Cross-sell. Up-Sell. Trans-Promo. Bundling. There are a bunch of marketing terms to describe the process marketers go through to get clients of one service or product to buy another, and another.
So why all the fuss?
Lots of reasons:
- It’s easier to sell happy current clients than strangers. You already know them. You have them in your existing database. You already have reputational equity with them.
- It’s less expensive to sell current clients than strangers. You don’t have to pay for advertising to reach them. You don’t have to do extensive (and expensive) market research to find out who they are.
- Stickiness. Clients with more than one product are less likely to leave you. It’s a hassle to find other providers for each product in the bundle, so even if a client becomes dissatisfied with one of the bundled services, they are less likely to switch.
- Increased Profits. By some estimates, bundling in the banking sector can increase profits 15–30%! Spending goes up and your costs go down. Consumers have been proven to spend more when offered a bundle that touts significant savings – even if the same consumer hadn’t intended to buy the same products individually. On the cost side of the equation, your administrative support, billing and accounts receivables handling costs are all in direct correlation to the number of individual accounts you service. Fewer accounts to manage for the same # of products sold = lower costs.
So great, bundling is a good thing on all accounts. But are your enterprise customer communications management systems able to help you target, offer, and fulfill bundled options to your clients? If your customer account and billing databases for each product are separate, you may not have the ability to target specific clients and create and deliver customized offers within your existing communications vehicles (bills, statements, emails, etc.). Your call center rep’s may not even be able to see a complete picture of each client’s relationship with you, so they’re flying blind and can’t cross sell either.
System, application, and database disconnects are often the reason companies fail to grow client relationships, stickiness and profits from bundling. Poor enterprise customer communications management is a problem that causes pain to multiple parts of the organization: Marketing is stymied in creating effective bundling programs; Call Center Ops is thwarted from contributing to revenue growth; Finance is hog-tied to cutting operational costs instead of increasing RPU (Revenue per User).
But who is going to stand up and say – ENOUGH. Who’s going to say “Let’s look at this issue across the organization. Let’s combine our pain and the ROI of the opportunity in each part of the business. Let’s fix this.” There are tools, methods, and solutions that don’t require forklift upgrades of all our systems. This doesn’t have to be a multi-year herculean effort.
By marshaling the needs and objectives of several parts of the business to fix a single problem that affects them all, companies can improve customer communications management, reduce costs, increase profits and generally increase happiness.