The compelling case for cross-selling

In a recent blog post, Devon Kinkhead makes the case for eschewing cold calls in favour of cross-selling. He lays out three compelling reasons:

  • It costs more – up to ten times more! – to acquire new customers than it does to maintain and grow existing ones.
  • Customers with more products tend to have longer tenure. The “reinforcing loop” of adding products –> increasing tenure –> using longer tenure to sell more products –> increases tenure … translates to tenure that is 3.4 times that of single-product customers.
  • Customers with longer tenure are more profitable. Kinkhead estimates that an additional year of tenure translates into an increase in household profitability of 27 percent, and that adding a fourth product increases profits 62 percent over a three-product household.


Source: Micronotes.

These are heady numbers, which got me thinking: what do businesses need to be able to cross-sell effectively? And what, in particular, should banks be thinking about when it comes to optimizing their core banking processes?


Be informed and proactive in adding value to your client relationships

Zafin’s whole business is built on the practice of shining light in dark spaces. One of the shadows we explore is banks’ client data, which we extract and deliver back in a way that permits them to differentially price based on the value of the relationship.

By developing a “360-degree view” of the customer, and then servicing clients based on what they know about them, banks can do three key things:

  • Make bespoke offers that build loyalty while protecting bank margins;
  • Improve profitability of client relationships by rewarding favourable client behaviours; and
  • Deepen relationships, increase tenure and – you guessed it – cross-selling success.

A successful cross-selling strategy has to begin with a perception of value, trust, and loyalty on the part of your customers. By investing the time and effort to actually know who your customers are – their transaction patterns, their cross-product holdings, their familial / related accounts, their loyalty activity – banks can nurture all three of these key motivators. And when your clients are your allies, the next product is just a suggestion away.

Learn more about how Zafin helps banks transform how they design, price, offer, and bill for products and services.

This blog post was written by Mike Wallberg, Content Marketing Manager at Zafin. You can email him directly at