FNS40815 Certificate IV in Finance and Mortgage Broking Assessment 3

This document provides detailed solutions for the FNS40815 Certificate IV in Finance and Mortgage Broking assessment, specifically addressing the FNSSAM403 module on prospecting for new clients. The assignment covers a range of topics including the differences between up-selling and cross-selling in financial services, the advantages of active listening, and the benefits of relationship marketing for banks. It also explores ethical issues in selling financial products, strategies to overcome client objections related to life insurance, tools and strategies for successful customer relationship marketing, the importance of CRM technology for banks, and the rationale behind the 'Know Your Customer' strategy. The solutions offer practical insights and examples to help students understand key concepts and excel in their finance studies.

FNS40815 Certificate IV in Finance and Mortgage
Broking
FNSSAM403 Prospect for new clients
Assessment 3
FNS40815_ FNSSAM403 Assessment 3 V1.0 REAA Released September 2024
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Activity 1
Explain the difference between up-selling and cross-selling, using financial service
products as examples.
Activity 1 Answer
Cross-selling: It identifies the product which additionally satisfies, the
complementary needs which are not met by the original items. Cross-selling is
present in every type of financial product or services. Credit cards are mostly
cross sold to the customers having their saving account. While the life
insurance is mostly suggested to the customers who are buying car coverage.
Loan to credit card holders is a best example of this.
Up-selling: It employs comparison charts pertaining to market the high-end
products to its customers. Under this visitor shows the other versions which
may fulfill the requirements can rise AOV. For example, asking customers for
the credit card along with the overdraft facility of $5000.
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Activity 2
Explain some of the advantages of active listening.
Activity 2 Answer
1. Better understanding: It makes the lister to have increased understanding
of the topic which helps in enhancing the concentration of audience. It
helps in getting better insight to the topic.
2. Clarification: It involves the option of explanation to the problems that
might come across during the time of speech delivery. Proper explanation
of the agenda makes it easier for the learner to adopt the concept.
3. Reduces fear: Active communication results into boosting confidence.
Active listening breaks the boredom which is mainly due to lack of
response from the audience. But speaking in front of large audience
reduces fear.
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Activity 3
What benefits does relationship marketing offer to banks?
Activity 3 Answer
The relationship marketing provides bank the way to develop mutually
beneficial and the valuable long-term relationships. These relationships help in
decreasing the operational cost of the bank along with attracting new
customers.
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Activity 4
Identify some ethical issues which might arise for someone selling financial
service products and services.
Activity 4 Answer
1. The self-interest sometimes converts into greediness at the expense of
others and the focus shifts from long term to short term with more
emphasis on the profit making.
2. Professional duty conflicting with the company’s demand like a faulty
reward system which result into encouraging unethical behaviour.
3. The responsibility of individual might wither under the demand of the
clients and sometimes unethical behaviour is comes from the clients
side.
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Activity 5
After hearing the story of the overall value of permanent life insurance, clients
will most likely have specific questions, which boil down to three main objections:
affordability, education and procrastination. What strategies might you use to
overcome these objections?
Activity 5 Answer
Strategy for procrastination: People makes excuses for purchasing life term
but it is important that one can have it at few cents a day if one is reasonably
young and healthy. As such excuses is of no help to dependents in cases of
sudden death. Purchase life insurance as soon as possible otherwise, it will
become expensive with time.
Strategy for Education policy: Benefits is that such policy provides bonus
payments which si added to the child’s education fund which varies with the
plan.
Strategy for affordability: There are various options and plans are available
which are based on the different needs and affordability of the person which
helps in reducing the burden of charges.
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Activity 6
Identify some tools and strategies to become a successful customer relationship
marketing manager.
Activity 6 Answer
1. Respect the Client’s Time: Time is very precious and for building healthy
relationship, it is important to respect the time of the client.
2. Set Mutual Goals: When goals of clients differ from the manager then it is
essential to set up mutual goals from the starting.
3. Build Credibility Over Time: Manager needs to be patient, consistent in
dealing with the clients which helps n building credibility.
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Activity 7
Why is it important for banks to adopt CRM technology?
Activity 7 Answer
 Boosted Sales
 Increased Lead Conversion
 Personalized Customer Journeys
 Increased Productivity
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Activity 8
Why have many banks adopted the strategy “Know your customer”?
Activity 8 Answer
 Maximizes revenue and profits
 Improves customer relationship
 Maximizes the value of customers
 Lowers the cost
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