Three Critical Moments to Increase Share of Wallet

Three Critical Moments to Increase Share of Wallet

Bridging the GapFinancial institutions today are competing harder than ever to retain their customer base and grow their revenue. One essential component of any customer retention strategy is to increase customer “stickiness” and decrease the rate at which customers move to competitors.

Cross-sell and upsell initiatives can be a crucial part of a customer retention strategy, as well as a powerful contributor to your bottom line. Statistics suggest that the more products a customer has with their primary financial institution, the less likely they are to move to a new one. So getting your cross-selling and upselling right pays off, both in increased revenue and in increased long term customer stickiness.

To help you on your way, here are three moments during the customer lifecycle when your customers are more willing to consider additional products and services. Focusing on any one of these opportunities can be an excellent first step to cross-selling and upselling success:

  • Customer onboarding – A customer who is applying for one product has a higher propensity to consider another product or service than a customer who isn’t in the midst of the onboarding process. This “onboarding effect” can be encouraged by incentivizing customers to select a bundle of products and services that suit their needs, now and in the future. A word of caution, though – your onboarding process needs to be streamlined, because no customer wants to sit through hours of redundant form-filling to apply for more than one product at once.
  • During lending – During loan application, your staff members sit down with customers and do a review of assets and liabilities. The information they uncover here may naturally lead to the recommendation of further products – for example, a customer might take advantage of mortgage renewal to also open a HELOC and consolidate debt. Make it simple for them to apply for more than one lending product at once, and your wallet share will increase almost effortlessly.
  • After a life event – Many of your customer’s financial lives will follow a predictable sequence, so you can anticipate what your next best action is to assist them. For example, you may know that the customer who is contacting you to open a child’s educational savings account may soon be in the market for a larger home as well, so you can add them to a marketing campaign that talks about mortgage options. Capturing customer data with a CRM solution and analyzing it to find patterns in purchasing behavior is an essential step to getting these offers right, but this hard work pays off with much higher conversion rates that more generic marketing campaigns can’t match.

To increase your share of wallet, you have to get the offer right, make it at the right moment, and ensure it is simple for the customer to accept. The right technologies are an important part of this process – CRM and Business Analytics help you match offers to customers, while Loan Origination and Client Onboarding technologies help your staff sell more effectively by letting them focus their attention on customer needs, not on paperwork. Once these building blocks are in place, your financial institution will be primed to sell more effectively, at the moments when customers have the highest propensity to buy.

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