking industry
In this new era, banks need to consider a new sales paradigm to serve the financial wellbeing of their customers better and demonstrate their value as a trusted advisor
Banks do not have to abandon cross-selling; they just need to reinvent it
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Traditional sales models create four major challenges for banks in the new digital age:
SALES EFFECTIVENESS CHALLENGE:
Only 15% customers satisfied with front-office services
Only 20% believe incentive system is “fair” and “customer-oriented”
RETENTION CHALLENGE:
15% decrease in regional and/or national bank clientele
COST-TO-SERVE CHALLENGE:
Only 15% client base engaged digitally
BRANCH USE CHALLENGE:
87% anticipate using branches in the future
(Source: North America Digital Banking Survey) 3
In order to overcome these challenges, banks need to consider a new sales paradigm that focuses on:
QUALITY, NOT QUANTITY
Reorient sales effectiveness
to measure the value add for the customer
Adopt a scientific approach to
analyze customer information and identify sales opportunities
Redesign sales behaviors on
long-term relationships
with the customers
CUSTOMER DEMAND
LONG-TERM GROWTH, INSTEAD OF
“SHORT-TERMISM”
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BUILD NEW INSIGHTS
DESIGN NEW INCENTIVE PLANS
BUILD STRONG GOVERNANCE AND COMPLIANCE
CULTIVATE AN ETHICAL SALES CULTURE
Here are the four key steps to building this new sales paradigm:
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Create a 360-degree picture of their customers by aggregating all the different services, products, communications, interactions, and information the bank has with customers
Build processes and tools to train and educate frontline staff in how to interact with and engage customers
Enable an end-to-end customer management strategy that not only provides internal transparency to the sales process and pipeline, but also fosters team selling, enabling an enterprise wide management of the customer relationship
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Step 1: Build new insights and understand your customer
Step 2: Design new incentive plans
Accurate Target/Goal Setting – Individual sales targets should not be based on top-down or arbitrary targeting, but instead be driven by data and analytics and based on the customers’ needs, fit, and affordability
Appropriate Sales Incentives – Sales incentive plans should be designed to drive intended employee behaviors and preferred customer outcomes
Holistic Performance Management – Banks need to design a customer-focused sales performance management system based on the right set of sales metrics and incentives. It is the broader performance management system that drives total incentives, recognition, and reward decisions
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Monitor and measure the key steps in the sales process, from both the individual sales-person’s perspective and the individual customer’s perspective
Place compliance checks at all levels of the organization and transaction(s) flow
Assess viability of goal, validating authenticity of account(s), monitoring sales methods, and auditing unusual spikes in sales performance
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Step 3: Build strong governance and compliance
Foster a culture that instills the philosophy that sales goal achievement is secondary to ethically serving customer needs, and support this philosophy with strong governance and compliance from leadership throughout the organization
Include an understanding of the value of the customer and one that identifies the roles employees are expected to play in a team-selling environment
Reinforce basic principle by front-line, real-time coaching and communication, and should include clarity and transparency to customers and employees of specific values, such as: we are proud of our products, we can meet your needs, and we want to earn your business
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Step 4: Cultivate an ethical sales culture
Successful banks of the future will develop these three traits:
Balanced sales strategy that leverages corporate goals with customer satisfaction
Synchronized coordination between all channels involved in the customer journey
Extensive approach, which aligns HR with new customer-oriented focus in hiring, training, incentives
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BUILDING EMOTIONAL LOYALTY BASED ON MUTUAL TRUST
DEVELOPING VALUE PROPOSITION BASED ON VOICE OF THE CUSTOMER
UNDERSTANDING CUSTOMER INTENT
ADOPTING CUSTOMER’S PURPOSE
This new sales paradigm depends on:
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THEIR HOLISTIC AND GENUINE NEEDS WILL BE BETTER SERVED
CUSTOMERS WILL FIND A TRUSTED FINANCIAL ADVISOR IN BANKS
Reinventing the wheel of cross-selling is a win-win… for banks and customers alike:
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BANKS WILL DEVELOP A BETTER REPUTATION AND BUILD LOYALTY
BANKS WILL GROW FROM QUALITY IN SALES
ANALYZE OVERALL CUSTOMER EXPERIENCE THROUGH
MYSTERY SHOPPING
RUN A SENTIMENT ANALYSIS TO UNDERSTAND THE REAL
PERCEPTION OF THE BRAND
LEVERAGE INCENTIVES BASED ON ADVANCED ANALYTICS
RETRIEVE THE VOICE OF BUSINESS THROUGH INTERVIEW
AND CUSTOMER SURVEYS
Discover the Accenture’s “Sales Lab” to create your advisory model “genome” and focus on quality and sustainable growth.
For more information, contact Marc Mccollum at [email protected]
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Additional information
Read blog post: “Cross-selling in the new era: A win-win for banks and customers”
Read our point of view: “Selling in the Age of Distraction”
Learn more about Accenture Distribution & Marketing Practice for Financial Services
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