Cross Selling
- Cross selling means selling of products/services to an already existing customer. And then if we talk about banks, when they sell any extra banking products/services to their customer along with the product the customer wants. Example: selling a credit card and internet banking to a savings or current account customer, selling their any bancassurance products, etc.
- Banks have been using cross sell as a marketing approach to expand their footprint and also increase their customer base.
- Cross selling also have advantages like it reduces servicing, marketing and communication costs and thereby substantially increases spread for banks also.
- Both terms are used interchangeably, both offer distinct benefits. Unlike cross selling, up selling means encouraging customers to purchase a higher-end product or we can say a more costly product than the customer has asked for. Example: the customer asks for a credit card with overdraft facility of Rs 10,000 but the banking representative tells him benefits of having the card with more facilities, etc.
