The opportunity: cross-selling to existing account holders
According to studies conducted by VPS LAC, account holders respond more to credit card offers from institutions they currently have a relationship than those they don’t. This also means the cost of acquisition is lower for these existing account holders. In addition, choosing clients that already have a banking relationship with your institution lowers the risk new cardholders bring because their transactional behavior is already known.
Finally, cardholders with multiple products from the same bank tend to have a better customer experience and are more loyal to that bank’s brand.
Solutions and benefits
Visa Performance Solutions can help you develop successful, targeted products for existing customers with our Strategic Cross-Sell Service. Our service reveals the best candidates from your existing client-base in order to approach them proactively with a Visa credit card offer, which strengthens the customer relationship and may improve your portfolio performance.
At the conclusion of this engagement, you will be able to:
- Strengthen your institution’s relationships with your customers, leading to a higher level of satisfaction and loyalty
- Understand your customers’ needs along with the opportunity to provide added value to your most profitable customers
- Obtain efficient growth of the credit card portfolio by increasing the rates of response to offers while also controlling the level of risk
- Optimize portfolio return by reducing customer acquisition costs
- Analyze your institution’s assets and liability portfolios.
- Determine the customer’s risk level by designing a risk score card, or modifying an existing score card.
- Define a customer’s propensity to accept cross-sell credit card offers through a response model.
- Design a financial model that enables you to efficiently target customers, prioritizing those that provide the most opportunities for your institution.
- Develop a methodology to optimize marketing channels based on your institution’s capabilities and the characteristics of each customer.
Get started now
Please contact us for more information about the strategic cross-sell project.