Cross-selling has to move online because that’s where customers are going.  So, what are the drivers of online cross-sell success, apart from getting business units to cooperate with one another in large financial institutions*?  Well, one of the great things about MIT is that you learn all these great analysis techniques – like system dynamics. The challenge is explaining them to the rest of the world.

-- Always up for a challenge, let’s see if I can explain the system diagram below.  The basic metric we’re driving is the number of leads we convert to sales each month which appears at the bottom of the diagram.

I’ve been disheartened this week for bank marketers. I came across a blog entry on Optirate.com titled, “Correlation vs Causation – Crucial Distinction for Marketers in Banking industry” that implied that increased revenue cannot be linked directly back to marketers.

Bacon had it right in the early 16^th century.  Few bankers will dispute that face-to-face sales interviews with customers produce cross-sell results.  Financial products are relatively complex purchases when compared to most consumer products (e.g. it takes a little more work to select the right mortgage than it does to buy a pair of shoes – and the cost of getting it wrong is a lot higher too!  You can’t send your mortgage back if it’s the wrong size).  Most people would still like to talk with a competent human being before signing at the X. 

The banking industry is on the verge of change on all sides—retail, technology, security, customer landscape etc. As the banking industry transforms and adapts to technological advances and customer demands and expectations financial institutions have the opportunity to redefine their goals. The emerging banking environments are dependent on financial institution marketers and their vision for the future.  So what’s on the minds of financial institution marketers this year?

First Tech Federal Credit Union has a brilliant program called The Giant Ear, where customers can make suggestions and vote on the attractiveness of other members' suggestions.

Glen Urban, noted MIT marketing scholar and entrepreneur, in his book, Don’t Just Relate – Advocate!, talks about Financial Institutions using online advisors to increase loan volume, reduce cost, and improve customer trust with 95% of customers recommending the advisor to a friend.   

At the same time, Winbuyer.com, is building customer trust by offering to put competitors prices on their customers’ websites (Yes, you read it correctly) and quoting success stories like, “Leading home improvement retailer improves conversions by over 20% with Onsite Comparative Pricing Solution.”

Towards the end of last year ABA Banking Journal published an article under the title, “DON’T JUST ASSUME YOU KNOW WHAT GEN Y WANTS.” As the title suggests the article debunks common perceptions of Gen Y priorities via the featured Farmers and Merchants State Bank.

Can Savings be social? This article imagines a future where banks will offer the opportunity to share your savings goals, and watch your friends spending patterns… interesting. Another article sites peer pressure as motivation to save more. It says that ING and Citi already have comparison tools that allow you to see how you stack up others..

We are two days away from 2012, and predictions for the new year and reflection on the old are rampant. What will the marketing trends be? Will banks bring on more innovation? Will mobile payments catch on? What were the funniest stories?  Amidst the clamor of prediction and reflection I have found an anchor in good customer service.

It’s the hap-happiest, and let’s not forget busiest, time of the year, especially if you’re a shopper. Retailers are trying to lure you in with sparkly display windows, and online retailers have sent more emails with subject lines like “Get it by Christmas” than Santa can keep up with.