LAS VEGAS - The hot-button issue of cross-sells was the order of the day during Tuesday's "Cross-Selling: Profits and Pitfalls" seminar at Internext in light of MasterCard's decision to enforce its regulatory policies on the matter.
Moderator Sherri L. Shaulis of AVN wasted no time in getting the panel's thoughts on the credit-card company's crackdown. Mitch Farber, president of NetBilling, believes that this is an opportunity for the industry to get compliant, while Becky Deforest of ARS applauded MasterCard's decision and even hopes Visa will follow suit, at that it will be a deterrent to people operating under unethical practices. Cross-sell specialist Ron "12Clicks" and CECash Albert agree that it's time to take a look at who you're doing business with, because the industry is under the microscope.
So is there a right way to do cross sells? The entire panel agreed that upfront, full-disclosure to the customer is the way to go about it. Data trading by a few bad apples makes the industry at large look bad. Transparency is key to customer retention, the foursome concurred.
The panel did not believe it's all doom and gloom, either. Both Holiday and Deforest posited that this may in fact be a blessing in disguise, because the FTC will get rid of the people making everyone else look bad.
As the industry lacks a governing body, an organization like the FTC can act as a watchdog group of sorts. Therefore, the only people who are doomed are the ones who were participating in unethical practices in the first place.
In light of the changing landscape, some of the alternatives (which the crowd was eager to hear about), suggested the panel, are things such as white-labeling, selling passwords, and upselling to your own merchant account.
All agreed that what comes next will depend on how individuals and companies adapt. Those with solid, ethical business practices will be the last ones standing and best prepared to weather the storm. Getting rid of the "crooks" and rooting out fraud is a welcome intervention. If the FTC hits the right people, the industry will profit.
Farber summed it up best: "It's easier to stay clean than clean up a mess later. Don't get greedy."
