What is cross selling?
Cross selling is the sale of the complementary products and services over and above the main services or products provided to the existing customers. It is the method of marketing as the more complementary services attracts the more consumers. It is like providing the services of the tax returns and planning to the customers who are engaged in the retirement plans with the entity. This cross selling is done so that he clients are retained as well as to provide the facilities to the clients to increase the profitability of the entity.
Source : spektrix.com
Effectively this cross sale can be of many kinds like providing the investment plans, selling insurance plans, providing financial services by financial planners (who help in meeting the finances to the entities), etc. so the tax returns preparers can give the services of helping the clients in choosing the effective insurance plan according to their demand and need and also providing services of whether to invest in the stocks or any other security and what volume shall be invested by them.
Up-selling vs. cross-selling
Source : imediadesigns.ca
What people thinks in the common world is that both the up selling and the cross selling are one and the same thing, but it is not in the real sense. Up selling means providing the better and higher version of the product that you are already selling to the customers, thus if you provide the same product with different quality then it will be known as up selling and the cross selling is providing all together a different product or service to the existing customers. Thus the difference between these two is that the cross selling gives you the different product.
Advantages of cross selling
Source : anpintl.com
The cross selling is important in the banking sector so that the customers retain with them as in the financial sectors there is very much competition and for the customer to choose the bank has become very much important as we can see that the person will go towards the bank which will provide more complementary services. This will be helpful to the bank in many ways such as they will not have to go find a new customer in the market and also they will earn from this services also. Similarly customers are also at the beneficial side as they will not have to approach different entities and people for the different services they want as well as they will have to pay less amount than the aggregate which he used to give to the people before.
Some of the cross selling services e.g. provided by bank
Source : pymnts.com
if a person goes to bank to open a savings account with rs.10000 and the banker will provide the information about the banks new policy of opening an account in the bank which will be used for the investment in the mutual funds and it will fetch the higher returns to the customers then the saving accounts, so that this facility will be useful to the consumers and bankers both.