Cross-Sell Modeling generally applies when the sales representative has more than one type of product to offer consumers that might be beneficial to them. The experience of many financial institutions shows that the cost of selling an additional product to a current customer is one-fifth the cost of selling the same product to a new customer. We will use the available data points to identify the products that are best suitable for your current customer.
Here are the typical steps that organizations might want to follow in identifying their cross sell opportunities.
- Assess the data and analytic tools already available.
- Determine your KPIs.
- Record selection or suppression rules.
- Identify goals for your marketing team after developing predictive models for up sells and cross sells including deliverability, relevance, accuracy and targeted campaigns.
- Enhanced campaign targeting, greater relevance and cost-efficiency.
- Broaden consumer touch points.
- Enhance the depth of knowledge per record with contact information, census and demography data, attitudinal and predictive behavioral indices, a segmentation schema, etc. This improves targeting, cost per lead/cost per acquisition and analytic process.
- Development of additional targeting tools, and if necessary, records most likely to respond, convert and broaden purchasing.
Daily Life Examples:
- A television brand suggesting its customers go for a home theater of its brand.
- A laptop seller offering a customer a mouse, pen-drive, and/or accessories.