Welcome to the Top 5 Percenter™ Blog

3 Hidden Dangers of Cross-Sales

by | Sales Process

For decades now, I’ve seen the statistics run along the same alarming, flat line…cross-sales of new accounts in banking AVERAGE…AVERAGE, just 2.2 per account! Let me spare you the complex math…

That means MANY banks are below 2.2 cross-sales per account and some are above—but not far.

Cross-sales may seem like a small issue, but the industry-wide cross-sale contagion poses a near and very present danger to you on three fronts.

Danger #1: The Obvious: You’re likely leaving big heaping piles of money laying on the table! You spend money by the bucket-load to acquire new customers, then sell them a free checking account and a loan at a rate you don’t like. Your personal bankers swell with pride as they close the deal, shake hands, and let piles of profit walk right out the front door!

Danger #2: The Long Arm of The Law: Regulators are starting to give the depth of your customer relationships a TSA style “personal inspection”…”step behind the paper curtain, please, while we check your knickers!” They’re looking for sticky relationships and the #1 measure…how many different accounts you have with each customer. If you’ve been flunking cross-sales, the examination won’t go well.

Danger #3: The Secret of Efficiency: There are three ways to grow any business and banking’s no different…1) Get more customers. 2) Sell more to the customer you’ve won. 3) Sell more often to the customers who’ve been with you. One of the three requires a MASSIVE capital investment. The others, almost zero. Increasing cross-sales is the single fastest way to increase your efficiency.

If your staff is hovering around the industry average of 2.2, you may think “that’s as good as they can get.” Please don’t underestimate what you and your staff can do.


More From The Blog

You Deserve More and Better [VIDEO]

Are you tired of accepting or being bound by limiting beliefs?     Today, we're going to blow up the biggest limiting belief in banking. It's so bad that it keeps you...

Master the Four Levels of USPs [VIDEO]

What if you can use extreme differentiation to get 150 basis points or more on the loan side and improve your deposit pricing at the same time?   If you're the kind of...

Stop Matching the Competition [VIDEO]

You deserve to get paid more. Rate matching is the most destructive force in community banking today. And because of it, as a community bank, you are underpaid for the...

How to tie everyone to PROFIT [VIDEO]

Does every team member on your team know how they tie to profit? I mean really know? When a study published in Businessweek revealed they had asked 6,000 employees, "Do...

Who Made Up THAT Rule? [VIDEO]

Everyone has patterns of disbelief. Some people believe that in politics, there is one side or the other, and they're unwilling to look at the alternative. Still others...