Cross-selling the key to success
Most financial services groups have failed to cross-sell products to existing clients,
according to Surfboard International managing director Don Hagans.
Most financial services groups have failed to cross-sell products to existing clients,
according to Surfboard International managing director Don Hagans.
“Few people buy many products from the same provider. In fact most consumers have less than two products per provider. With all the money spent on cross-selling, that works out as being not that successful,” Hagans says.
“As consolidation happens there is concern that customer relationship management (CRM) is not affecting cross sales or even client retention.”
The failure to cross-sell products is largely due to an inability to understand clients needs.
Hagans says investors are seeking investment services in a manner akin to Microsoft’s Outlook software - the industry providing tools and functions as standard, much like the email and personal organiser software.
“Consumers want something that functions like the Outlook program which has contacts, journals and a messaging facility. Transferred to financial services, this equals shares and funds management, reporting and communication with advisers and managers for start-ers,” Hagans says.
“This is the type of model consumers are now starting to look for. Getting and keeping them will be part of the next wave.”
The key to retention will be intimacy. Hagans says the industry will move from a pure oversight or advice position to take on a closer role with investors reaching their goals, as the result of content aggregators supplying the former on a free basis.
“The key to intimacy is engage clients long term financial well being, educate through tools, empower through a choice of products and evoke a response by planning for a suc-cessful conclusion,” Hagans says.
“There is money at many levels and advisers need to segment and work on each piece without letting the back office takeover. The trick is to do that in a way that others do not and thus offer intimacy with your clients in ways that others cannot match.”
AUTHOR
Jason Spits
Recommended for you
ASIC’s court case with Interprac is causing advisers to explore the possibility of self-licensing, according to My Dealer Services, as they observe the reputational damage it can bring to a practice.
AZ NGA has entered a strategic partnership with a Sydney advice firm with $600 million in assets under advice to support its succession plans and future growth.
With complaints on the rise and an expanded jurisdiction, the Australian Financial Complaints Authority is on the hunt for four C-suite roles, three of which are newly-created positions.
Ahead of the 1 January 2026 education deadline for advisers, ASIC has issued its ‘final warning’ to the industry, reporting that more than 2,300 relevant providers could be on their way out.
