Bank Sales Corner

Give Before You Get: Think Referrals

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So you missed it. "Make a Referral Week" was March 8 to 12. But even if you didn't provide a stimulus to the economy last week, you can still get in on the action.

Start by thinking about who you might be able to assist with a good referral. At the top of your VIP list should be your key customers.  You should also think about your COIs, and even your prospects.  

My guess is that some of them have referred business to you in the past; others might be in a position to do so if you ask them the right way. But slow down, this is not about you asking for referrals, it's about giving them referrals. 

The next step is to ask yourself whether you know the profile of an ideal customer for any one of these VIPs. If you don't, it's time to ask. Before picking up the phone, though, you might want to think about how you're going to frame the conversation.

It may be enough to joke about missing "Make a Referral Week."  Your contact may or may not be suspicious about your intentions if you tell the truth: "Many of the best leads I get are referrals from satisfied customers. I was thinking about whether I might be able to refer business your way. Would you like to set up a time to talk about who your ideal prospects are? "

At the same time, you could inquire whether they have identified any specific prospects whom you might know.  Some of your contacts might surprise you and actually share names of their prospects with you.

There's one other thing you should ask about. If you do identify a good prospect for your customer or COI, what's the best way for you to make the introduction? The answer may well depend upon the nature of your relationship with the party you're referring, but it's useful to have an idea of how the handoff could be best accomplished. 

OK, but what if you don't know anybody to refer?  That could change, particularly if you now have a  clearer idea of what they're looking for. There's no need to be embarrassed. "I can't think of anybody now, but you never know" is a perfectly appropriate answer.

Don't be surprised if this conversation does lead to a question about how they might be able to reciprocate. Decide whether you want to take them up on it now, or defer it to another time.   My recommendation is that you should definitely plan on doing it at some point.  (According to research from Greenwich, over 60% of business customers are willing to provide referrals to their bankers if asked; fewer than 25% are asked.)

One final thought: Bankers should make every week "Make a Referral Week."

If you want to get some specific coaching on how and when to ask for referrals, go to our blog at http://www.mzbierlyconsulting.com/bank-sales-corner-blog.

CEOs on Bank Sales Process

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This week I had the chance to spend time with three wise bankers, each with 30 or more years in banking. Two are CEOs, the other is a Chief Credit Officer who served as a bank president earlier in his career. When you find yourself in their company it pays to listen up.

Here are some of the things they said about selling in banks, which are relevant whether you're a management trainee or a veteran.

• It is a good time to be a banker. Not an easy time, for sure, but one when it's possible to learn a lot.

• Don't expect things to return to the way they were in 1997 or 2003 or 2007. The banking landscape has changed forever. Don't let yourself get nostalgic.

• You don't have to be a great salesperson to be successful in banking. But you have to be active and visible in your community and committed to pursuing new business opportunities.

• It's not about making calls; it's about building relationships.

• Don't kid yourself: It takes time to develop a professional network.

• Be a good partner. If you team well with bank specialists and line-of- business partners you'll go far-and your customers will clearly benefit.

• It's easy to lose sight of what's important. There's a tendency today to spend too much time thinking about operational or administrative matters. One president remarked that if some branch managers spent as much time worrying about taking care of business customers as they do about locking the vault, they'd be a lot more successful.

• While it's important to learn about the bank's products and services, it's more important to learn as much as you can about your customers and prospects.

Agree or disagree? Send me your comments at nmiller@mzbierlyconsulting.com.