Cross-selling - an effective tool for making a profit

The effectiveness of the development of financial institutions directly depends on the quantity and quality of the services sold. For example, in the banking sector - it's sold loans, installments, loans and other services, in insurance companies - these are insurance policies for cars, real estate, life insurance. The implementation, together with the necessary goods and services to the customer, is still called any cross-selling. In other words, it is the cross-selling of services or products.

The main task of such methods is to increase the revenue part of the organization. Often, products that are sold using such methods are highly profitable, but less popular, and therefore offer them to "load" to other popular products.

Types of cross-selling

Conditionally they can be divided into sales in the service sector and in the sphere of goods. In the service sector, this kind of sales is often presented in banking and insurance.

The difference between this method of sales in different spheres of business

Cross-selling of banking products is a combination of services, different in their purpose. For example, if a person has a loan, you can also sell a payment card along the way. Thus, the load on the client will be much higher, the profitability of the institution - more. Another example: an enterprise applied to a bank for a credit line. The bank decided to lend, but taking into account the opening of the current account and the transfer of the salary project. In this case, we see a voluntary-compulsory option for such a realization of the current account and the salary contract.

Cross-selling in insurance has also gained great popularity. Almost any insurance company strives for comprehensive customer service. That is, if you applied to an insurance company to insure real estate, you will be offered other types of insurance (life, car, etc.). The sale of other products of the insurance company together with the main one is the cross-selling in insurance.

Trade and methods of sales

Cross-selling in trade is slightly different from such actions in financial spheres. Here they are presented, rather, an addition to the main sale than a separate product. For example, if you purchase a smartphone or a computer, you will be offered an additional service or software for a fee. Thus, popularize goods that are poorly sold.

What are the benefits of these methods?

• Popularization of services that are poorly sold.
• Often, cross-selling brings high returns, so using this technique significantly increases the company's financial performance. The profitability of capital, liquidity of the organization increases, which significantly improves the statistical indicators.
• The desire of organizations to move to a European quality of cooperation, where a significant part of the profits (up to 30 percent) enterprises receive from additional services, which are sold through cross-selling.
• The use of this technique allows the organization to make "universal soldiers" from its managers, since the implementation of this method in practice is possible only with excellent knowledge of the personnel of all products of the company.