The 2010 Bank Sales Culture Mandate
by Rick Wemmers, BOL Guru Guru Bios
News is everywhere, shouting the many changes hitting the U.S. banking industry now and in the near future. Much of it isn't very comforting or optimistic, and for good reason at some banks. They've resisted change for several years, and the growing number of failed banks is scary with more to be announced soon, but for many banks, community banks especially, the news has some pretty positive points, if you look for them closely.
No, banking will not return to the 'boom' days of 2000-2005, but that doesn't mean we just throw in the towel. To me, it just means bankers have to adjust, like many other businesses, to a different way of capturing new customers and profits. Major change is inevitable. Now is the time to move forward.
Management needs to look closely at the 'new' competition for traditional bank business and fully understand their selling propositions. You can't beat the competition if you don't know much about them, so spend time and get up to speed on what their consumers are seeing and hearing, in your market, as options for your traditional, most profitable services.
It has been my experience over twenty-eight years in banking there is always a weak spot in a new competitor. The key is to find it quickly and exploit it to your advantage.
For those banks who want to take advantage of current times the mandates I see are:
Every employee has a new opportunity and frankly, a requirement, to work harder and differently on every customer's experience, each time a customer comes in contact with the bank. This goes way beyond the traditional 'customer service', which frankly isn't much of a differentiator in the prospect's mind. What bank in your town advertises "Crappy service but low loan rates"? Doesn't every bank say it has the best customer service?
Staffs need to be trained on dealing with emotions and feelings, which doesn't come naturally. It is not a big training expense, just very unique and needs to be done by an outsider.
Every bank president has to accept that doing business as usual will not get the desired bottom-line results. There are too many solid options for consumers these days. Face up to making changes and move forward, while it is still voluntary, not mandatory.
Bank employees will not start selling more aggressively on their own. Nobody likes to sell. That has never been the case, and it isn't going to change without special efforts. Look beyond the teller line. Greater, more profitable results are realized when officers and managers get out and sell.
Bank employees who are trained how to sell in today's environment will get more positive results for the bottom line, and if they are coached, they will triple their productivity in as little as ninety days. How does an 85% increase in employee productivity sound to you?
Current strong banks must take their weak competitor's best, highest quality customers now versus later in 2010. Winning in the future goes with a strong bottom line and a well-directed, pro-active sales effort.
Now is also the time to train employees on higher job productivity techniques. Banks of all sizes need to weed out the poor performers. These can easily be replaced with much more effective people, given the current state of the economy. When our economy starts heating up, which it is already starting to do, the profit margins will be thinner and ergo fewer employees need to do the work, so stop wasting time and money. Objectively assess your staff and start looking for stronger team members.
Banking in the near future must be noticeably different. While 'change' is always resisted, good successful change can be accomplished without major pain. There is a simple process and it works, so look at your current sales culture and prioritize the areas most impacting the bank's future. Do it today.
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