The ‘Marketing ROI’ of existing customer cross-sell is typically 10X that of new customer marketing.
The old saying, “It’s easier to sell to an existing customer than acquire a new one”, still rings true — yet many banks continue to prioritize acquisition over cross-selling. According to an ABA survey, banks allocate 34% of marketing budgets to acquiring new customers but only 23% to retaining and deepening existing relationships, leaving massive growth potential untapped.
The Untapped Opportunity
Most customers maintain relationships with multiple banks, often splitting deposits and loans. By focusing on cross-selling, banks could double their balances simply by encouraging existing customers to consolidate accounts. The ROI on cross-selling is also significantly higher — up to 10x — since marketing to current customers is cheaper and yields higher response rates.
Why Banks Struggle with Cross-Selling
Despite the potential, several barriers hold banks back:
- Sales Mindset: Many view the job as done once a new customer joins, missing the chance to deepen the relationship.
- Misaligned Incentives: Most reward systems focus on new business rather than growing existing ones.
- Lack of Data Insights: Without proper customer data and householding, banks can’t identify cross-sell opportunities.
Building a Successful Cross-Sell Program
Effective cross-selling requires:
- Customer Insight: Aggregate account data and use third-party data to understand customers’ full financial picture.
- Targeted Marketing: Personalized offers increase response rates, improve satisfaction, and maximize profitability.
- Execution & Measurement: Track campaign performance, engage customers directly, and ensure follow-up.
- Aligned Incentives: Reward teams for growing existing relationships, not just acquiring new ones.
Tools to Enhance Cross-Selling
Banks can elevate efforts with marketing automation, CRM systems, and trigger-based campaigns that identify timely opportunities — like customers reducing balances or searching for new products.
The Bottom Line
Cross-selling is the ultimate low-hanging fruit. Your customers already like your bank — they just need a reason to move more business your way. With the right strategy and tools, banks can unlock massive deposit and loan growth while strengthening customer loyalty. If you don’t act, your competitors will.
