Posts Tagged ‘Up-selling’

Money in the bank

January 16, 2012 Leave a comment

“I am way behind my target.” This young sales guy sitting across the table would tell me and I pointedly ask – “By how much are you short?”

There would be an immediate response for this one – because they are being drilled day-in and day-out by the Supervisors on this parameter and its hard-wired into their head.  The answer would be –

“I have to do 5 more policies in the next 2 days.” Or

“I am short by 20 numbers to reach my target for this quarter.”

You notice it’s a number, it’s measurable, but still a low impact one – is business being run on number of customers or Rupees and Paises?

In the article titled Bring Home the Bacon we discussed why value has to be maximized in each sale. That we must constantly look for opportunities to up-sell and fight hard to avoid giving away too many discounts. This is done by adding value to your product / service at every stage of the sale. Price should become a low priority item for the customer.

Is this on your radar all the time? What are you doing to increase focus on revenue generation?

When the focus of the Sales Team is on numbers of New Accounts acquired its easy to believe that everything is hunky dory once the number target is achieved – they close business without assessing the business generation potential of the account. Forms are filled up and submitted and there is a big cheer at the end of the review period when they find that the “numbers have been achieved”.

As Business Managers shouldn’t the focus be on  income generation and profit – shouldn’t the following be the parameters being chased:

–          In Insurance: Premium amount collected rather than number of forms submitted

–          In telecom: Revenue generated per account per month and not number of accounts

–          In Banking: Average Value of new business closed

If you are already tracking your business in this manner … Fantastic!

If not I think there is case in favour of following this methodology instead of just chasing Number of Accounts. It surely looks good on paper to say we have the highest number of accounts but it may not make business sense.

For example, Facebook can say “If we were a  country, we would be the 3rd largest in the world by population” and win some brownie points.  But their Ad revenue could be less than that of a competitor, say Google, who have fewer users but are popular among the high–networth customers and hence achieve high ad revenues. I have just given a hypothetical situation to illustrate a point – have not done the research to confirm the actual numbers – so please don’t quote me on this one!

The purpose of business is profit and value creation – as Managers when you drive business there is need to create visibility every day on how much money is being generated and how much closer each person is on achieving the annual revenue target.

Business growth will be robust when that’s done and you will be right on the money!


Secret Service?

January 14, 2012 4 comments

Four months back I started a Business Account (Current Account) with one of the Nationalised Banks. Needed it fast and a friend worked at this bank, so I got the account activated in couple of hours – and they are more relaxed on the minimum balance to be maintained as compared with the newfangled private banks.

A week back I went there to deposit a cheque – after the transaction I asked for the location of another bank because I had to deposit some cash into the account of a friend who maintains an account with that bank.

The Officer told me that I can deposit amounts into other bank accounts in my bank itself for a small fee. I was pleased that a trip could be saved by paying such a small fee.

Then I want to go one step further – my personal account, with a private bank, could be operated from home thanks to the Internet Banking facility. So I asked the man whether his bank had the facility too.

“I can save a lot of time and avoid the trip if I have Net Banking,” I told him.

He casually tells me – “Sir, we have all the facilities the other banks have and we started it before them.”

He was trying to impress me by saying that. But it had the opposite effect.

I wanted to say  “Why didn’t you give me all these facilities when I started the account, you Smart Ass? You didn’t even mention it!”

“How do I start using Net Banking?” is what I asked instead.

He gave me the necessary form and said it will take 7 day to get the PIN number – I had to make another visit to the bank to collect it.

When I started the account with the Private Bank, they sent a Rep to my office to collect the forms, all the service activation was done on Day-1 and the PIN voucher for activating the Internet banking facility was mailed to me.

My questions to all of you:

– Are you losing opportunities to grow revenue by not informing your customer about all the services available?

– Are you waiting for the customer to ask?

– Is Service Activation customer – friendly?

– Are you educating them on the use of the services?

We keep worrying about increasing revenue and profits but fail to use the opportunities available.

Are you going to tell the world about everything you have on offer … or do they need to hire CIA / KGB to find out?

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