It’s remarkable how many more products I buy on Amazon thanks to its recommendation features. Just by listing “Products Customers Bought Together,” I inevitably start exploring new items and often add some to my cart. It’s the digital equivalent of going into a supermarket for a gallon of milk and walking out with a week’s worth of groceries.

The retail industry has spent decades refining the cross-sell, both in-store and online. Placing snack foods like chips and pretzels next to the beer, for example, boosts sales of both. Or adding a Point-of-Purchase display with beach chairs, towels, sand pails, and sunblock during the summer months.

The digital space adds another layer of sophistication, where cross-selling is proactive and highly personalized. “Yes, I do need a case for my new mobile phone. And these noise-canceling headphones look interesting.” By understanding the exact product a consumer is buying, the retailer can make better cross-sell recommendations. 

In fact, e-commerce has grown every quarter since Q2 2009 in the US, according to Digital Commerce 360, currently accounting for 22% of all retail. Cross-selling is central to that growth, allowing retailers to expand their share of wallet through online and mobile sales.

Credit unions and banks can draw valuable lessons from retail’s best practices to boost revenue and build loyalty. The key is personalized cross-selling — meeting members and customers online at the precise moment they need additional services. This is known as the “Moment of Truth,” when a buyer has a need and is most receptive to cross-sell offers.

Cross-selling can be highly effective in financial services too, enabling credit unions and banks to offer highly relevant products at exactly the right time. For example, a scented shampoo is a nice-to-have add-on for someone buying lavender soap. Auto insurance offered as part of the car loan approval notification, however, is a must-have. 

Not all members and customers may opt for insurance from your financial institution, but by offering it during the Moment of Truth, you can significantly increase the number who do. This extends a convenience for members and customers while generating new revenue for your institution.

Consider how most financial institutions simply compile a list of members or customers who have recently been approved for a car loan. Eventually, an employee will reach out to see if they need insurance. But it’s almost always too late, as the member or customer has likely already secured insurance and is driving their new car. Offering insurance from your financial institution within the Moment of Truth is really the only time to successfully cross-sell it.

Think about all the other products and services your organization could cross-sell to expand your share of wallet and grow revenue. A new business might require corporate credit cards, a deposit account, and business insurance after securing an SMB loan. A larger company might need treasury management or investment services. A new homeowner might need insurance and be open to a credit card offer. 

The key is to capitalize on the Moment of Truth with the most relevant, in-demand products. While the retail industry is light-years ahead of financial services in digital cross-selling, credit unions and banks can leverage the e-commerce playbook to develop their own effective cross-selling strategies and boost revenue. Look for technology that can enable cross-selling as part of account opening and digital lending. 

In today’s highly competitive landscape, financial institutions must embrace new growth paths. Cross-selling is a prime opportunity. To learn more, read our whitepaper: Cross-Sell to Turbocharge Growth and Strengthen Loyalty.