According to a recent study, credit unions have a 60% to 70% chance of conversion when they concentrate on cross-selling to current members. However, when dealing with non-members or people without a pre-existing relationship, the chances drop to only 5% to 20%.
Assuming that tapping into the full potential of cross-selling for credit unions would be easy is a mistake. It is challenging, but to succeed, credit unions need to be tougher.
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A Matter of Perspective
It is crucial for all credit union employees and leaders to understand that cross-selling and upselling are not merely methods to increase revenue in the short term. Instead, it is about fulfilling the commitment made to a member when they first walked through the doors.
It involves improving their access to personalized, relevant, high-quality, and trustworthy financial products. It aims to instill confidence in them that serves a far greater purpose beyond money.
If you can handle that aspect of the equation, the "increased revenue" component will ultimately take care of itself. However, it should never be the priority since members can easily perceive any cold, calculated cynicism from a mile away.
Creating a Mutually Beneficial Situation for All Involved
Similarly, unlocking the full potential of cross-selling and upselling requires a clear understanding of what you are trying to achieve for all parties involved. From members' perspectives, they gain access to financial products that enhance their lives in some way. Your credit union can leverage this tool to achieve A) continuous growth and development of the organization, and B) an increase in member satisfaction that boosts retention.
Therefore, you must do everything possible to remain top of mind with members while they make financial decisions, without being pushy. Always prioritize needs-based cross-selling, so that you appear as someone who wants to help instead of someone who is annoying.
Preparation is Half the Battle
To reach the point where cross-selling and upselling can be effective, preparation is key for you and your employees before reaching out to any members. An uninformed cold call can be immediately off-putting, which is the opposite of the personalization that members want.
To avoid this, review all recent contacts and touch points with the customer through your core system, understand who they are, what they need, and what they want. Only then will you be able to help them succeed while creating a scenario where you can do the same.
Cross-selling and upselling are not only viable ways to increase the value of each member but also to offer them more personalized and relevant recommendations on financial products and services they might enjoy. FLEX has authored an eGuide on this topic, which provides more information on why cross-selling and upselling are always worth the effort. To find out more, click the button below to read it and start your journey today.