Think like a retailer: the first step in improving cross-sell is to create a dynamic space where customers want to linger, browse and shop for new products.

• Author: Doepke, Rebecca
• Position: Fundamentals: Cross-Selling

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The retail industry holds the answers to a conundrum most financial institutions face--how to increase cross-sales. Much has been written about "retail banking," but how many financial institutions are actually embracing the idea of moving from staid traditional banking to a more dynamic retail approach? Even using the word "sales" makes some bankers twitchy.

But growing your business from within by capitalizing on your existing clients is the most timely and cost-efficient way to expand. Cross-selling a stumbling block if you're hold-onto a traditional transaction-based process. Embracing retail is to increasing sales,

Train employees to be retailers

In a survey on "The Relationship Experience." sponsored by the BAI. Chicago, and NewGround. St. Louis. more than 93 percent of bankers indicate that frontline positions require a combination of customer relationship and sales skills to succeed, but only 33 percent say they are currently incorporating formal training on relationship management. In other words, bankers understand the need to become retailers. but are doing little to educate their staff on how to deliver a retail experience to customers.

To develop or improve upon your bank's cross-selling strategy, you must start by first examining your staff. Cross-selling requires hiring the right person for the role. Financial institutions need to recruit and hire employees who are the right fit for your market. Employ staff that live. work and Shop in your market. And hire people who can sell. The role of fronfline staff has evolved from order taker to customer advocate. It is important to address this advancement in your hiring process, too. Banks need frontline employees who are comfortable with selling and developing relationships with customers.

To cross-sell one must be able to approach or engage customers to talk to them about their financial concerns and needs. And further, they should be able to advise customers on products and services that meet or exceed the customer's needs. Professionalism and empathy are critical to completing a cross-sale. An employee not only needs to be a salesperson, but a credible expert.

According to the survey mentioned above, 79 percent of participants said their front line lacks the skills or the access to utilize the basic customer relationship information that would allow them to retain and grow relationships.

The actual process of cross-selling--the employee/customer interaction--contains five steps.

* Frame the conversation. Employees must understand how to begin the conversation. Engaging the customer...