cross-selling

• Cross-Selling

https://store.theartofservice.com/the-cross-selling-toolkit.html

Mergers and acquisitions - Improving financial performance

1 Cross-selling: For example, a bank buying a stock broker could then sell

its banking products to the stock broker's customers, while the broker can sign up the bank's customers for

brokerage accounts. Or, a manufacturer can acquire and sell

complementary products.


Subscription business model - Effect on the vendor

1 Additional benefits include a higher average customer lifetime value (ACLV) than that of nonrecurring

business models, greater customer inertia and a more committed

customer base as it transitions from purchase to opt-out decisions, and

more potential for upselling and cross-selling other products or

services.https://store.theartofservice.com/the-cross-selling-toolkit.html

Affinity analysis

1 This information can then be used for purposes of cross-selling and up-selling, in addition to influencing

sales promotions, loyalty programs, store design, and Discounts and

allowances|discount plans.


Affinity analysis - Examples

1 This information will enable the retailer to understand the buyer's

needs and rewrite the store's layout accordingly, develop cross-

promotional programs, or even capture new buyers (much like the

cross-selling concept)


Affinity analysis - Business use

1 Amazon.com|Amazon uses affinity analysis for cross-selling when it recommends products to people

based on their purchase history and the purchase history of other people

who bought the same item


Merger - Improving financial performance

1 *Cross-selling: For example, a bank buying a brokerage firm|stock broker could then sell its banking products

to the stock broker's customers, while the broker can sign up the bank's customers for brokerage

accounts. Or, a manufacturer can acquire and sell complementary

products.


Triple play (telecommunications) - Deployments

1 Providers expect that an integrated solution will increase opportunity costs for customers who may want to choose between service providers, permit more

cross-selling, and hold off the power companies deploying G.hn and IEEE P1901 technology with its radically superior service and deployment

characteristics for at least another decade or so.


On-hold messaging - Custom-designed MOH

1 CDs (or other MOH formats, such as MP3 files) can be custom-created to suit the

particular needs of a business. The announcements can be scripted to

emphasize particular attributes of the business such as location, store hours, or special promotions or services. These are

typically used for up-selling and cross-selling callers. Companies can either record the messages themselves, or hire a music on

hold production company.


Sears Holdings Corporation - 2000s

1 Sears Holdings has begun cross-selling merchandise between its two

brands. For example, Craftsman (tools)|Craftsman tools are now

available in Kmart stores; they were previously exclusive to the Sears brand. However, Martha Stewart

brand paint colors are now no longer available at Sears.


Same store sales

1 Growing same store sales can be explained by a number of reasons, including: marketshare gains in a

retailer's trade areas; higher average purchases and/or more frequent customer visits; and successfully

cross-selling into a broader product range or upselling to more expensive

ones.


Norwest - 1990s

1 His focus was on smaller customers, checking account depositors and

small businesses, and he aimed to build relationships with them that would lead to cross-selling of other financial services - an auto loan, a

mortgage, insurance, a mutual fund, and so on


Norwest - 1990s

1 It was also in this cross-selling that the main units of Norwest - the retail bank, the finance company, and the mortgage company - fit and worked

together


Predictive Analysis - Analytical customer relationship management (CRM)

1 Analytical Customer Relationship Management can be applied

throughout the Customer lifecycle management|customers lifecycle

(Customer acquisition management|acquisition, Cross-selling|relationship

growth, Customer retention|retention, and win-back)


Predictive Analysis - Cross-sell

1 For an organization that offers multiple products, predictive analytics can help analyze

customers' spending, usage and other behavior, leading to efficient cross-selling|cross sales, or selling

additional products to current customers


HP Enterprise Business - Organizational structure

1 The three business segments-- ESSN, HP Enterprise Services and HP

Software Division -- are structured beneath the broader Enterprise Business (EB) Group in order to

capitalize on up-selling and cross-selling opportunities, and give a

solution sale approach across the HP enterprise offerings.


Wells Fargo Bank - Cross-selling

1 Other banks have attempted to emulate Wells Fargo's cross-selling practices (described by The Wall

Street Journal as a hard sell technique); Forbes magazine

describes Wells-Fargo as better than anyone at the practice.


Bank - Business model

1 * First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with investment and insurance houses. Merging banking, investment,

and insurance functions allows traditional banks to respond to

increasing consumer demands for one-stop shopping by enabling cross-selling of products (which, the banks hope, will

also increase profitability).https://store.theartofservice.com/the-cross-selling-toolkit.html

Citigroup - Travelers Group

1 The new company took the Primerica name, and employed a cross-selling

strategy such that each of the entities within the parent company aimed to sell each other's services


Cross-selling

1 In practice, businesses define

cross-selling in many different ways


Cross-selling

1 Unlike the acquiring of new business, cross-selling involves an element of risk that existing relationships with

the client could be disrupted. For that reason, it is important to ensure that

the additional product or service being sold to the client or clients enhances the value the client or clients get from the organization.


Cross-selling

1 In practice, large businesses usually combine cross-selling and up-selling techniques to enhance the value that

the client or clients gets from the organization (and vice versa).


Cross-selling - Cross-selling of professional services

1 Though there are some ethical issues with most cross-selling, in some cases they can be huge. Arthur Andersen's dealings with Enron

provide a highly visible example. It is commonly felt that the firm's

objectivity, being an auditor, was compromised by selling internal audit

services and massive amounts of consulting work to the account.



1 Though most companies want more cross-selling, there can be substantial barriers:



1 This kind of cross-selling helped major accounting firms to expand their businesses

considerably



1 Though common, that kind of cross-selling can leave a customer feeling poorly used



1 The third kind of cross-selling can be called selling a solution. In this case, the customer buying air conditioners

is sold a package of both the air conditioners and installation

services. The customer can be considered buying relief from the heat, unlike just air conditioners.


National Australia Bank - Customer Relationship Management changes

1 the system was reinvigorated in 2004/5 as part of the broader

turnaround to support the new focus on cross-selling.


Mini tablets - Application market

1 Apple, Google, Amazon and Barnes Noble all adopted the strategy. The latter originally

allowed arbitrary apps to be installed, but, in December 2011, excluded third parties. Apple

and IBM have agreed to cooperate in cross-selling IBM-developed applications for iPads and

iPhones in enterprise-level accounts.[http://recode.net/2014/07/15/apple-and-ibm-team-up-to-push-ios-in-the-enterprise/ Arik Hesseldahl (2015), Apple and IBM Team Up to Push iOS in the Enterprise] accessdate=2014-

07-15


Boutique

1 In late 1990s some European retail traders developed the idea of

tailoring a shop towards a lifestyle theme, in the form of concept

stores,http://www.earthtimes.org/articles/show/borders-unveils-first-

concept-store,279823.shtml which specialised in cross-selling without

using separate departments


Loan origination - Agent Assisted (Branch-Based) Loan Application

1 From a bank's standpoint, cross-selling products to current customers

offers an effective marketing opportunity, and agents in branches may be trained to handle the sale of

many different types of financial products


Uplift modelling - Introduction

1 Uplift modelling uses a randomised control group|scientific control to not only measure the effectiveness of a marketing action but

also to build a predictive model that predicts the incremental response to the marketing

action. It is a data mining technique that has been applied predominantly in the financial

services, telecommunications and retail direct marketing industries to up-selling|up-

sell, cross-selling|cross-sell, churn and Customer retention|retention activities.


Up-selling

1 In practice, large businesses usually combine upselling and cross-selling

techniques to maximizing the business's profit


Up-selling - Overlap with cross-selling

1 Upselling can be difficult to divorce from cross-selling when not entailing a more expensive substitute, it can

instead simply refer to bolt-ons recommended by the manufacturer, trade federation, common practice, or regulators. A simple example is

that of expensive leather shoes, where the seller may suggest to buy

a waterproofing spray as well to make the shoes last.


Beach Party - Production notes

1 In one of the first instances of film cross-selling, AIP took advantage of the target

demographic of this film to promote another in a different genre, when at the very end of the credits – after giving A Special thanks to Vincent Price for appearing as Big Daddy –

the title reads Soon to be seen in The Haunted Palace, a AIP horror film that would

be released on August 28, 1963 – just weeks after the release of Beach Party.


Ohio Lottery - Powerball

1 A ticket bought in Ohio for the June 2, 2010, Powerball drawing became its

first potential Powerball jackpot winner; it is the first time a lottery

selling 'either' Mega Millions or Powerball ('but not both') on January

31, 2010 sold a jackpot-winning ticket for its newer game after the cross-selling expansion date. The

ticket is worth $261.6 million (annuity).


Texas Lottery - History

1 As part of the cross-selling arrangement between the operators of Mega Millions and Powerball, the Texas Lottery Commission agreed to

begin selling Powerball tickets on January 31, 2010; the first drawing

including Texas was three days later.


History of Wells Fargo - Later acquisitions

1 Its strategy echoed that of the old Norwest: making selective

acquisitions and pursuing cross-selling of an ever-wider array of

credit and investment products to its vast customer base


Lucky For Life

1 Lucky For Life is one of three lottery games available throughout New

England. (The 2009 Mega Millions/Powerball cross-selling agreement allowed American

lotteries, which could each offer 'either' national game before January

31, 2010, to add the other on that date. Five of the six lotteries

immediately added the other game; Maine joined Mega Millions on May 9,

2010.)


Louisiana Lottery Corporation - Mega Millions (multi-lottery game)

1 Perhaps surprisingly, Louisiana did not participate in the cross-selling

expansion of Mega Millions and Powerball on January 31, 2010. As of October 27, 2011, there are 46 US

lotteries; 43 offer Mega Millions 'and' Powerball, while California Lottery|California offers only Mega Millions.


Powerball - The 2010 expansion of Mega Millions and Powerball

1 On March 1, Montana (by joining Mega Millions) was the first state to join the other game after the cross-

selling expansion


Powerball - Cross-sell expansion of 2010

1 On March 13, 2010, New Jersey became the first previous Mega Millions-only member

(just before the cross-selling expansion) to produce a jackpot-winning Powerball ticket. It was worth over $211 million annuity; it was

sold in Morris Plains, New Jersey|Morris Plains. On May 28, 2010, North Carolina became the

first previous Powerball-only member (just before the cross-selling expansion) to

produce a jackpot-winning Mega Millions ticket; that jackpot was $12 million (annuity).


Powerball - Cross-sell expansion of 2010

1 Ohio's second Powerball jackpot-winning ticket, sold for the June 23, 2010 drawing, was part of another first; since Montana also provided a jackpot winner for that drawing, it

was the first time two lotteries shared a jackpot where the two lotteries sold competing games

before the cross-selling expansion, as Montana sold only Powerball before

the expansion date.https://store.theartofservice.com/the-cross-selling-toolkit.html

Multi-State Lottery Association - Members

1 MUSL's membership consists of 33 Lotteries in the United States|

lotteries, including those of the Washington, D.C.|District of

Columbia, and the Virgin Islands,[http://www.musl.com/musl_member

s.html MUSL - Members] which offered Powerball prior to the January 31, 2010 beginning of cross-selling

with the 12 lotteries operating Mega Millions.


Delaware Lottery - Mega Millions

1 On October 13, 2009 the Mega Millions consortium and MUSL

reached an agreement in principle to cross-sell Mega Millions and

Powerball in US lottery jurisdictions. The Delaware Lottery added Mega Millions on the date of the cross-

selling expansion, January 31, 2010.


D.C. Lottery - Mega Millions

1 On January 31, 2010, most U.S. lotteries with either Mega Millions or

Powerball began offering both games. The D.C. Lottery added Mega

Millions on the cross-selling expansion date. The largest Mega

Millions jackpot was over $650,000,000.


Vermont Lottery - Mega Millions

1 In October 2009, the Mega Millions consortium and MUSL reached an agreement to cross-sell Mega Millions and Powerball in

American lotteries wishing to offer both games. The Vermont Lottery added Mega Millions on January 31, 2010, the cross-

selling expansion day. Mega Millions is drawn Tuesdays and Fridays; its jackpot starts at

$12 million. Players choose 5 of 56 white ball numbers, and a gold-colored Mega Ball; the

latter is numbered 1 through 46.


New Hampshire Lottery - Mega Millions

1 Mega Millions became available in New Hampshire on January 31, 2010,

the cross-selling expansion date whereby Powerball was made available in Mega Millions-only jurisdictions, and vice versa.


Boutiques

1 In the late 1990s, some European retail traders developed the idea of tailoring a shop towards a lifestyle theme, in what they called concept

stores,http://www.earthtimes.org/articles/show/borders-unveils-first-

concept-store,279823.shtml which specialized in cross-selling without

using separate departments


The Big Game (Mega Millions) - The Big Game

1 The Georgia Lottery was a member of MUSL at the time and wanted to

sell both games for the remainder of 1996; however, within a few days, Georgia was forcibly removed from

MUSL, returning with the 2010 cross-selling expansion.


The Big Game (Mega Millions) - The Big Game Mega Millions

1 When Texas joined Mega Millions in 2003, it began offering an option, initially available only

to Texas Lottery players, known as the Megaplier, which was similar to the then-current version of Powerball's Power Play. The 11 Mega

Millions lotteries without Megaplier on the January 31, 2010 cross-selling date gradually

added the multiplier option; by January 2011, all Mega Millions lotteries, except for California, offered the Megaplier. The Texas Lottery owns

the trademark to Megaplier.


The Big Game (Mega Millions) - 2010 cross-sell expansion

1 On March 13, 2010, New Jersey became the first Mega Millions participant (just before the

cross-sell expansion) to produce a jackpot-winning ticket for Powerball after joining that game. The ticket was worth over $211 million annuity (the cash option was chosen). On May

28, 2010, North Carolina became the first Powerball member (just before the cross-selling expansion) to produce a jackpot-

winning Mega Millions ticket after joining Mega Millions, with an annuity jackpot of $12 million.


The Big Game (Mega Millions) - Miscellany

1 Except for the 2010 cross-selling expansion, this was the only time The Big Game, Mega Millions or Powerball simultaneously added

more than one lottery.


HSBC Finance - United Kingdom

1 In the United Kingdom, HFC Bank is a sub-prime consumer lender. Its

branch network originally consisted of around 125 Beneficial Finance

branches. Since Household International's acquisition by HSBC, HFC Bank has worked increasingly closely with HSBC Bank (Europe)|

HSBC Bank plc particularly for cross-selling purposes.


Tesco Bank

1 The bank offers a range of insurance, credit cards, loans, savings,

mortgages and travel products, and launched a current account in June

2014. A unique selling point of Tesco's banking products is that the

bank is able to leverage its large customer base to Cross-selling|cross-

sell financial services products, as customers can accumulate Tesco

Clubcard points when they purchase finance products.


Montana Lottery - Mega Millions

1 Most lotteries with either Mega Millions or Powerball prior to January 31, 2010 added the other game on that date. The Montana Lottery

added Mega Millions on March 1, 2010, becoming the first lottery to add the other game after the official cross-selling expansion about a month prior. Unlike most of the 12 Mega Millions members that had the game before the cross-

selling expansion, Montana offers Mega Millions' multiplier, called Megaplier, which is similar (but

not identical) to PowerPlay.


Pennsylvania Lottery - Mega Millions

1 (Of the original 12 Mega Millions lotteries, only Texas Lottery|Texas

offered Megaplier before, and on, the cross-selling expansion date.)

Eventually, a second-prize Mega Millions ticket with Megaplier

activated was guaranteed to win $1,000,000, regardless of the

multiplier


New Era Tickets

1 New Era Tickets provides a ticketing platform with services that include

internet ticket sales, order fulfillment, customer service, access control and print-at-home technology, up-selling

and cross-selling, stored value technology, online ticket exchange,

and ticket auctions.


118 118 (UK) - Criticism

1 118 118 defended this cross-selling of services, suggesting it was partly

because firms had not paid to be included on its database


For More Information, Visit:

• https://store.theartofservice.com/the-cross-selling-toolkit.html

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