By combining and analyzing a number of information from the cross-selling scandal and other similar cases of other companies, we suggest four methods which help Well Fargo to overcome the scandal and regain its loss and reputation. Although cross-selling method is resulting in significant profit loss and reputational damages, it has been successfully used to increase sale revenue for other companies such as Amazon, Bank of America, Best Buy, and Gap. Therefore, instead of prohibiting this practice, the management should develop an effective cross-selling campaign in order to generate profit for both Well Fargo and its customers. Below are four solutions along with specific explanations which the management can consider to resolve the company’s …show more content…
current problems. Smart cross-selling campaign By researching marketing strategies of other companies, we conclude that cross-selling tactics benefit both sellers and customers.
In fact, cross-selling method can significantly increase sale revenue for sellers since it allows them to sale more products and services existing customers and create incentives of repurchasing. Amazon, one of the largest online electronic commerce company, reported that 35% its annual sale revenue came from cross-selling campaign. Cross-selling not only helps sellers to tie their customers to their products, but also saves time for customers as they can easily and quickly buy additional products at the same place. These benefits prove that cross-selling is a potential marketing strategy that Well Fargo should take advantage of. There are some tips that the company can use in order to develop an effective cross-selling campaign:
• Identifying the maximum number of products and services should sell to each customer.
• Selling only supplementary products and services that have additional value in order to maximize profit for both sides.
• Developing appropriate promotions so that customers has natural incentives to purchases more products. For instance, instead of urging advertising calls, bank tellers may recommend new services and products when customers come to the
bank. • Combining attractive offers such as student discounts, discounts for the second product, low mortgage rates, and lower fee of investment. Hiring Independent consultants Hiring an independent consulting company is an important and necessary action that shows the public Well Fargo is making a great effort to resolve the problems. These well-training consultants and the management will work together to pull the company out of the scandal and regain customer beliefs. The consultants’ responsibilities include: • Reviewing all documents and identify unauthorized customers’ accounts. • Giving the management professional advices in other to determine deficiencies in internal controls and operational activities. • Preventing the company from violations of fraud, law, and customers’ rights. Effective training program Training effective new employees is always easier than terminating and firing. In order to avoid the similar problems in the future, the company should improve training program for new employees. Below are some suggestions for the improvement: • Concentrating on ethnic training and specific restrictions besides skill training. • Emphasizing the importance of putting customers’ benefits first. • Mentioning the cross-selling scandal as an important experience that need to avoid in the future. • Explaining and instructing the right methods to apply cross sales.
Employees were using the cross-selling which is a concept of attempting to sell multiple products to consumers. This concept led to fraudulent actions, in fact employees were encouraged to order credit cards for pre-approved customers without their consent, and to use their own contact information when filling out requests to prevent customers from discovering the fraud. " The Wells Fargo scandal was far different. Instead of a select few doing bad things, the unethical behavior was widespread at the bank, with thousands of employees engaged in secretly creating new bank and credit-card accounts for customers without their knowledge, resulting in overdraft and other fees." (Kouchaki, 2016). According to the Los Angeles City Attorney, employees were opening and funding accounts without customers' permission or knowledge in order to "satisfy sales goals and earn financial rewards under the bank's incentive-compensation program." This means that the board members of the bank were aware of that it wasn't by the employees' own wills. In fact, they were pressured by aggressive goals and performance which led them to immoral behaviors. Facing this problem, Wells Fargo bank had to take some measures to avoid bankruptcy, losing customers, or loosing brand
This is the where there is use of some attraction to the consumers and in this case the use of an ...
The ultimate goal is to increase product sales. They have to depend on the customer to reach that goal. Making the customer feel comfortable and encouraging them to buy more goods is a process toward that goal.
The company promotes an aggressive strategy that they believe is the basis to accomplish their vision. Also incorporating a successful business model and a plan of execution to tie together the general strategy for Wells Fargo. The company values their customers above all else, wanting to gain their trust and deepen relationships with each and every one of them. Along with their extensive community involvement, Wells Fargo has other strengths that have helped them become so successful. The explosion of the bank began in San Francisco and soon expanded nationwide. Eventually, Wells Fargo developed into an international company. They provide multiple different networks that help attract potential customers to their company by having a service that can apply to everyone. Another strength that the company has executed would be the art of cross-selling. When it is finalized legally, it can be a great attribute to the company and the customer by letting them access the new services Wells Fargo provides. However, if there are strengths the weaknesses will follow in a major corporation. Wells Fargo has an international basis, it is very narrow in
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
In this paper I will identify and analyze the Wells Fargo scandal as it pertains to the breakdown of leadership and ethics. I will first identify and analyze the event and discuss the challenges and conflicts the scandal presented. Then I will evaluate the issue by explaining why the issue has interest and concern to stakeholders followed by discussing the challenges presented to individuals and/or organizations around this case. Lastly, I will recommend action steps that should be taken to those involved as well as discuss what I have learned from exploring this topic.
Fierce warriors that pillaged and destroyed hundreds and thousands of villages. Brave men and women that crossed seas into the unknown. These superhero-like beings were Vikings. Many people thought of the Vikings to be savages that destroyed anything they touched, had no care for anything, and were beasts of humans. However, the Vikings had goals. They wanted prosperous farmland, a successful life, travel the world, and to know that someone of a higher power was looking out for them. Vikings believed in a polytheism or the worship of more than one god. These gods and goddesses were all “in charge” of a certain job that varies like knowledge, war, or fertility. The stories the Vikings told spoke from how the world was created to the many different gods and goddesses and how they worship them, so that they can be protected or saved.
Legal responsibilities at Wells Fargo include a wide variety of issues. They can be from protecting customer’s rights to securing company policy. Customers trust Wells Fargo with private and privileged information. Therefore, the bank must main...
Threats to the organization involve the various competitors in the financial services industry as well as key partners in the supply chain. When discussing competitors, an obvious threat will be loss of market share to other institutions. With the negative media, many customers have switched their banking relationships to another financial services provider. Because the products in the financial services industry are generally the same from firm to firm, it is imperative that the service provided sets the organization apart. The threat of a negative image of Wells Fargo & Co. could tarnish the way the public views its service provided. Because of this, it is necessary to switch from a results driven model to that of simply serving the
Customers will be attracted, to buy the different product offered in the shop, by the attractive price of those products. Customers will spend less time making an order, getting the ordered product and making payment.
During the past year Wells Fargo, a well-recognized bank of the United States, has been trying to clean its name and the mess it got itself into, when it was brought to the public that the bank was involved in generating fraudulent checking and savings accounts for its clients without their knowledge or their authorization. “The way it worked was that employees moved funds from customers' existing accounts into newly-created ones without their knowledge or consent”
The Dark Ages were a period of great upheaval, battles, plague and very little cultural growth. This period began with the fall of Rome around 410 and lasted about 650 years. Rome was often referred to as the “mother land” and her fall created a loss of trade and commerce sending Western Europe into chaos. Lords from all over Europe were fighting to take control. These struggles from within Europe made it easy for outside forces to invade and take wealth and resources (Corbishly 14). The term “barbarian” was used by the Romans to refer to any “non-Roman”. Among some of these barbaric invaders were the Mongols, the Visigoths and the Vikings. All were fearless warriors and brutal plunderers. Some would argue that the Mongols were most barbaric as they were known to fight day and night to allow no rest for their enemy (Mongols). However, the strength and brutality of the Viking warriors allowed their era to last over 300 years, expanding throughout most of the known world. The Vikings were the most brutal due to their unjust plundering of monasteries and other religious provinces, their Berserker warrior subgroup and their pagan practices.
Two recommendations for promoting direct-sales through consumer and the business; One is to offer incentives to its customers and second is to motivate the business to promoting its products by advertisements, establishing sales competition for employees, participating in conventions, and by endorsing franchise of its products to retail stores.
They are many different alternative solutions that businesses can do in order to try and jump starts their declining sales. One of the way can start with is to see what do their customers really want. This can done easily by having their
Another way to attract customers would be to offer special discounts. This could be done with e-gift coupons. You can utilize an entirely new market with e-gifts. E-gifts wo...