Cross-selling as a strategic differentiator for revenue growth within Nedbank retail (case study of KZN)
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Date
2011
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Abstract
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 (e.g.. 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
remains 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 cross selling and up-selling to be
effective 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 cross-selling and up-selling from a practical point of view in
Nedbank It assesses the importance of the concepts of customer retention and cross-selling
and up-selling through several interviews conducted within Nedbank. Finally, this
research highlights, from an 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 cross selling.
Description
Thesis (MBA)-University of KwaZulu-Natal, Westville, 2011.
Keywords
Selling--Banks and banking--KwaZulu-Natal., Revenue management--KwaZulu-Natal., Bank management--KwaZulu-Natal., Bank marketing--KwaZulu-Natal., Cross-selling financial services--KwaZulu-Natal., Theses--Business administration.