The Financial Brand: Cross-selling to Gen-Y banking consumers
Wednesday, March 19, 2014
Posted by: Rob Rubin via The Financial Brand
72% of of adults under age 30 who are shopping for checking accounts are also in the market for other banking products. To capitalize, institutions must align their channel experiences, offer rewards for deeper relationships and focus on cross-selling in the branch.
A survey of checking account shoppers on FindABetterBank and found that 63% of these shoppers are also shopping for other banking products. Seventy-two percent of shoppers under 30 are shopping for more than just a checking account – 36% also want a savings or money market account and 26% also want a credit card.
We do a lot of one-on-one observational research of consumers shopping for banking products. One observation we see almost without exception — especially among young consumers — is how product-centric they are while shopping online: They look for the best checking account, credit card or savings account and most don’t care if each product comes from a different institution. This is a real challenge for financial marketers because growth depends on customer (or new member) acquisition and cross-selling. Most institutions would fail if all of their customers had only one product.
But based on every indicator, young consumers are the ripest segment to cross-sell, despite their product-centric shopping behaviors. Why? Consumers under 30 are actually less likely to open an account online than older consumers, and they’re more likely than older shoppers to use two or more channels during their buying process.
How should financial institutions capitalize?
Align channel experiences. Research has revealed that younger consumers would rather open accounts in branches because they want to make sure they’re getting what they really need. When we observe Gen-Y consumers, we see how a poor online presentation eliminates many institutions from consideration. One way to align channel experiences is to train the branch sales staff to sell using website content instead of the traditional tri-fold brochure. Of course, branch staff can’t effectively use the website to sell if it isn’t working when shoppers are alone online at home.
Read Full Article