Banks see cross selling benefits from customer analytics
2010-07-07
While every bank tries to capitalize on its customers' loyalty by getting them to buy additional products, financial institutions need to take advantage of customer analytics to better target these cross-selling offers and increase success online, according to Bank Technology News.

The magazine says that banks have traditionally tried to use online ads to reach their online banking customers, but often there is a disconnect between the content of the advertisements and the actual financial products the customer may be interested in.

Bank consultant Brett King told the publication that banks often don't make "the right offer at the right time" and fail to grasp that "to cross-sell and upsell ads must be highly targeted and banks must understand the total relationship."

As financial institutions take better advantage of their customer segmentation analysis, they can understand whether a customer likes credit cards or is saving up for a new car before making a promotional offer for a credit card or auto loan.

The technology becomes even more important as banks place an increased importance on cross-selling. Experts told BusinessWeek that financial institutions are ratcheting up their efforts because many of their "traditional sources of income" are taking big hits.

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