Financial institutions are not excluded from the challenges of marketing and keeping a constant flow of customers coming in to seek their services. They have found that one of the most effective sources of new customers is through current customers of the bank.

The cost of attracting new customers has gone up exponentially. It is cheaper and easier to market to an existing customer than it is to try to bring in a new one. The average spend of a repeat customer is 50%-100% more than a new one. That said, financial institutions are better off nurturing and marketing to existing customers. The following are examples of how banks can easily execute this strategy.

1. Start With The Easiest To Reach Implement engagement services that many financial institutions already use such direct deposit, debit cards, online banking, personal credit lines, auto-transfer, bill payments and other so-called "sticky services" in onboarding services program to allow cusomers more use of accounts they already own.

2. Connect With Customers Creating a relationship during the onboarding process is only part of maintaining the positive opinion the customer has of the financial institution. Be sure to inquire about customer satisfaction frequently. In order to effectively cross-sell financial products. the employees must stay connected through SMS text, email, and direct mail.

3. Make Upsell Potential Try not to focus so much on seasonal promotions, but rather focus on products suited for customers based on their transaction history, assets, and the way in which they use the bank's services. Based on a customer's previous history a bank employee may be able to tell if the timing is right to offer certain products and services. Advanced analytics has proven helpful.

4. Encourage Customer-Employee Interactions And Transactions Customers value efficiency in processing of transactions. Release your customer-facing employees from desk-bound activities that take away relationship-building opportunities with customers. The CreditBPO Rating Report is a financial technology tool that automates pre-clearance of commercial loan applicants. The auto-generated strategic profile and actionable recommendations form the bases from which deeper customer engagements can be developed between bankers and clients and be the basis of upselling and cross-selling initiatives. Its data analysis tools allow collective insight to on which to base banks’ marketing strategies. This saves the institution 30-60% of current costs associated with marketing and credit management.

5. Get Referrals Ask your customers for referrals and give them incentives for bringing in new customers. This is more cost-effective and will not only increase customer satisfaction and loyalty but will also improve the financial institution's image. Happy customers will pass the word on and that will drive more business.

6. Reach Customers Offline And Online Make it a point to regularly acknowledge your customer using various communication channels. Online channels and regular face to face contact help to maintain a good working relationship. Customers are more likely to do business with a dynamic bank that understands their needs, tries to constantly provide value to them and rewards their loyalty.

7. Evaluate And Reward Good Teamwork Monitor cross-selling progress in all areas of customer service. Always make sure to measure how close your team is coming to their short term and long term goals as well as how they determine if a customer is a good candidate for a particular product or service. Reward your team members for good results and continued growth. Empower them with technology tools that will accelerate their Know Your Customer efforts, deepen relationships and increase cross-selling bank products and services. @CreditBPO.