Wells Fargo 2015 Annual Report Download - page 48

Earnings Performance (continued)
Cross-sell We aspire to create deep and enduring relationships
with our customers by providing them with an exceptional
experience and by discovering their needs and delivering the
most relevant products, services, advice, and guidance. An
outcome of offering customers the products and services they
need, want and value is that we earn more opportunities to serve
them, or what we call cross-sell. Cross-sell is the result of serving
our customers well, understanding their financial needs and
goals over their lifetimes, and ensuring we innovate our
products, services and channels so that we earn more of their
business and help them succeed financially. Our approach to
cross-sell is needs-based as some customers will benefit from
more products, and some may need fewer. We believe there is
continued opportunity to meet our customers' financial needs as
we build lifelong relationships with them. One way we track the
degree to which we are satisfying our customers' financial needs
is through our cross-sell metrics, which are based on whether the
customer is a retail banking household or has a wholesale
banking relationship. A retail banking household is a household
that uses at least one of the following retail products – a demand
deposit account, savings account, savings certificate, individual
retirement account (IRA) certificate of deposit, IRA savings
account, personal line of credit, personal loan, home equity line
of credit or home equity loan. A household is determined based
on aggregating all accounts with the same address. For our
wholesale banking relationships, we aggregate all related entities
under common ownership or control.
We report cross-sell metrics for Community Banking and
WIM based on the average number of retail products used per
retail banking household. For Community Banking the cross-sell
metric represents the relationship of all retail products used by
customers in retail banking households. For WIM the cross-sell
metric represents the relationship of all retail products used by
customers in retail banking households who are also WIM
customers.
Products included in our retail banking household cross-sell
metrics must be retail products and have the potential for
revenue generation and long-term viability. Products and
services that generally do not meet these criteria – such as ATM
cards, online banking and direct deposit – are not included. In
addition, multiple holdings by a WIM customer within an
investment category, such as common stock, mutual funds or
bonds, are counted as a single product. We may periodically
update the products included in our cross-sell metrics to
account for changes in our product offerings.
For Wholesale Banking, the cross-sell metric represents the
average number of Wholesale Banking (non-retail) products
used per Wholesale Banking customer relationship. What we
include as products in the cross-sell metric comes from a defined
set of revenue generating products within the following product
families: credit, treasury management, deposits, risk
management, foreign exchange, capital markets and advisory,
investments, insurance, trade financing, and trust and servicing.
The number of customer relationships is based on tax
identification numbers adjusted to combine those entities under
common ownership or another structure indicative of a single
relationship and includes only relationships that produced
revenue for the period of measurement.
Wells Fargo & Company
46