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.
Denne historien er fra December 2023-utgaven av BANKING FINANCE.
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Denne historien er fra December 2023-utgaven av BANKING FINANCE.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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RBI CIRCULAR
Facilitating accessibility to digital payment systems for Persons with Disabilities Guidelines
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The Role and Impact of the Insolvency and Bankruptcy Code (IBC) in NPA Recovery
Indian banks, especially grappling with the mounting challenge of Non-Performing Assets (NPAs) within Scheduled Commercial Banks (SCBs), are experiencing a significant downturn in their capacity for credit recycling, resulting in reduced business opportunities and declining profits. However, various factors contributing to the severity of NPA problem are including macro-economic, political, and internal factors, emphasizing the complexity of the issue. With this background, the present study puts an effort to look at the role of the Insolvency and Bankruptcy Code (IBC) in NPA recovery and also showcasing its significance in resolving insolvency and maximizing creditor recovery.
Big Data in Banking: Analysing its Role, Advantages and Challenges
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Is SIP Always the Best Option? A Look into Lump-Sum vs SIP During Volatile Markets
SIP is a method of investing a fixed amount at regular intervals, typically monthly, into a mutual fund. It allows investors to buy more units when prices are low and fewer when prices are high, a process known as rupee cost averaging.
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When stock markets experience a decline, mutual fund investors often face a sense of insecurity and apprehension. The volatility can lead to impulsive decisions, which, rather than securing financial health, may impair long-term investment objectives.
Fraud Risk Management In Banking
Fraud risk management is a fundamental aspect of overall Risk Management within the banking sector. In India, banks adhere strictly to guidelines set forth by the Reserve Bank of India (RBI) to prevent, detect, and promptly report fraudulent activities.
