Cross-selling - an effective tool for making a profit

Effectiveness of financial organizations developmentdirectly depends on the quantity and quality of the services sold. For example, in the banking sector - it's sold loans, installments, loans and other services, in insurance companies - these are insurance policies for cars, real estate, life insurance.

The implementation, together with the necessary goods and services to the customer, of any additional is called cross-selling. In other words, it is the cross-selling of services or products.

The main objective of such methods is to increaseincome part of the organization. Often, products that are sold using such methods are highly profitable, but less popular, and therefore offer them in a "load" to other popular products.

Types of cross-selling

Conditionally they can be divided into sales in the service sector and in the sphere of goods. In the service sector, this type of sales is often presented in banking and insurance.

The difference between this method of sales in various business areas

Cross-selling of banking products isa combination of services, different in their purpose. For example, if a person has a loan, you can also sell a payment card along the way. Thus, the load on the client will be much higher, the profitability of the institution - more. Another example: an enterprise applied to a bank for a credit line. The bank decided to lend, but taking into account the opening of the current account and the transfer of the salary project.

In this case, we see a voluntary-compulsory option for such a realization of the current account and the salary contract.

Cross-selling in insurance also purchasedgreat popularity. Almost any insurance company strives for comprehensive customer service. That is, if you applied to an insurance company for the purpose of insuring real estate, you will be offered other types of insurance (life, car, etc.). The sale of other products of the insurance company together with the main one is the cross-sale in insurance.

Trade and methods of sales

Cross-selling in trade is slightly different fromsuch actions in financial spheres. Here they are presented, rather, an addition to the main sale than a separate product. For example, if you purchase a smartphone or a computer, you will be offered an additional service or software for a fee. Thus, popularize goods that are poorly sold.

What are the benefits of these methods?

• Popularization of services that are poorly sold.
• Often, cross-selling brings high returns,Therefore, the use of this technique significantly increases the company's financial performance. The profitability of capital, liquidity of the organization increases, which significantly improves the statistical indicators.
• The desire of organizations to switch to the Europeanquality of cooperation, where a significant part of the profit (up to 30 percent) of the enterprise receives from additional services, which is sold through cross-selling.
• The use of this technique makes it possibleorganizations to make "universal soldiers" from their managers, since the implementation of this method in practice is possible only with excellent knowledge of the staff of all company products.

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