Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Value through combined offerings of bank and insurance

Value through combined offerings of bank and insurance Purpose – The purpose of this paper is to investigate how financial service providers cross‐sell combined bank and insurance service offerings in a business‐to‐business context with the aim of increasing understanding on the creation of corporate customer value through cross‐selling. Design/methodology/approach – A qualitative study of eight providers, augmented with interviews among eight of their small and medium‐sized enterprise (SME) customers, form the empirical basis of the study. Findings – Financial service providers anticipate a shift from separate sales events towards one‐stop shopping and from unilateral provision of non‐related products towards consideration of hybrid products in the SME segment. SME customers, who tend to acquire their banking and insurance services as non‐related products from separate providers, do not fully support these trends. The results are partly explained by the absence of customer loyalty programs and non‐existent provision of hybrid products in the business‐to‐business context. Research limitations/implications – The research is focused on the financial industry within one country and bound to SME customers, limiting the generalizability of the findings. Practical implications – The results imply that financial service providers should develop their one‐stop shopping concept in the SME segment by creating a customer loyalty program that would reward customer companies according to the use of multiple products in their total portfolio. Additionally, the possibilities of introducing hybrid products solely for business customer use should be further investigated. Originality/value – This study is the first to show how business customers perceive the value of cross‐buying bank and insurance services, presenting a reminder to managers about the importance of recognizing their SME customers' value expectations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Bank Marketing Emerald Publishing

Value through combined offerings of bank and insurance

Download PDF
20 pages

Loading next page...
 
/lp/emerald-publishing/value-through-combined-offerings-of-bank-and-insurance-0oJ6Os9THl
Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0265-2323
DOI
10.1108/02652321111177812
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to investigate how financial service providers cross‐sell combined bank and insurance service offerings in a business‐to‐business context with the aim of increasing understanding on the creation of corporate customer value through cross‐selling. Design/methodology/approach – A qualitative study of eight providers, augmented with interviews among eight of their small and medium‐sized enterprise (SME) customers, form the empirical basis of the study. Findings – Financial service providers anticipate a shift from separate sales events towards one‐stop shopping and from unilateral provision of non‐related products towards consideration of hybrid products in the SME segment. SME customers, who tend to acquire their banking and insurance services as non‐related products from separate providers, do not fully support these trends. The results are partly explained by the absence of customer loyalty programs and non‐existent provision of hybrid products in the business‐to‐business context. Research limitations/implications – The research is focused on the financial industry within one country and bound to SME customers, limiting the generalizability of the findings. Practical implications – The results imply that financial service providers should develop their one‐stop shopping concept in the SME segment by creating a customer loyalty program that would reward customer companies according to the use of multiple products in their total portfolio. Additionally, the possibilities of introducing hybrid products solely for business customer use should be further investigated. Originality/value – This study is the first to show how business customers perceive the value of cross‐buying bank and insurance services, presenting a reminder to managers about the importance of recognizing their SME customers' value expectations.

Journal

International Journal of Bank Marketing – Emerald Publishing

Published: Oct 11, 2011

Keywords: Cross‐selling; Financial services; One‐stop shopping; Hybrid products; Customer value; Small to medium‐sized enterprises

References

  • Business marketing: understand what customers value
    Anderson, J.C.; Narus, J.A.
  • Qualitative case study methodology: study design and implementation for novice researchers
    Baxter, P.; Jack, S.
  • Bancassurance: the new challenges
    Benoist, G.
  • The profitability of bancassurance for European banks
    Bergendahl, G.
  • Cross‐selling: capitalizing on the opportunities
    Butera, A.
  • Banks must manage small business deposits to foster long‐term growth
    Connolly, B.J.
  • Exploiting the installed base using cross‐merchandising and category destination programs
    Drèze, X.; Hoch, S.
  • E‐brokerage's Integration Challenge
    Engen, J.
  • Small and medium‐sized enterprises (SMEs): SME definition
    European Commission
  • Customer retention in the insurance industry: using survival analysis to predict cross‐selling opportunities
    Harrison, T.; Ansell, J.
  • European banks find cross‐selling difficult
    Howard, J.
  • Cross‐selling in the financial sector: customer profitability is key
    Jarrar, Y.F.; Neely, A.
  • Effects of corporate reputations, relationships and competing suppliers' marketing programmes on customers' cross‐buying intentions
    Jeng, S‐P.
  • Applying latent trait analysis in the evaluation of prospects for cross‐selling of financial services
    Kamakura, W.A.; Ramaswami, S.N.; Srivastava, R.K.
  • Cross‐selling through database marketing: a mixed data factor analyzed for data augmentation and prediction
    Kamakura, W.A.; Wedel, M.; de Rosa, F.; Mazzon, J.A.
  • Next‐product‐to‐buy models for cross‐selling applications
    Knott, A.; Hayes, A.; Neslin, S.A.
  • Content‐analysis research: an examination of applications with directives for improving research reliability and objectivity
    Kolbe, R.H.; Burnett, M.S.
  • Finding the most preferred alliance structure between banks and insurance companies
    Korhonen, P.; Voutilainen, R.
  • Bank selection and share of wallet among SMEs: apparent differences between Hong Kong and Australia
    Lam, R.; Burton, S.
  • SME banking loyalty (and disloyalty): a qualitative study in Hong Kong
    Lam, R.; Burton, S.
  • Customer tradeoffs between key determinants of SME banking loyalty
    Lam, R.; Burton, S; Lo, P‐H.
  • How consumers choose a financial institution: decision‐making criteria and heuristics
    Lee, J.; Marlowe, J.
  • Cross‐selling sequentially ordered products: an application to consumer banking services
    Li, S.; Sun, B.; Wilcox, R.T.
  • Customer retention and cross‐buying in the banking industry: an integration of service attributes, satisfaction and trust
    Liu, T‐C.; Wu, L‐W.
  • Opportunities for banks to cross‐sell insurance products in Greece
    Lymberopoulos, K.; Chaniotakis, I.E.; Soureli, M.
  • Qualitative Research Methods Series: The Long Interview
    McCracken, G.D.
  • The shopping basket: a model for multicategory purchase incidence decisions
    Manchanda, P.; Ansari, A.; Gupta, S.
  • A model of retail formats based on customers' economizing on shopping time
    Messinger, P.; Narasimhan, C.
  • Qualitative Data Analysis
    Miles, M.B.; Huberman, A.M.
  • Drivers of customers' cross‐buying intentions
    Ngobo, P.V.
  • Consumer responses to dissatisfaction with financial service providers: and exploration of why some stay while others switch
    Panther, T.; Farquhar, J.D.
  • Qualitative Research & Evaluation Methods
    Patton, M.Q.
  • The value concept and relationship marketing
    Ravald, A.; Grönroos, C.
  • Zero defections: quality comes to services
    Reicheld, E.F.; Sasser, W.E.
  • Store‐, market‐, and consumer characteristics: the drivers of store performance
    Reinartz, W.; Kumar, V.
  • On the profitability of long‐life customers in a noncontractual setting
    Reinartz, W.; Kumar, V.
  • Investigating cross‐buying and customer loyalty
    Reinartz, W.; Thomas, J.S.; Bascoul, G.
  • Factors that affect consumers' cross‐buying intention: a model for financial services
    Soureli, M.; Lewis, B.R.; Karantinou, K.M.
  • Finnish enterprises
    Statistics Finland
  • How small business firms select a bank: comparisons between the United States and Australia
    Trayler, R.; Nielson, J.; Jones, R.
  • Measuring customer‐perceived value in business markets: a prerequisite for marketing strategy development and implementation
    Ulaga, W.; Chacour, S.
  • Value‐based differentiation in business relationships: gaining and sustaining key supplier status
    Ulaga, W.; Eggert, A.
  • Convergence in the financial services industry
    Van der Berghe, L.; Verweire, K.
  • The effect of acquisition channels on customer loyalty and cross‐buying
    Verhoef, P.C.; Donkers, B.
  • The impact of satisfaction and payment equity on cross‐buying: a dynamic model for a multi‐service provider
    Verhoef, P.C.; Franses, P.H.; Hoekstra, J.C.
  • The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: does age of relationship matter?
    Verhoef, P.C.; Franses, P.H.; Hoekstra, J.C.
  • In search of the best alliance structure between banks and insurance companies
    Voutilainen, R.
  • A comparative study of cross‐selling practices in public and private sector banks in India
    Vyas, R.S.; Math, N.R.
  • Bank‐company interactions and relationships: some empirical evidence
    Zineldin, M.