Cross-selling and upselling in a post-Wells Fargo world

Wells Fargo has shoveled a heaping pile of consumer distrust onto financial institutions. As most (if not all) of you readers already know, the San Francisco-based banking giant has been slapped with a total of $185 million in fines from state and federal regulators for creating over two million fake bank and credit card accounts without the knowledge or consent of its customers.

How did this happen, exactly? Wells Fargo’s business model called for “enthusiastic” cross-selling, which translated to an aggressive sales environment. “Wells Fargo built an incentive-based compensation program that made it possible for its employees to pursue underhanded sales practices, and it appears that the bank did not monitor the program carefully,” said CFPB Director Richard Cordray.

In an effort to meet the sales goals set before them, many Wells Fargo employees deployed unethical tactics such as opening unauthorized deposit accounts and transferred funds without customer knowledge, submitting credit card applications for customers without consent, issuing and activating debit cards without authorization, and fabricating email addresses to enroll customers in online banking.

No wonder why most consumers are distrustful of financial institutions. Even though it may seem like an uphill battle, there are ways to gain and strengthen your current members’ loyalty and trust; and it begins with understanding them.

UNDERSTANDING TODAY’S CONSUMER

  1. They are digitally driven. By 2020, it’s estimated that the average consumer will manage 85% of its relationships with an enterprise without human interaction, according to Walker Information. We all know that the demand and use of online financial services is growing. What’s more, consumers are expecting a personalized, real-time experience that makes them feel as though they are a real part of what is going on around them. That said, the right ePresentment platform in conjunction with online banking can provide an opportunity to engage members with timely information that is relevant to their specific needs. Take things a step further by using ePresentment to engage members beyond home banking to social media. By enabling social share buttons on all marketing messages within ePresentment and all other digital platforms, members will have one-click access to share information (such as an advertisement promoting low auto loan finance rates) with their social network.
  1. Only half of them are financially monogamous. According to a recent survey from GOBankingRates, over 46% of consumers are non-monogamous when it comes to financial needs. This means that over half of all credit union members are likely utilizing more than one financial institution. Typically, this is where cross-selling and upselling come in handy because you can promote personalized offers to each member to entice them to move all of their business to your credit union.

STAYING IN FRONT OF TODAY’S CONSUMER

Cross-selling and upselling of products and services can be good practices because they drive action and loyalty while slashing member acquisition costs. Yet in a post- Wells Fargo scandal world, many credit unions are either cutting back on or completely eliminating branch-level sales goals.

With obvious dips in revenue production forecasted due to these actions, how will credit unions compensate for those missed opportunities? Here’s an obvious answer: Digital and print business-critical communications.

Statements, letters, notices, and other documents lend a perfect vehicle for cross-selling and upselling without risking noncompliance for fraudulent account activity. These documents must be sent to members anyway- so why not maximize the document space by promoting other products and services? Below are some helpful ways to get started:

  1. Place links to products and services prominently on all customer-facing digital documents and website landing pages. This will give members quick and easy access to all offerings, decreasing the chance of them taking their business to a competitor.
  2. Personalize communications. According to a study from the University of Texas, consumers prefer personalized experience because of two key factors: desire for control and information overload. If you put them in the driver’s seat and make them feel as though you are reaching out to them personally, they will be more likely to engage with you.
  3. Utilize dynamic messaging. You have so much member data at your fingertips- now it’s time to put it to good use. Age, income, geographic location, and marital status can help you deduct if your customers are eligible for your other services. From there, you can display messages and ads that are relevant to each member.
  4. Provide interactivity. Including interactive marketing messages is a capability enhanced through ePresentment. Marketing messages that can be clicked for immediate access to offers are extremely beneficial to your cross-selling and upselling goals and also allow for a more pleasant user experience.

WRAPPING IT UP
Digital and print business-critical communications open the door to endless cross-selling and upselling opportunities that will increase brand loyalty while helping you make up for the margin lost on branch-level sales goals. Interested in learning more? Visit www.lanvera.com.

Callie Cady

Callie Cady

Callie Cady is the Communications & Marketing Manager at Lanvera, a world-class provider of end-to-end outsourcing solutions for transactional documents. At Lanvera, cutting edge technology solutions are coupled with industry ... Web: www.lanvera.com Details