Things have to change. Cross selling is not going to happen simply by installing new CRM technology. A corresponding movement from a transaction mentality to the underlying CRM principle of focusing on the long-term relationship is required. What does this mean for financial services? Stop pushing products and start building relationships.
The Consumer's Perspective
Let's take a look from the consumer's perspective. Financial illiteracy is alive and well, especially with baby boomers. Next, throw in brand confusion-the convergence in financial services has produced new players, company names, and products. Everybody is now playing in everybody else's backyard. Insert the media's frequent coverage on retirement planning and increased advertising dollars being spent targeting "the confused generation." Now, throw in the fact that there is widespread incoherence around what the term "financial planner" even means. At its best, this situation is overwhelming to prospects, current clients, and maybe even your employees. At its worst, people are sticking their heads in the sand and saying, "leave me alone!"
Marketing financial products and services has always been an information and relationship sale. You are in the personal finance education business, whether you like it or not. And it's not nearly as sexy as the ad agencies make it seem. No matter how many sailboats, moonlight beaches, or mansions your advertising agency plasters in print and on the airways, selling financial services and products makes prospects and clients deal with issues with which many are uncomfortable. It is no wonder that selling financial services demands a set of tools that moves far beyond the info dump and plethora of brochures that dominate the industry.
The Financial Firm's Perspective
Let's now take a look from the financial firms' perspective. Mergers and acquisitions have been in full throttle. Corporate identities are still being created. Not only is there more competition, but it's possible that the more serious competitors are residing within your own company. CRM is slowly permeating the lexicon of the financial world. Yet, with a few notable exceptions, financial firms lag far behind industries like retailing and airlines in data mining, making it almost impossible today to build a single integrated view of their customers.
On either side of the spectrum, change is the dominant theme. So given the current state of affairs, how do you execute a CRM strategy that promotes cross selling and up selling? How can you increase the chances that your CRM strategy will stick? Here are some of the best conditions for selling: When the sales force has complete access to a particular customer's need or near-term future needs.
When the sales force knows and understands what cross selling and up selling mean in your firm.
When staff, partners, and suppliers work together to deliver what is promised.
When leadership teams agree on how to lead the transformation necessary to change culture, structures, systems, metrics, and behaviors to promote cross selling.
The Softer Side of CRM
All of the above conditions require more than technology solutions and product knowledge to execute. They require the softer side of the CRM equation: relationship building with customers, prospects, your boss, your peers, other departments, partners, and suppliers. If you want to solve the business challenge of cross selling and up selling, you'll need to: Build trust. For financial planners, brokers or agents, that might require working with prospects in new ways. For corporate or home office staff, that might include building bridges with other departments or field staff. Develop a network of helpful relationships that will act as "oil" for the CRM machine. Research shows that the more helpful relationships there are, the more information is willingly shared. For financial planners, brokers or agents, that might mean prospecting in new ways. For corporate or home office staff, it might mean articulating and agreeing on a practical policy of real-time knowledge and information sharing. Build crucial social currency both with customers and with people inside the organization. The core of any social or economic relationship is trust. It's all about influencing others to take action in the direction we want them to go.
It's a Process
Relationship building is a process of trust building. It is also an iterative process. It is a process of layering...the relationship starts at arm's length, then grows more intimate as the trust builds, passing little tests along the way. This applies to all relationships-with customers, employees, peers, partners, and even competitors. Your internal experts in technology, marketing, corporate identity, operations, and sales must grow to learn how to be content experts in the business of relationship building. In today's environment, CRM is screaming for experts on relationship building. Managing customer relationships can only happen after they've been properly built.
One word of caution for financial services firms as they march forward to the CRM tune: don't worry so much about selling the features and benefits of your products. You're already really good at that. Start worrying about how you can build relationships with your customers and prospects in new and different ways that will allow for cross selling and up selling. Remember the aphorism: A sure sign of insanity is doing the same old thing while expecting new and different results.
Originally published by CRMGuru.com , a service from Front Line Solutions, ©1998-2001
(c) 2004 TurningPointe Marketing, Inc. All rights reserved.
Marketing educator, Kelly O'Brien, is creator of the "Create a
TurningPointe!" Marketing Bootcamp. To learn more about this step-by-step
program, and to sign up for FREE how-to articles and 20-page marketing
guide, visit http://www.turningpointemarketing.com
What do the following things have in common: brushing your... Read More
On a copywriting board I frequent, someone expressed bafflement that... Read More
1) Create systemsCreate systems for everything you do, especially those... Read More
Starting a new online business, developing a new product, launching... Read More
If this is the first marketing article you are reading,... Read More
A church in my community provided me with one of... Read More
Tactical marketing processes are once again undergoing fundamental shifts from... Read More
Under normal circumstances, you'd shout it from the rooftops. After... Read More
Writing an effective print ad, particularly a classified advertisement, requires... Read More
Little Kids Ask Until They Get What They Want.Mom, Mom,... Read More
There are several color formats and systems available for mixing... Read More
How would you like celebrities to endorse your product?Perhaps that... Read More
Too often we small business owners get caught up in... Read More
Do you ever wonder how some businesses always seem to... Read More
Its become fashionable to bash marketing "gurus" nowadays.There are some... Read More
Email CampaignsEmail marketing can be a tremendously valuable tool for... Read More
There are other names given to "Back-End Selling". You may... Read More
These steps are taken from the Referral Flood Marketing Program.... Read More
The famous P.T Barnum once said, "Without promotion, something terrible... Read More
Cartoons have gone from celluloid to digital. Movies have gone... Read More
The difference between a successful business and one that just... Read More
Of all the web sites belonging to coaches, consultants and... Read More
You could end up with poor results when designing a... Read More
Okay, we were kidding about the smoke, but not about... Read More
In a previous installment, we spoke about how to come... Read More
Those who believe the web is not a direct response... Read More
With the Internet opening up the doorway to the global... Read More
A powerful consumer market with annual spending power exceeding $350... Read More
Many people have asked me what was the secret to... Read More
As the American economy emerges from recession, many businesses are... Read More
"Brochure" is French, and it comes from brocher, meaning to... Read More
Why give freebies?We have all seen freebies at trade shows... Read More
What do Klingons, giant rubber bands, and monster trucks all... Read More
If you use promotional products you probably already know the... Read More
Business owners often find it difficult to know whether their... Read More
Marketing calendars are used by many businesses to help keep... Read More
When a prospect responds to your lead generation sales letter,... Read More
Don't get me wrong. I certainly don't think the majority... Read More
There isn't a day that goes by that I don't... Read More
I don't know if you have ever seriously considered bartering.... Read More
December marked the 40th anniversary of the original broadcast of... Read More
Why Trying to "Get the Appointment" Can be a Recipe... Read More
Postcards can drive a huge amount of traffic to your... Read More
With the increase in number of tradeshows being held across... Read More
If you are operating a business from your home and... Read More
The intellectual property transfer market is now estimated to be... Read More
More and more people are realizing that the Internet offers... Read More
If you want to design effective marketing postcards, then aim... Read More
Dumb Excuse #1"I'm not sure I want to invest any... Read More
In the last issue we looked at 5 reasons why... Read More
Grant Businesses have a love-hate relationship with the Yellow Page... Read More
What is a Marketing Plan? Marketing is to do with... Read More
Do you have a website? A Web Newsletter? A mailing... Read More
One particularly hot south Texas day, I was making a... Read More
In today's highly competitive business environment it is critical to... Read More
No, that's not a typo in the title. Resolutions are... Read More
The ropers at Annie Oakley's Real Western Dudette Ranch were... Read More
Having a downline can be golden. A downline is a... Read More
Too many loan officer websites look like congested intersections, information... Read More
It goes against the grain, especially for those of us... Read More
Small companies that rely on business-to-business sales often find it... Read More
Marketing to women entrepreneurs is not difficult. You just have... Read More
Business cards are such wonderfully creative little marketing products. Most... Read More
You can make the sale. You know your core message.... Read More
Are your marketing messages to Realtors® guilty of these promises?-... Read More
If you use direct mail postcards to generate leads or... Read More
Marketing |