When it comes to cross-selling, many financial institutions face a common issue: their efforts become overly complicated, leading to decreased member engagement. In this context, the age-old saying "keep it simple" holds true. If your credit union (CU) wants to implement an effective cross-selling strategy, it should focus on the following core areas:
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1. Automate as Much as Possible, Especially in the Beginning
To save time and streamline processes, your credit union should leverage automation for cross-selling opportunities. Utilize your core platform to track member interactions and identify their interest in specific services, such as browsing a "Credit Cards" services page. By obtaining this information promptly, your CU can address members' needs faster and facilitate the next steps.
2. Verify Eligibility Upfront
While a member may express interest in a credit card, it is crucial to determine their eligibility before initiating contact. Reaching out only to discover they do not qualify can tarnish their experience with your CU. Therefore, prioritize verifying eligibility for the offered service before making any contact.
3. Focus on Timing
Timing plays a pivotal role in cross-selling success. Research indicates that contacting a member within five minutes of their actions—such as viewing a service page, requesting information via email, or submitting a web form—dramatically increases response rates. Ensure your system notifies you of significant events, like when someone uses a loan calculator tool, enabling timely follow-ups.
4. Always Follow Up
Expressing interest in a product, such as a credit card or new car loan, doesn't necessarily mean a member is ready to commit immediately. Rather than pressuring them, make a note to follow up at a later date, preferably according to their preferred timeline. This approach keeps your credit union at the forefront of their mind and demonstrates ongoing support. When the time is right, the chances of them choosing your CU will be higher.
5. Reward, Reward, Reward
Don't consider the cross-selling journey over once a member takes the desired next step and embraces a product. Take the opportunity to acknowledge and reward their engagement. For instance, if your credit union has a rewards program, offer points for every dollar spent on a credit card or provide a rate discount on a related product. Whenever possible, recognize and reward members to strengthen their loyalty.
In conclusion, effective cross-selling for credit unions hinges on clear and concise communication of value to members. Simplifying the process increases member receptiveness. To gain deeper insights into cross-selling and other essential concepts, FLEX has authored a comprehensive guide. Download it by clicking the button below and take the first step toward a successful cross-selling strategy.