US banks continue to set profit records. New business just seems to keep on coming to many banks, without much selling effort. That is good BUT it can mask some serious deterioration in market share of deposits and mindset. There is still growth by "non-bank" institutions into traditional banking services.
Bank ATM usage is still dropping, probably due to increased use of debit cards and fear of crime. Some banks are testing new uses for ATMs in an attempt to salvage their equipment investments. New operating systems permit new customer choices but no one seems to have found yet just what will draw users back to the machines. ATMs never did reach banker expectations and like other trends, many banks rushed to stay in the "herd" only to find that the elusive "pot at the end of the rainbow" is still missing. When will bankers learn the value of doing their homework before leaping into a capital expenditure????
Small and medium sized businesses who bank with big banks are still unhappy. If you want to increase your market share in this area, find out just what is making them unhappy, in your market. Then develop a sales plan to get the word out you have solutions. Don't assume that just calling on them will work. It won't. They aren't THAT unhappy. There needs to be a strong business reason to overcome the reluctance to change. Maybe you can hold a business owners seminar and have an outside speaker give first hand counsel on improving retail sales.
US housing sales continue to remain strong. If you aren't getting the business you want from this segment, brainstorm some new ideas. Push strategic alliances with real estate firms, builders and developers. Don't wait for home buyers to come to you. Be proactive!
Here's a new service to set your bank apart from others - a home equity secured credit card. Your customers will like the convenience of having plastic credit card to make withdrawals from their account and enjoy the potential of tax deductions for interest incurred. There is a vendor who will help install this in exchange for a royalty on results.
While most banks have cut their marketing expenses significantly, those who continue still aren't measuring return on these expenditures. It is so simple to put a measuring stick or two into these efforts. Call me for ideas.
Bank employees continue to be underutilized to help bank growth. Few banks have recognized what other companies have learned. Employees will sell harder and be more successful if they set their sales goals themselves. All it takes is a little team building advice, management support and activity direction. If your bank needs help to get started, call me for ideas.
Customers continue to leave banks or least take part of their business relationship to other suppliers. Does your bank have a formal customer retention plan of action? If not, you should. It is 5 times more costly to secure a new customer than it is to keep a current one. This type of program isn't complicated or expensive. It just takes a little planning, creative thinking and maintenance. Look in the current issue of Bank Marketing for my ideas.
Some banks are improving on-line banking participation by offering incentives that are irresistible. What have you tried to lure customers who are registered but not using?
Check the communications link between your marketing department and your officer call program. Most likely these two don't have the same perspective of what the bank is selling and to whom.
Some interesting bank facts:
$ Bank robberies are up 9.4%.
$ FDIC "problem banks" grew from 94 to 102.
$ Savings institutions have reached record profit levels.
$ 70% of bank marketing fails to get customer/prospect attention.
Quote: "If time is money….then…waste not and want not"
Humor: You're getting old if: "All the cars behind you turn on their headlights"
Rick Wemmers is available for sales coaching and strategic retreat facilitation.
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