Better Cross Sell Through New Analytics
The risk and marketing groups at a large regional bank sat down with us the other day to review a cross-sell approach being discussed by their product groups. For years the group had been leveraging our platform to cross-sell credit cards to customers looking to open DDA accounts. While our technology facilitated the solution admirably, the bank felt that they might be leaving some money on the table.
The bank wanted to increase cross-sell revenue while creating deeper relationships with their client base. They were restricted in that they could not increase the current work load. And they dared not risk aggravating customers by offering products that hadn’t been asked for and weren’t appreciated (see “sleeping dogs” for more information).
At their request we explored what would happen if the bank integrated a second product into the strategy. What we found is that by adding home equity (offers?) on the customers with the highest propensity to purchase, cross-sell profit would double. We were able to determine this from our position as their technology provider (giving us transactional visibility), as their credit data provider (giving us the broader perspective), and as the analysts most familiar with the data in question.
Increasing revenue isn’t an uncommon goal, but looking to break down traditional silos is a new step in the banking community. Seeing that better cooperation would lift all boats made the conversation go smoothly and all parties are currently engaged in seeing how we can make this statistical gold mine bear real fruit.
We discussed the necessary components in next best offer vs. next best action, but the elements deserve repeating. The right data on the customer is needed; the right analytics have to show purchase propensity; the right technology has to exist to bring the right product forward at the right time; and the right feedback loop has to make sure the analytics keep getting smarter. The time is ripe for better relationships between customers and their banks; the question remains whether you are doing all you can to make it happen.
Send us a note if you want to know more about this example or if you would like to see if we can find some gems in your cross-sell effort.
If you want to talk to an Equifax specialist about managed offer services, please send us an e-mail.
If you are interested in a monthly e-mails about blog updates, sign up for our newsletter
This post was contributed by:
Recommended For You
It’s the simplest strategy to boost revenue potential: Offer the right customers the right product at the right time at […]
It is no revelation that the Consumer Financial Protection Bureau (CFPB) wants to ensure that banks and credit unions are […]
Virtually all economists are in agreement that interest rates are on the rise. In response, bank deposit pricing, acquisition, and […]
CBA Live March 23-25, 2015 Hilton Orlando Bonnet Creek Equifax will present the following pre-conference sessions and forums at this […]