Posted by Ned Miller on Wed, Jul 28, 2010 @ 04:50 PM
Some of our clients believe that Branch Managers should take the lead in managing the top small business relationships in their branches. Others think that the Branch Managers should also allocate a percentage of their time to prospecting in the microbusiness and professional segments. That strategy can work, but only after addressing a number of issues:
* Many Branch Managers have a limited understanding of how businesses operate. In their meetings they tend to shift the conversation too quickly toward bank products and services.
* Most of their interactions with business owners have been reactive; they are not as comfortable proactively calling on companies where there may be no immediate need for their products or services.
* Branch Managers have limited knowledge about business products, outside of DDAs, cash management and merchant services.
* They don’t get enough “practice” calling on businesses. (In our opinion, unless a Branch Manager is making at least 4 or 5 scheduled business calls a week, he probably isn’t going to get either comfortable or effective.)
* Their bosses often have the same background and aren’t particularly adept at coaching outside business calls. They often defer to business partners to coach their teams in that area.
* Branch Managers often get mixed and conflicting messages about priorities. (Is my job to sell products or build relationships with business customers? Should I spend more time in the branch or make more calls?)
For insights into how banks are addressing these and other issues, visit our website to download a recent presentation on “Guiding Branches to Small Business Relationships” at http://www.mzbierlyconsulting.com/landing-page-temp-0/
Posted by Ned Miller on Wed, Jul 21, 2010 @ 01:40 PM
Almost every banker I know is behind on his loan goals. Here are four things you can do to improve your chances of booking more assets in 2010:
Differentiate between Sales Strategy and Credit Strategy.
- Credit is a solution to a need. How the solution is positioned, discussed, and matched to both short-term and long-term needs is selling.
- A high-performing salesperson does two things:(1) Ensures that what a decision maker “says” is his need “really is” his need and (2) Shows how the approved loan really is a match for the determined need.
- Determine your sales strategy before you begin the term sheet, not after it languishes: To whom am I selling? What are their jobs? What are their needs/interests/values? How do I change my sales approach to meet their value systems?
Discuss regularly with your Sales Manager the types of business that match your bank's credit quality and profitability objectives.
- Study your market. Focus on the businesses that best match your business objectives. Be clear about your bank’s credit appetite for certain types of business. If you’re unsure how a credit opportunity will be received, have a pre-flight discussion with your credit partners.
- Before you push out a term sheet talk through your pricing strategy with your manager. How aggressive can you be?
Manage Your Market, not Just Relationships.
- You are a market manager, managing growth in all sources of business from customers, prospects and COIs.
- Your objective is to grow wallet share and market share.
- Face-to-face is the best way to sell. Get out from behind your desk.
- Behind great bank Relationship Managers are great administrative support people. Get the support you need.
Think Like a Business Owner.
- Your job is to understand the owner and his business and anticipate his needs. Write RFPs, don’t respond to them.
- Educate your customers and prospects. Share ideas and recommendations. Be a resource to your customers and prospects.
- Sell at the right level. Decision makers and influencers have different value systems. Get in front of decision-makers early in the process.
If you have questions about how we help commercial and business banking sales teams through onsite sales training, webinars and consulting, call Ned Miller at 610-296-4772. Check out our website http://mzbierlyconsulting.com for more ideas on how to generate more loan opportunities. You can sign up for our blog at http://www.mzbierlyconsulting.com/bank-sales-corner-blog. Recent topics include:
- Business Development Doesn’t Take a Vacation: 9 Ideas for Bankers
- Preparing for a First Call
- The Five Mistakes Bankers Make on Sales Calls
- How to Ask Customers for Referrals
Posted by Ned Miller on Wed, Jul 07, 2010 @ 10:04 AM
Have you just returned from a short vacation and found 630 e-mail messages waiting for you? You might just be interested in these eight suggestions on how to cut down on e-mail from a recent book entitled The Tyranny of E-Mail:
- Think before you send it. Is it really necessary?
- Don’t check it first thing in the morning or late at night. Who are you trying to impress? There are enough workaholics out there.
- Check your e-mail twice a day. OK, that may not be possible in your current job. But how about once an hour?
- Keep a written to-do list that includes e-mail messages you need to send. Do it all at once.
- Give good e-mail. Keep them short. Use the subject line. No silly “Thank you” messages.
- Read the entire incoming e-mail before replying.
- Do not debate complex or sensitive matters by e-mail. Call or better yet, walk down the hall and talk face-to-face.
- Schedule media-free time every day. LinkedIn, Facebook, YouTube, e-mail—there are other ways to connect with people. And other things to do with your life.
Agree or disagree? Let me know any ways you’re coping with the deluge of e-mail at nmiller@mzbierlyconsulting.com.
If you’re interested in tips on how bankers are using letters and e-mails to get in the door with prospects, check out a recent article by Ned Miller at http://www.mzbierlyconsulting.com/getting-in-the-door-with-prospects.
Posted by Ned Miller on Tue, Jun 22, 2010 @ 05:05 PM
Heading to Italy for two weeks in August? Working on getting in beach shape for your vacation? Trying to get your golf handicap below 10? Reading the complete works of John Updike?
Whatever you plan to do this summer outside of work, here are some business development ideas for bankers:
- Do something nice for your best customers. I'm not talking about sending them tickets to a baseball game or a concert, although that's not a bad thing to do. Let them know you're thinking about their business. If you have something specific in mind-maybe something that would improve the way they manage their cash-visit them. If you don't, visit them anyway.
- Bone up on the competition. Mystery shopping is not just for branches. Use your network of customers and prospects and COIs to find out what your top competitors are doing with their business customers. Share your insights with your colleagues.
- Take a product partner to lunch. Get to know your Cash Management rep better. See if he knows anybody on your prospect list. Pick your Wealth Management contact's brain about what she's seeing in the market.
- Do some industry research. Not the First Research or RMA kind-everybody does that. Visit some trade association websites to see whether you can learn some things that will make you more knowledgeable about the issues facing your customers and prospects. Attend a trade association meeting.
- Meet some friendly accountants. Review all the financial statements you have received this year and see whether you know all the CPAs who prepared them. If you don't, ask your customers to set up a lunch so you can meet them.
- Write an article for a local business publication on a topic that would be of interest to your prospects. Milk it for all it's worth. Before mailing it to the editor, send it to your customers and prospects for comments. After it's published, get a PDF of the file and share it with everybody you know who might be interested.
- Review your relationship plans with your Sales Manager. What, no relationship plans? Send me an email at nmiller@mzbierlyconsulting.com and I'll get you a template that you can use.
- Keep improving your professional skills. Be honest with yourself about what you need to work on. If you're a credit wiz who struggles with selling, sign up for a webinar or buy a book on prospecting. If your product knowledge is sub-par, get some tutoring from one of your colleagues. Lousy at negotiating? Take a course.
- Show your prospect list to your satisfied customers. And to your COI buddies. You might be surprised how inclined they are to help you with your business development efforts. According to a Greenwich survey a few years back, over 65% of business customers would be willing to refer their bankers to others. Most are never asked to do that.
Summer is a time to recharge your batteries. But it's also a time to refocus your energies on how to retain your customers and acquire new ones.
Looking for a suggestion on how to jumpstart your prospecting efforts this summer? Check out our archive of recorded webinars on prospecting at http://mzbierlyconsulting.webex.com/ or call Whit Midkiff at 727-741-0766.
Posted by Ned Miller on Thu, Jun 17, 2010 @ 10:14 AM
If you want to read magazines on most domestic plane flights, you better bring them on board yourself. That is, of course, with the exception of your complimentary, monthly in-flight infomercial.
The May 2010 issue of USAirways' journal touts itself as "the magazine that connects you." It's not clear to what-maybe the guy who filled out the crossword on page 100.
I confess to skimming these things in search of a laugh. More often than not the chuckles these days come from advertisements. No matter how often I see it, I always read the one for the Rosetta Stone language course that entices a Midwestern farm boy to study Italian to be able to seduce a movie starlet on the Via Venetto. OK, anything that gets Americans studying foreign languages is a good thing, but really, guys...
Then there's Quickgym. Four minutes on this contraption (a value at $14,618) will get the same results as:
- 25 to 45 minutes of cardio training
- 45 minutes of lifting weights
- 20 minutes of stretching
The ad always lists how a typical buyer passes from total skepticism to a near religious conversion in less than 30 days.
If only it were so easy. Mastering anything-a sport, a second language, sales-is hard work. It may start with a dream-6 pack abs, fluency in another tongue, big commissions-but it always takes time.
In his book Talent Is Overrated Geoff Colvin says that 10,000 hours is the ticket to virtuoso performance in the arts or sports. In his view the difference between great performers and the rest of us is time and deliberate practice.
What does this mean for bankers interested in improving their sales results? Quite simply, don't be duped by the ads promising easy paths to success. If you want to master the techniques in a sales course, be prepared to use them over and over. Four minutes a day isn't enough: by my count it'll take about 417 years for you to become great using Colvin's measure.
Our next webinar is on June 28 and is on Negotiating Price. You can register by going to http://mzbierlyconsulting.webex.com. Or for a complimentary consultation on how we may be able to assist your sales teams, call Whit Midkiff at 727-741-0766.
Posted by Ned Miller on Mon, May 24, 2010 @ 08:43 AM
A survey conducted by Greenwich Research a few years ago revealed that nearly 50% of business customers had not been on the receiving end of an effective sales call from a banker in the preceding 12 months. That had been our experience at MZ Bierly Consulting. The sales calls that bankers had made on us had been uninspiring, unmemorable and unlikely to lead us to move our business. Until last Monday.
Some bankers think that the first call is all about developing rapport with the customer and spend too much time shmoozing. Others think that because business owners are typically pressed for time they need to cut to the chase and start talking business quickly.
Experienced bankers know that taking the time to get to know a prospect is very important. They also realize that by the end of a first meeting they need to find at least one valid business reason for the prospect to agree to see them again in the not too distant future. How do you do both in the first call?
It begins with how you sell the initial meeting. If your normal approach is to say something like "I just want 10 minutes of your time," good luck. Generally speaking, a first meeting with a business prospect takes about 60 minutes. In that amount of time, you can begin to build a relationship and identify possible needs that could provide the basis for a series of follow-up meetings.
Some bankers protest that they could never get an hour with a business customer. "They're too busy to spend time listening to me talk about banking products." Exactly. That is why the first call has to be about them, not about you and your products. Business owners are usually prepared to talk about themselves and their business. You will find that the same folks who have little time for bankers pushing products will spend time answering your questions about how their business works.
Listen to what impressed Buck Bierly about the call that two business bankers made on him last week. It's all true. Click on this mp3 file: HOW TO IMPRESS A BUSINESS OWNER: BUCK BIERLY
For more information on how to conduct a first call on a prospect, go to http://www.mzbierlyconsulting.com/keys-to-an-effective-first-call-on-a-prospect.
You can also find out more about our recorded webinar series on prospecting by going to http://mzbierlyconsulting.webex.com/ or emailing Ned Miller at nmiller@mzbierlyconsulting.com
Posted by Ned Miller on Sun, May 16, 2010 @ 06:09 AM
In case you missed it, the U.S. Post Office is in trouble. Until 2006 the Postal Service made an annual profit. But since then, a falloff in mail, in large part because of the ascendance of e-mail, has led to losses which this year will be in the neighborhood of $7 billion.
The Postmaster General is considering a number of cuts to reduce the budget gap. He's also investigating the possibility of adding more products, including some new direct mail tools for small businesses.
I have a modest suggestion for patriotic bankers. It won't make a huge dent in the deficit, but it might help you stand out in the crowd. Start using snail mail to communicate with customers and prospects.
I realize you can't wean yourself off of email entirely. But why not mix it up, particularly with those marketing "touch" pieces that you send to stay top of mind? A recent economic forecast or a particularly good industry assessment can get lost in anybody's e-mail box. Attach a handwritten note to a snail mail salvo may take a little longer but might just get through the clutter.
By some accounts George H.W. Bush got elected President because of his prodigious personal note-writing on the campaign trail. Legendary car salesman Joe Girardi religiously sent postcards to his customers, often with nothing other than his name and a scrawled "Thank you." Did this lead to more referrals? Joe was convinced that it did.
Yes, you say, but this is another time. We have LinkedIn, Facebook, Twitter. But think for a minute: If you want to be different, why not send that hard to reach prospect a letter? The same thing could be said of faxes-they're rare enough these days to stand out too.
See you at the post office.
Agree or disagree? Send me your comments at nmiller@mzbierlyconsulting.com.
Sign up for our blog at http://www.mzbierlyconsulting.com/bank-sales-corner-blog. Recent topics include:
- Preparing for a First Call
- March Madness
- Prospecting for Bankers: Get a Coach
- How to Ask Customers for Referrals
To follow Ned on Twitter click on his link: http://twitter.com/nedatmzbierly.com
Posted by Ned Miller on Wed, May 05, 2010 @ 10:47 AM
Question: Why is getting in the door with prospects becoming harder for business bankers?
Answer: Some people think it's because business owners have less time than they used to. I think the real reason that bankers are having trouble arranging appointments is because they don't realize that they are competing for the business owner's time. And, for a prospect to give up his valuable time, he will need to get something of value from you.
How do you demonstrate possible value and get a prospect interested in talking to you? Here are several approaches that will improve your chances. (In parenthesis is our estimate of the success rate that a typical banker speaking to a decision maker has for each.)
1. Third-Party Referrals: Use a referral from an existing client, an acquaintance, or a third-party professional. Be sure to ask for permission to use his or her name before using it as a referral: "Betty Jones from XYZ Electronics suggested that I contact you." (65%)
2. Industry Experience and Expertise: Focus on your experience and expertise with the prospect's industry. "Over the last few years I've worked with a number of trade associations like yours and I'd like to discuss with you some of the ideas . . ." (30%)
3. References: Refer to a piece of news, an article in a publication, or the company's website. For example, if the prospect is a dental practice: "I saw on your website that you do cosmetic dentistry..." (20%)
4. New Situations/Products/Services: Discuss a new situation, a new product, or any innovation at your bank that might be of value to the prospect: "We recently enhanced our cash management products to provide wholesalers with . . ." (10%)
5. Community Approach: Discuss the fact that you both do business in the same community and could be a resource for each other in the future:
"You've been doing business in this area for a number of years and so have we. Unfortunately, we've never had a chance to meet. I'd love the opportunity to find out more about your business, where you are, and where you're going; to tell you more about us and the kind of things we're doing. And then, who knows, maybe we can be a resource for each other somewhere down the road. Do you have some time in the next week or so to get together?" (Varies by market. In small towns this can work 80% of the time. In larger metropolitan areas, it has a much lower success rate.)
All of these can work but none is foolproof. Use the one that fits your situation. Obviously, if you have a referral from a satisfied customer, use it. Some relationship managers weave elements of several of the approaches into their calls to schedule appointments-the more ammunition the better!
Tip for Bankers: If you're struggling setting up appointments with prospects, write out the key points of your opening for the next 10 calls you make. Review them with your Sales Manager or a colleague before you make the phone calls. See whether your percentage improves.
Interested in more tips on how to get in the door? One of our recent articles in the ABA's Commercial Insights newsletter answers common questions about prospecting including:
* The pros and cons of sending a letter first
* Using scripts
* How to treat secretaries and administrative assistants
* Following-up after the first meeting
You can download it by going to http://www.mzbierlyconsulting.com/getting-in-the-door-with-prospects.
You might also want to check out the recorded webinar on the same subject in the Prospecting Clinic series at https://mzbierlyconsulting.webex.com
Posted by Ned Miller on Fri, Apr 23, 2010 @ 04:15 PM
Did you watch the Masters this year? If you're a real Golf Channel addict, you might have heard about the coaches that some of the top professionals turn to for advice. These aren't household names like Coach K, Bill Belichick and Joe Torre; they're more like Jack Lumpkin and Craig Harmon. Who?
Well, these guys are not exactly unknowns. They rank 19th and 20th on the Golf Digest list of top teaching professionals. They don't give away advice for free-a week of lessons at Sea Island with Jack isn't cheap-and they do count top PGA Tour types as students. (Not Tiger Woods, though: Craig's brother Butch was one of Tiger's coaches before his fall from grace.)
But most of the people these two teaching pros advise have a hard time breaking 90. They hack and slice their way around the golf course and if they have delusions of grandeur, it's probably more likely about winning the sixth flight of a Member Guest Tournament than the U.S. Amateur.
Coaching average-performers (whether they're golfers or bank sales people) is clearly different from working with high-performers. What Jack and Craig know is the following:
- While not everybody will become great, everybody can get better-eventually. If better means consistently shooting in the mid-90s, great.
- There are certain things that you can't coach (e.g. attitude, competitiveness, etc.)
- You shouldn't try to change more than one or two things at once. (Too much sales training assumes you need to teach everybody everything all at once.)
- You often have to review the basics with people.
- Breaking the process down into its component parts can help a lot. (As an aside, that's why slow motion video is now routinely used in analyzing golf swings.)
- Small adjustments can produce significant improvement.
- You can only make so much progress in a lesson. For golfers it starts on the practice tee but has to move to the course.
- Once the basics are in place, it's consistency that matters.
- Most average-performers are looking for how-tos and techniques, not theories or concepts to improve their golf game or sales skills. They want to develop confidence handling challenging situations.
- Even the best performers can benefit occasionally from objective, expert coaching. (Phil Mickelson, the Masters winner this year, has coaches who help him with many different things--e.g. conditioning, diet, putting, sand shots, etc.)
So the next time you're looking for coaching inspiration, think about Jack Lumpkin and Craig Harmon. They know it's about incremental improvement, consistency and confidence. And they know how to help average-performers progress.
For more coaching tips go to http://www.mzbierlyconsulting.com/tips-for-sales-managers. You can also check out our archived webinar on Pre-call, Post-call Coaching at http://mzbierlyconsulting.webex.com.
Posted by Ned Miller on Thu, Apr 15, 2010 @ 04:29 PM
Selling is a form of social influence. Effective sales people influence the thinking of customers, prospects, and COIs. A value proposition is the method of social influence that a salesperson uses (consciously or unconsciously). Here are some specific things Sales Managers can do:
- Define, articulate, and train your team members to focus on a value proposition that best matches your long-term business objectives. It may not always match the values of a given customer or prospect, but it creates a sharper focus of who you are at a company level and a sales team level. For example: "We are financial experts. An expert identifies, defines, and proposes solutions to a business owner's needs before they become a request."
- Understand the value proposition that your relationships managers use naturally in prospecting. Make sure they understand their tendencies and talk about when they will have to adjust them on sales calls. Selling service and relationship banking to a price shopper does not lead to success.
Click here to listen to some of Buck's thoughts on value propositions.
You might also be interested in signing up for the sales training webinar on "Value Propositions: It's Not Always About Price" on April 26. You can register for the webinar three ways: (1) Call Ned Miller at 610-296-4772 or (2) email him at nmiller@mzbierlyconsulting.com or (3) go to our Webex website at https://mzbierlyconsulting.webex.com and pay the $225 fee (per line, not per person) by credit card. We do provide team discounts for organizations that are interested in using multiple webinars. Call for details.