About the author Sanjay M. Nafde Chief Manager (Formerly) State Bank of India & Freelance Writer
This relationship is particularly important for services like Banking and insurance where the relation between the customer and the service provider is of trust. Adding to the magnetism of customer retention as a strategy is the finding that it can reportedly cost anywhere from five to ten times as much to acquire a new customer than to retain an existing. One of the more widespread strategies for customer retention is the practice of cross-selling.
Cross selling has been defined as "offering current customer additional products or services that can provide added value for them". Cross selling has also gone by other names such as companion selling, suggestive selling, and complementary selling (Polonsky et al. 2000). Early jargon for a related selling practice is "bundling." Bundling refers to "the practice of marketing two or more products and/or services in a single 'package' for a special price".
Many experts feel that by selling additional products and services to existing customers, the cross-selling operation creates more value for both customer and service provider. On one side by offering more products from their contemporary product portfolio, service providers create value for their customers, who now can procure services from a single vendor. On the other hand, cross-selling enables service providers to boost up their sales and exploit their broader product portfolio, thus contributing high turnover with only marginal costs. They experience no extra costs in acquisition or distribution, because their customer relations and sales channels already have been recognized. The marginal cost of selling additional products is relatively low when compared with total costs, and most services offered by firms are interdependent in nature.
この記事は BANKING FINANCE の December 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は BANKING FINANCE の December 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
'Deep Fake' - an emerging risk for Banking & Financial Sector
Deepfake KYC fraud is a growing concern in India, where fraudsters leverage AI-generated deepfake videos and images to bypass Know-Your-Customer (KYC) verification processes. This has significant implications for financial institutions, fintech companies, and other organizations that rely on KYC to verify the identity of their customers.
RBI CIRCULAR
Operational framework for reclassification of Foreign Portfolio Investment to Foreign Direct Investment (FDI) - November 11, 2024
India's Fiscal Discipline: A Path to Economic Stability and Growth
In a significant economic development, the fiscal deficit for the financial year 2023-2024 (FY24) has been recorded at 5.6% of GDP, falling below the government's revised estimate. This unexpected positive outcome highlights effective fiscal management and a recovering economy, offering a ray of optimism amidst global economic uncertainties.
Augmenting Productivity by Embracing Employee Engagement
As the world's largest coffeehouse chain, Starbucks is a brand that understands the value its employees add to the business. At Starbucks, every employee knows they are valued members of the team. It took Starbucks some time to do this. They have prioritized implementing employee-friendly rules from the beginning.
Ethics in Artificial Intelligence: Navigating the Future Responsibly
Ethics in AI encompasses a wide range of issues, including fairness, accountability, transparency, and the potential for bias. At the core of these discussions lies the question: How do we ensure that AI serves humanity rather than undermines it? As AI systems increasingly influence critical areas such as healthcare, finance, and law enforcement, the stakes are high.
Digital Banking: The Need of the Hour
Development of an economy, especially economic growth primarily depends on industrial development. The industries depend on financial institutions support for funds especially from banks. Banks encourage individuals save and mobilise funds from bank deposits.
Cyber Crimes in Banking: India's Battle Against the Digital Menace
The increasing adoption of digital banking services has transformed the way Indian consumers engage with banks. According to research from the Reserve Bank of India (RBI), the country's digital payment ecosystem expanded by approximately 55% between 2021 and 2023.
Legal News
The Supreme Court (SC) ruled that clauses allowing public sector undertakings (PSUs) to unilaterally appoint arbitrators to resolve disputes with private contractors are invalid.
The Rise Of Green Marketing: Driving Sustainable Change
Green marketing refers to the practice of promoting products or services that are environmentally friendly or sustainable. It involves incorporating eco-friendly elements into various aspects of marketing strategies, including product development, packaging, advertising, and distribution.
ICICI Bank partners with PhonePe to offer instant credit on UPI
ICICI Bank announced that it has partnered with PhonePe to offer instant credit on UPI to its pre-approved customers on the app of the digital payments company.
