As 75% of all cross-selling occurs within the first 90 days after account openings…and only 9% occurs after the first year, it is clearly vital to maximize cross-selling at NAOs. By doing so, attrition is reduced.
As new checking account attrition is most significant in the first 3-9 months from the time the account is opened, it is essential to maximize product/service penetration as soon as possible before attrition occurs.
As stated previously, when bankers develop an increased capability to cross-sell at NAOs, they also experience increased success in cross-selling existing customers. Thus, sales results for cross-selling both new and existing customers increase. Hence, bankers/managers will develop skill sets in a “safer” environment because of the NAO Cross-Selling Process, which then transfers to existing customers as well.
In fact, as the NAO Cross-Selling Process learning principles apply to all customers and all products/sales initiatives, when bankers and managers acquire the correct cross-selling mindset and master the skills necessary to maximize cross-sales at NAOs, results in all sales and service areas are also enhanced.
As examples, the NAO Cross-Selling Process is now being effectively used within call/contact centers, in Premium Banking and for prospecting purposes in shopping malls.
Implementation results in improved customer experiences for both new and existing customers as consistently reported by our clients. This was a rewarding unexpected consequence of the NAO Cross-Selling Process. Testimonials
We specifically and consistently ask each of our clients if they have received any complaints from their customers or prospects about the NAO Cross-Selling Process, including comments regarding “product pushing.” The answer has been universally, “No.”
In fact, our clients have told us that even after customers have been cross-sold more than 8 products/services at NAOs, they have come around desks to literally thank/hug their bankers, while others have bought flowers for them, and taken them to lunch.
Furthermore, our clients have specifically said that the NAO Cross-Selling Process has generated proactive comments about the enhanced customer experience by existing customers such as, “Something is just better at my branch.”; “The bankers seem to be more positive, confident and knowledgeable.”
Therefore, although increased cross-sales at NAOs have been perceived as counter-intuitive to increased customer satisfaction, the NAO Cross-Selling Process does indeed simultaneously increases customer satisfaction and products/services per household.
It produces improved confidence and job satisfaction for bankers and managers.
In our over three decades in the business, which has included major banks worldwide, we have never received as many positive comments by bankers and managers as we have about the NAO Cross-SellingProcess. Testimonials
Once bankers experience the NAO Cross-SellingProcess, their reluctance to selling multiple products/services at single customer interactions is significantly reduced or eliminated. This includes bankers who have never been able to do a sufficient job of cross-selling, being able to sell over 10 products/services at a single customer meeting…as well as bankers who have been literally on the job only three days, reaching cross-sales of 6 or more products/services at NAOs.
Additionally, it significantly increases a positive cross-selling mindset and skills competencies/confidence among bankers and managers in general, as stated earlier, because cross-selling is perceived to be “safer” at NAOs than with existing customers…and it simply works better.
This is contrary to certain myths which hold that it is easier to cross-sell existing customers than brand new customers, which could not be further from the truth.
Also, focusing on cross-selling at NAOs is significantly easier than doing so with existing customers because there is no history of problematic complaints or dissatisfactions with the organization.
Furthermore, brand new customers are typically very receptive to both input and advice when it is provided in a professional and caring way. If the customer is opening up a core transaction account with the bank, it is totally logical from a time and convenience point of view for the customer to also have the bank as their main financial institution.
Focusing on NAOs is the single most important thing that a bank can do when opening brand new branches!
This is obviously the case as every customer is a brand new customer!
Thus, new branches should be the unquestionable recipients of the NAO Cross-SellingProcess.
By targeting NAOs, it provides an opportunity to fairly assess the quality of a bank’s sales culture and its cross-selling abilities, independent of other variables.
It is very difficult to compare incremental cross-selling improvements between branches where one branch’s cross-selling numbers are 2.6 and where the other is over 5.0.
NAOs present a level playing field, as completely brand new customers have zero products/services when they enter a bank branch for the first time. Moreover, they have no negative baggage with a particular bank or branch (unless they are returning customers who may have had a bad experience with the bank in the past. But, in this case, returning customers most likely have realized the superiority of the bank as compared to the bank that they had previously left).
Furthermore, it allows management to equally assess on an apples-to-apples basis, bankers who have been on the job for one day vs. those who have been on the job for ten years.
The same principle applies to assessing the quality of managers on a branch-to-branch comparative basis.
NAOs also serve as a launch pad for maximizing cross-selling throughout the life of the customer relationship. That is, it pre-positions future appropriate and ethical cross-selling for customers…as well as for bankers and managers. Consequentially, receptivity is enhanced.
The NAO Cross-SellingProcess provides a solution for the 8 to 10 x and 20/80 problem.
That is, the common reality where the top 10% of bankers/managers outperform the bottom 10% by a factor of 8 to10 times…and where 20% of the population produces 80% of the positive outcomes (or directionally similar variations of these numbers).
The reason is that the NAO Cross-SellingProcess simplifies and enhances the ability of a bank to learn what the top performers are actually doing while implementing it. This allows for immediate and effective cross-pollination to lower performers.
There are improved leadership, management and coaching skills because of the precise alignment of NAO Cross-SellingProcess skills with specific coaching activities that are part of it.