For a service provider, cross-selling makes sense in theory, but in practice, it runs into problems of consistency of quality and the “silo mentality”, writes Kim Tasso
The property market is tight and marketing budgets are even tighter. We all know it makes sense to develop more business from existing clients. So why doesn’t it happen?
Just because a client is purchasing advice from one department does not imply that they are willing or able to buy services from another. Cross-selling makes great sense to a firm, but cross-buying is not always in the client’s interest or control. For example, you may have a really excellent agency team but your management group may be a not-so-secret industry joke.
The know-how investment of your valuations experts may not be reflected among your building surveyors, and you may find that the panel that really rates your architecture services has blacklisted your project management team. The maxim of placing many orders with one trusted adviser may have been replaced by one of spreading our work among many suppliers.
Then again, it may be that the individual with whom you have a relationship has the need for only one type of service, and may not even know who else in the organisation may be interested in or able to purchase other property advice services.
Client focus
The one-stop shop concept sounds great, but if it means that the client gets less than optimum advice or service from one or more of the “stops”, then it is not going to work. There is a need to be more client-focused.
By using structured account management methods, you can get so close to your existing clients that everyone starts to think of you as part of their team. As you become more of a “client adviser”, you will learn much more about their needs and preferences. You will be able to identify areas where the client needs help.
In your quest to resolve all the clients’ issues – even those falling outside your own area of expertise – you will have found a suitable time to introduce your colleagues from another department.
The second reason cross-selling is not as easy as it might seem is because you are insufficiently informed of other departments – it will be difficult to identify appropriate opportunities with your clients. You will need to update your knowledge of what your colleagues are doing in order to be an effective “opportunity identifier”.
Trust in colleagues
Knowing what the other departments are able to do for your clients does not mean you will be happy to introduce them, because you must first be able to trust colleagues fully. Gaining all this knowledge and trust in your colleagues in other departments can happen naturally in smaller firms, but will require investment in structured internal communications programmes in larger firms. Agents and other professionals do not usually enjoy spending large amounts of time in each other’s company.
Even if you do have sufficient knowledge of your colleagues in other departments, there is the motivation issue. Why should one person invest time and energy to help another department increase its fee income? When the reward system focuses on the fees generated by a single department, there is little incentive to cross-sell.
Cross-selling might seem like a fine idea, and the theory indicates that it should happen in order to maximise a client base’s opportunities. But that theory just did not take into account human nature and the “silo mentality”.
