Research On Commercial Bank Cross-selling Strategy Of Retail Customer

With the development of financial market, the competition between banks become more intensive and the cost of obtain customer is gradually increasing while the traditional marketing efficiency decreasing continually. So more attention should be paid to the development of existing customers of bank. As an effective marketing mode of promoting current customers value, more and more attention has been paid to the cross-selling. Both the foundation of data warehouse and the rapid development of the large-scale data processing technique pay the possibility of the implement of cross-selling. The particularity of bank also decide that the requirement of products will present sequence relation when the customers choice the products of bank.This study analyzed the meaning of cross-selling in the first place, and indicate that cross-selling is an marketing strategy which gave an total solution to meet customers'needs on the basis of understanding of the diverse needs of customers, at the same time it analyzed the existing methods of identifying cross-selling opportunities; Second, this paper established the utility model of cross-selling which reflect retail operations of China commercial bank, then make a detailed description of the principles and algorithm of the order model, the requirements on data format, and clarify the process of data. Then test model with bank customer data. During this process, we first made a preliminary analysis for the purchase of individual customer; Then analyzed product's buying order sequence, the result shows that we could predict cross-selling according to product's buying order sequence; And finally we provide several theoretical basis for the implement of cross-marketing strategy.Finally, this study can obtain the product purchase sequence in the form of different ages, such as "Demand deposits, Financial management"(?)Time deposits "and Financial management(?)Time deposits", according to the customer's transaction history. And it can generate the prediction table which contains the customers'choice of next purchase.Contribution of this research results is as follows four point. Firstly, this paper gives a comprehensive exposition of the deep meaning of cross-selling and the application significance of cross-selling in the banking retail business. Secondly, this paper builds the cross-selling retail business model for the Commercial Banks. Thirdly, using this prediction model not only explore cross-selling opportunities for banks to identify the methods, but Banks can also enhance the implementation of "one to one" marketing targeted, lower marketing costs, improve marketing efficiency, and improve the data base application. Finally, this paper provides new meanings and methods to improve customer satisfaction and new product development.