describes different techniques and approaches for cross-selling. Examples of different sectors have been explained

1. Gaurav Sharma
Summer Intern
Goa Institute of Management

2. “Practice of selling or suggesting related or complimentary products to a
prospect or customer”
 A research study by Deloitte & Touche uncovered that the odds of selling a
product or service to a new customer are generally about 15%, whereas the odds
of a sale to an existing customer are 50%

3. Buyer :“I
would
like to
buy a
laptop”
Salesman
shows few
models
Buyer : I
will buy
this dell
5000 series
laptop
Salesman :
“would you like to
buy pen drive,
hard-disk or
speakers with the
laptop?”
A laptop seller offering a customer a
mouse, pen-drive, and/or accessories
CROSS
SELL
Anuj, an
unmarried 25
years old, buys a
protection plan
Say,5 years later,
the agent offers
him a child
education cover
2 years later,
agent offers him
a retirement plan
Example of a Life Insurance company

4. Cheaper than Acquisition
It’s 5-6 times1 more costly to acquire new
customers than to sell additional products to
ones you already have
Improves retention
By adding just one more product, you can
extend the relationship
Increases Wallet Share
how much of the customer’s assets are held at
the same institution
Cost
Effective
Reduces
Customer
Attrition
Grab Lion’s
Share
Overall customer satisfaction
Customers get all the solutions for their needs
at one stop
Increases
customer
satisfaction

5.  More than 70% of HDFC Bank's credit card portfolio is now from cross-selling
(URL)
 SAS, combined with the bank's CRM solution, helps HDFC Bank model its customer
data and assign propensity to buy, spend and (for credit and debit cards) activate
 The correct product for cross-sales promotion is identified using the customer profile,
life stage and behavioral dynamics
 Provides 360 degree view of the customers
 Cross selling models, specifically for financial services sector companies, are not
public

6. Person
based
Rule based
Predictive
Analytics
based
Social
Networking
based
Levelofanalytical
sophistication
Emphasis is to
elicit the need
through Customer
interaction.
Usually done by
the representative
through structure
question based
approach.
People’s likes,
dislikes, social
networks ,
preferences,
recommendations
from network are
analyzed. Not yet
prevalent
Models are created
to predict
customer’s future
behavior. Uses
customer past data
to make
predictions
The system defines
some rules and
uses the customer
information to
arrive at the cross-
sell offer. Some
analysis of the
customer data is
done.

8. Predictive Analysis
Propensity-to-buy
analysis
what a
particular
customer
might buy
NextSequential
Purchase
predicting the
customers
next buy
ProductAffinity
Analysis
which
products will
be bought
with others
Customer Lifetime Value model
(CLTV)
Predicts customer lifetime value
CLTV is based
• on the revenue that the customer
brings in to the company
• the cost of maintaining the
policies
• the cost of retention
• the likelihood of the customer
surrendering the policies soon.
Which customers
are most likely to
purchase another
insurance policy?
What type of
insurance are those
customers most
likely to purchase?
When are those
customers most
likely to purchase
that insurance?
Customers with the
highest purchase
propensity may be
targeted first
A cross-sell model that could enable FG to answer three key questions while executing cross-sell campaigns

9.  Capgemini uses a Product Propensity Index (PPI), a set of approximately 14
quantitative models that segment customers on behaviors and identifies each
customer’s current propensity for the financial institution’s product set. By
considering a customer’s product propensity, attrition likelihood, and predicted
lifetime value, an offer is identified that is both.

10.  Capgemini. (2012). Customer Cross-Sell.
 Christian Hagen, M. H. (2009). Technology : The insurance sector pivot point. A.T.Kearney.
 Deloitte. (2014). Insurance Analytics : Driving insight to gain advantage.
 Eric SImson, M. P. (2004). Analytics in insurance GENPACT. Everest group.
 Genesys. (2010). Customer Service strategies for the insurance industry.
 Pelot, C. (2010). Driving Organic Growth using cross selling. Atlanta: Finserv.
 The Boston Consulting Group. (2007). The Three Golden Rules.