Zugl.: Regensburg, Univ., Diss., 2009

Customer retention has been shown by academic researchers to be more profitable than customer acquisition. However, its implementation in the business environment has not been so successful. One of the reasons for this is that customer retention can be achieved in several ways (i.e. loyalty programs, affinity cards and switching costs) and that the translation from the concept of “retaining customers” to the actions and strategies to retain them is not always easy. One of the most attractive strategies to ensure that customers remain within the organisation is through cross-selling and up-selling. In short, the objective is to increase the number (or the value) of the products that a customer buys from a company to make it more difficult for him/her to leave. Whilst academic research has deeply investigated the concepts of loyalty, retention programs and trust, amongst others, cross-selling has not received the same level of attention. Moreover, existing research on cross-selling has been focused on products rather than on services. Finally, this research has mostly been conceptual in nature, with limited attempts to model or design practical cross-selling and up-selling strategies. In order for crossselling and up-selling to be effective retention strategies, they need to be tailored to the needs of the customer. The offer must be adequate in terms of the target (who is going to buy the product), the content (what is going to be purchased) and a time (when is the right moment to offer the new product). This thesis investigates customer retention and cross-selling and up-selling from a practical point of view in the financial services industry. Firstly, it assesses the importance of the concepts of customer retention and cross-selling and up-selling through several interviews conducted with financial services providers (insurance companies, building societies and independent financial industry bodies). Having established the relevance of these concepts in the industry, the next step developed and applied a framework to design cross-selling and up-selling strategies. This framework, named the “Who-What-When” framework, was applied to the transactional and customer data bases of two financial services providers (a Spanish insurance company and a UK building society). The “Who-What-When” method ii begins by segmenting the customer base in order to understand the characteristics and potential of each customer. It then, moves to modelling purchase propensity models, understanding the relationships between products in order to determine what product should be offered to each segment, according to their characteristics and their consumption history. Finally, it analyses the time sequence of the purchases in order to determine the right time (when the purchase is more likely to occur) to approach each customer, bearing in mind how they behave and the maturity of the products already held. The contribution of this thesis is twofold. From an academic point of view, the research demonstrates the importance of customer retention and cross-selling in the financial services industry, being both recognised as key strategic and tactical approaches for the future of the industry. Secondly, from a practical point of view, it contributes by developing an analytical framework to discover and design crossselling and up-selling strategies, aimed at retaining customers. This is achieved through the ‘Who-What-When’ framework which takes into account customer characteristics, consumption patterns and acquisition sequence to model cross-selling activities. Therefore, it refutes the traditional approach that ‘one size fits all’, advocating tailored strategies. Finally, this research highlights, from the empirical analysis, how repurchase decision is highly influenced by the length of the relationship with the provider and the type of products already purchased. Understanding these factors is key to successfully retaining customers via crossselling.

Bachelor-Arbeit Univ. St. Gallen, 2005.

Abstract In Taiwan¡¦s production structure, after joining the WTO in 2002, it has to face the global competition. Both the government and the professionals realized the urgency in facing the change of the financial structure. Deployments were made to enhance the competitiveness of banks such as passing a law of amalgamation of banks (2000), six regulations were launched out related to financial matter¡]2001¡^, permission is given to establish financial holding companies and so on. Whether the establishment of financial holding mechanism can respond efficiently to the overall challenges? Can it exercise the effect of synergy and achieve the so called 3 C effects e.g. Cross selling¡B Cost saving and Capital deployment ? It is a question worth our wide to investigate. In the 3 C effects, crossing selling relates to the short term, middle- term and long term business of financial holding. It directly affects the customers¡¦ willingness of saving and contribution. This is a key factor for financial holding to consider. This thesis mainly aims to investigate the cross selling strategy, it policy making process and effectiveness. In analyzing companies Cathay Holdings¡B Taishin Holdings and Mega Holdings have been chosen as our case studies. It is because they have good records in profit making. Also they represent 3 different types of financial holdings when the main companies and their subsidiaries have their own characteristics. Based on three selected companies,we selected the senior managers which are in charge of the decision making for cross selling,to have the broad interview.By collected the primary data,then go to do the comparison & analysis with the second data. In our studies we try to employ ¡§customers which financial holding can be mobilize¡¨ and ¡§human resource in the service¡¦ as the two variables to analyze the phenomena of the cross selling in the model of ¡§Cross Selling Cross Section analysis¡¨. Also in the context of ¡§distant customers¡¨ and ¡§distant products¡¨ , we find out six crossing selling patterns. By doing this we further investigate the cross selling and offer our suggestions. In our analysis we discover the targeted companies has differences and similarities in cross selling strategies. Their senior managements all agree that cross selling is an important strategy in financial holding, and they actively involve into that enterprise. In term of policy making in cross selling, there is lack of long term policy but emphasize on individual cases. There is absence of structural mechanism and cultural in cross selling, and the customers have not established their confidence in financial holdings. The review in risk management is lacking. The consumers¡¦ habits on cross selling haven¡¦t established yet. The financial holding companies haven¡¦t developed a strategy to integrate the know-how which subsidiary companies execute cross selling. In this research findings there are some suggestions in seven areas offered to the concerned parties for their considerations. Key words: Cross Selling, Financial holding company, FHC Marketing Strategy.

Thesis Statement Dated on June 27th, 2001 "(Financial Holding Company Act) has completed the legislative procedures. New-style financial holdings companies have initiated a new era of competition and cooperation. Under this circumstance, for the sake of survival, apart from innovating new financial products, security companies take proactive approaches in the direction of full-scope financial planning. These new financial products include stock trading in Taiwan, futures, stock options, other derivative instruments like bonds, consignments, insurance deputy, and duplicated-brokerage offshore trading. To respond to the above changes, in parallel, sales force in security companies is forced to change their roles from single-product market maker to the full-scope financial advisor. To promote and sell various financial products simultaneously, the sales force is required to quickly learn the relevant knowledge of various newly invented products, related rules and regulations, and risk management. This paper adopts the attempt to understand the impact on the sales force under the circumstances of cross selling of various products. It discusses the relationship of satisfaction of employee compensation, benefits and training, to employees¡¦ work devotion. It further examines the differentiation and interconnection of various factors above. In terms of research approach, I took employees in local securities company as samples. By extracting information from 272 valid questionnaires out of a total of 280, various analyses are conducted with SPSS software, including creditability, Pearson, ANOVA and regressive analysis, to ultimately test the assumption of this research. The results of the paper is summarized as below 1. Significant positive relationship between awareness of compensation/benefit satisfaction and work devotion of cross selling sales force 2. Significant positive relationship between sales training and work devotion of cross selling sales force 3. Significant positive relationship between work devotion and work performance of cross selling sales force 4. Significant positive relationship between awareness of compensation and benefit satisfaction and performance in cross selling sales force 5. Significant positive relationship between training and work performance of cross selling sales force 6. Academic background plays an important role of differentiation in training for cross selling sales force Key words: cross selling, work devotion, training, compensation and benefits satisfaction, work performance

Thesis (M.M. (Strategic Marketing))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2015. / Cross-selling remains the easier and most cost effective option for companies to grow revenues and achieve profitability as compared to growing revenue by acquisition of new customers. Many firms are seeking to grow their revenue and achieve high levels of customer loyalty. These firms and industries across the world are turning to cross selling as the solution. Many factors, such as merger and takeovers, result in firms having multiple product lines and silos with sales people focused according to these product divisions. What becomes more difficult is identifying which factors will lead to more integrated teams that are motivated to engage in cross selling. This study seeks to address some of the challenges that result in lower motivations levels of sales people to engage in cross selling. Financial incentives, product knowledge and recognition are studies to determine their influence on motivation to cross sell products from other divisions in a firm. A review of literature was conducted to study the influence of financial incentive, product knowledge and personal recognition on work motivation. These three constructs were then extended into a quantitative study of how they influence sales people’s motivation to engage in cross selling. The findings uncovered that salespeople consider product knowledge as a key inhibitor for them to engage in cross selling. The results also revealed a close contest with financial incentives and personal recognition also having positive influence on their motivation to engage in cross selling. Consistent with existing literature from social studies, it cannot be overemphasised that product knowledge empowers sales people and gives them the confidence to cross sell in an industrial sales environment.

Cross-selling is the practice of selling products or services that do not replace already purchased products or services to existing customers. In industries characterized by complex products, long lead times and intricate relations between customer and company, the determinants of a company's cross-selling performance are different than those present in other industries. This study explores salespersons' perceptions of antecedents of their cross-selling performance in a Swedish professional services company. The results are synthesized into a theoretical model that provides partially different perspectives compared to previous research. The most unexpected finding is that cross-divisional transpersonal efficacy - belief in the ability of service providers of cross-sold services to perform well - appeared to affect motivation to cross-sell notably. Transpersonal efficacy is an unexplored concept in the context of cross-selling and should thus be explored further. Managers should attempt to increase salespersons' cross-divisional transpersonal efficacy to increase salespersons' cross-selling performance. / Korsförsäljning, eller cross-selling, innebär att sälja produkter eller tjänster som inte ersätter redan köpta sådana till befintliga kunder. I branscher med komplexa produkter, långa ledtider och invecklade relationer mellan säljare och köpare skiljer sig faktorer som ökar cross-selling åt från andra branscher. Den här studien undersöker vad försäljare i ett yrkestjänsteföretag uppfattar påverkar deras korsförsäljningsprestation. Resultaten konsolideras i en teoretisk modell vars perspektiv delvis skiljer sig från tidigare studier i ämnet. Det mest oväntade resultatet är att försäljares motivation att korsförsälja påverkas starkt av deras uppfattning av hur väl de förmedlare som tillhandahåller de tjänster som korsförsäljs kan prestera. Detta fenomen är inte tidigare undersökt inom korsförsäljning, och bör därför undersökas vidare. Organisationer som vill öka sina försäljares korsförsäljningsprestation bör förbättra försäljares uppfattning av förmedlare av andra tjänsters prestationsförmåga.

The end of launching Financial Holding Company, FHC is to maximize the synergy of versatile financial services like banking, insurance, securities, and the like by means of cross selling internally to expand product line as well as offering integrated financial services to consumers externally to satisfy their one-stop shopping demands. One of the characteristics in the property is highly counting on people to deliver service, and agents play significant roles during service delivery. Therefore, it merits a better attention to probe into the relationships between the organizational commitment, the professional commitment, the organizational citizenship behavior, and the job involvement in cross selling of agents¡¦. The study is conducted by the questionnaire survey on three FHCs in which insurance business is inner circle in Taiwan. Throughout interviewing the staffs of the three by 500 questionnaires offered and 351 valid ones collected, the datum of the research is made by reliability analysis, descriptive analysis, Pearson correlation analysis, independent sample t-test, ANOVA, and multiple regression analysis to verify the identity degrees of the interviewees on the organizational commitment, the professional commitment, the organizational citizenship behavior, and the job involvement in cross selling. Following are the major findings: 1.Each one of the organizational commitment, the professional commitment, and the organizational citizenship behavior are statistically significant and positive correlated to the job involvement in cross selling. Among them, the organizational citizenship behavior is with the strongest influence on the job involvement in cross selling, then the organizational commitment second, and the professional commitment last. 2.Among the sub-dimensions, the organizational identity in the organizational commitment explains most the variations of the job involvement in cross selling and then the retention on the job. Also, the professional identity in the professional commitment explains most the one and then the retention on the occupation. And, the involvement in the organizational citizenship behavior explains the most the one and then the loyalty. It means that the organizational identity, the professional identity, the involvement and the loyalty of the agents are with significant effects on their involvement in cross selling. 3.The variations in the identity degrees of the organizational commitment and the professional commitment of the agents in the three FHCs are significantly different, however, the ones of the organizational citizenship behavior and the involvement in cross selling are no significant. From the findings of the research, the organizational commitment and the organizational citizenship behavior are proven the most impacts on the involvement in cross selling. Consequently, FHCs should pay more attentions especially to enhance the organizational identity of agents all the time except for advancing their knowledge and ability in cross selling when they want to raise the wills of agents on the job involvement in cross selling. For example, they can disclose the expectation and the requirement of the organization to agents to make them fully understand, follow, and moreover increase their confidence. Besides, building incentive performance assessment and rewarding system is more important than else in stimulating agents to have strong involvement in cross selling.

After the promulgation of Financial Holding Company Law at the end of year 2001, the law has liberated the limitation of operations across banking, brokerage, and insurance. In order to cope with the future market competition, these institutions formed in total of 14 financial holding companies (FHCs) through self raising, merging, or acquisition. This research is aiming at the 14 FHCs and their subsidiary banks, security brokerages, and insurance companies, through applying financial ratio analysis to measure the synergy of FHCs¡¦ merging and acquisition. The sources of synergy are divided into three dimensions : operations, markets, and finance. A total of eight years of financial data is collected, including two parts: four years of pre-founding of FHCs from 1998 to 2001 and four years after founding the FHCs from 2002 to 2005. In-depth interview is conducted to look for the differences of operation performance and effect of increasing shareholder wealth after the FHCs merging and acquisition. The conclusions of this study are presented as following¡G 1.Market Synergy Dimension: The revenue increased after founding the FHCs shows that the market synergy exists and fits to expectation. FHCs could operate across fields including banking, brokerage, and insurance to provide cross selling chance for finance products. 2.Operational Synergy Dimension: The operating costs and operating costs ratio are increased after founding the FHCs. Because the FHCs do not reach the economy of scale, the unit operation cost is high and the organization of FHCs becomes large and needs more communication, which makes the decision making process inefficient, the management efficiency still needs to be improved. 3.Financial Synergy Dimension: The profit after tax and ROE are decreased after founding the FHCs, which are mainly contributed from inefficient use of financial resources and human resources as a whole group. 4.Synergy was hard to be seen within short term, which needed three to four years to make it possible. After merging or acquisition, FHCs need some time to reduce the conflicts between its subsidiaries and to conduct more efficient resource application to form FHCs synergy. 5.Market Evaluation: The market value of whole FHCs increases which increases the shareholder¡¦s wealth. This research provides the solution for increasing operation costs, including the following three points: 1.Converging the operation process. 2.Increasing economy of scale. 3.Enforcing the management efficiency.

¡§The Financial Institution Merger Act¡¨ and ¡§Financial Holding Company Act¡¨ were legislated in 2000 and 2001 in Taiwan. Based on those Acts, there are 14 financial holding companies established till now . Except for Waterland Financial Holdings, the other 13 financial holding companies include banking industry business. It is obvious that the performance of bank does influence the performance of financial holding company. Bank joins in financial holding company hoping to provide ¡§one-stop shopping¡¨ diverse financial commodities to consumers through joint-marketing, sharing resources and equipment, and hoping to gain ¡§Cross Selling¡¨, ¡§Cost Savings¡¨ and ¡¨Capital Efficiency¡¨ performance¡]3C performance¡^. It expects to pursue broadly business scope and gain more profits through this business model. The research uses Mann-Whitney test of non-parametric statistics to examine the performance of the banking subsidiary of financial holding company in order to understand whether banks can gain expected efficiency after joining in financial holding company. The empirical results are listed as follow¡G First, the ¡§cross-selling¡¨ performance of the banks after joining in financial companies is better than those before joining in financial companies. While there are no significant differentials in ¡§cost-saving¡¨ and ¡§capital-efficiency¡¨ performance. Second, the ¡§profit ability¡¨ performance of the banks after joining in financial companies is better than those before joining in financial companies. Third, there are no significant differentials in growth ability between the banks after joining in financial companies and those before joining in financial companies. Fourth, the cross-selling performance and profit ability of the individual banks such as the Chinatrust Commercial Bank, Taishin International Bank, The International Commercial Bank of China, Cathay United Bank, Taipei Fubon Bank and E.Sun Bank after joining in financial companies is better than those before joining in financial companies. Fifth, the performance of ¡§cost-saving¡¨; ¡§profit ability¡¨; ¡§growth ability¡¨ and ¡§asset quality¡¨ of the banks affiliated to the financial holding companies is better than those not affiliated to the financial holding companies. Sixth, the overall performance of the banks affiliated to the financial holding companies is better than those not affiliated to the financial holding companies. But not all of the banks affiliated to the financial holding companies after joining in financial companies perform better than before. So the banks not affiliated to the financial holding companies can grasp their own niches and enforce core business. They can develop better than before even though their scale not big enough.