Cross-selling in financial services

An established credit card and financial services provider needed help competing with new products in a penetrated market. The client wanted to capture more revenue per customer by cross-selling. Bain's analysis identified profitable customers for cross-selling, and the company's revenues for customers that did buy the product increased by 65% or more.

FinancialServiceCo is an established credit card and financial services provider. The company faced increased competition and an increasingly penetrated market. It wanted to sell a new financial services product to a fixed customer base and limit its competitors' share of wallet.

However, FinancialServiceCo did not know which customers were the best targets for cross-selling the new financial services product.

The company asked Bain to address four key questions.

Which customer segments would prove most profitable for their new product?
How can the segments be identified and evaluated?
What will the profitability be by customer group?
What revenue stream overlaps should FinancialServiceCo consider?

Next Approach

The project's goal was to capture a larger share of customer revenues by cross-selling.

Next Recommendations

Bain determined that, on average, cross-selling the new product would increase individual customer spend and profitability.

Next Results

Bain analysis identified profitable customers for cross-selling. Revenues increased by 65% or more for those customers that chose to spend on the new product.