Posted by Ned Miller on Thu, Aug 26, 2010 @ 10:29 AM
As a high school basketball player I heard my coaches repeat certain messages day in and day out. On offense we were encouraged to “hit the open man.” On defense our coaches told us to “see the man; see the ball.”
As a consultant I have observed how sales coaches effectively deliver messages to their teams. Recently one senior commercial banker remarked to his boss, the bank president, that he was impressed by how Chris frequently reminded them of the importance of the sales process that the bank had embraced. Chris repeated the three word summary that they had heard in all the training sessions: “Identify, plan, execute.” He felt that the repetition was valuable.
What makes for an effective message? In my experience the best messages are clear, concise, and consistent. Wells Fargo, which has long highlighted the importance of cross selling as a driver of profitability, uses the phrase “Eight is great.” Bankers throughout the company know by heart that this is one of the keys to the bank's success. It is short like “hit the open man,” it is easy to remember, and my guess is that it does keep people on track.
The messages that your sales team needs to hear from you should be equally pithy and memorable. In this environment, many bankers are reluctant to prospect; some come up with a litany of reasons why prospecting is difficult. “I'm too busy.” “We’d just turn them down.” “There's no demand for loans.” “They're happy with their current bank.”
Setting aside for a minute the possibility that some or all of these are true, you still need to let people know that prospecting is a critical sales behavior. How can you deliver that message?
Certainly, you can take advantage of your weekly meetings. If you want to drive home the importance of acquiring new clients, some portion of your meeting should include a discussion of prospecting. In addition, your weekly sales reports should also differentiate between calls on customers and prospects. Discussions of pipeline opportunities should do the same.
The power of your messages regarding prospecting can be amplified by other members of your organization. For example, if the bank CEO or the head of commercial banking uses the same terms and phrases in conversations with all team members, your message is likely to stick.
So my advice is to spend some time brainstorming with other sales managers what specific messages your team needs to hear today. Boil them down to three or four that you want to use over the course of the next 3 to 6 months. Like the banker who recognized the power of repetition in the phrase “Identify, plan, execute,” you may begin to see changes in people's thinking and behavior.
But remember that you may have to repeat yourself a lot. That's what basketball coaches do to make sure that their teams remember what they need to at crunch time.
Interested in more on coaching? Check out our archived webinars at http://mzbierlyconsulting.webex.com or visit our blog for more articles at http://www.mzbierlyconsulting.com/bank-sales-corner-blog/
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 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 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 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.
Posted by Ned Miller on Mon, Mar 08, 2010 @ 09:03 AM
Getting referrals from satisfied customers is the best way to get in the door with prospects. If you're not sure how to ask a customer for help in your prospecting efforts, here are several approaches.
1. You have just finished resolving a problem for your customer Jack Smith. He thanks you for your help and you respond:
"I'm glad I could help you out. If you have minute I could use some help too. (Wait for a response.) Over the last few months I‘ve been working to build my customer base. To get things moving I built a prospect list of 20 names of businesses in the area that would be a good match for me and the bank. As you know, getting in front of good prospects is tough going. Would you be willing to take a minute and look over my list? Any insights or help you could give me would be a great help."
2. You have just finished closing a loan or completing a cash management installation for your customer Jane Doe. She thanks you for all your help and you respond:
"If you have minute I was hoping you could help me out on a project I've been working on." (Wait for a response.) Over the last few months I‘ve been focusing on building my customer base. To get things moving I built a prospect list of 20 names of businesses in the area that would be a good fit for me given my background and expertise. Since you've been doing business in the area for over a decade I thought you might know some of the businesses on my prospect list. Would you be willing to take a minute and look over my list? I would be grateful for any insights or help you could provide."
3. You have just completed a third call on a prospect. This call and the previous call s on this prospect have been very well received. At the end of the call the prospect thanks you for some of the ideas you discussed on the call. You decide to ask him for a referral.
"Do you have another minute? I could use some help with my prospecting. (Wait for a positive response.) At the beginning of the year I made a personal goal to bring in 10 new customers this year. I consistently maintain a prospect list of 30 names of businesses in the area that I would like to have as customers. Since you have an extensive network here I thought you might know some of the businesses on my prospect list. Would you be willing to take a minute and look over my list? I would be grateful for any insights or help you could provide."
Remember that you have to earn referrals first. But if you've done that, don't be bashful about asking for help! It's often the quickest way to sales results for bankers.
For more information on asking customers for referrals, visit our website at www.mzbierlyconsulting.com or call 610-296-4772.
Posted by Ned Miller on Sun, Jan 31, 2010 @ 05:03 PM
Here's a quick fitness test to start the year. Answer each question honestly.
* What are your strengths in selling? Weaknesses? What things do you need to focus on to improve your sales results this year?
* What worked well for you in 2009? What do you plan to do differently in 2010?
* How much time are you spending selling-versus things like handling routine customer service inquiries, credit administration and underwriting? Is there anything you can do to allocate more time to business development?
* Do you have a plan in place to retain your most profitable customers?
* Are you allocating the right amount of time to the customers and prospects with the highest potential?
* Are you delivering a compelling and relevant value proposition for your targeted prospects? How do you differentiate yourself from your competition?
* Are you using effectively the tools and training you have received? What additional training do you need?
* Do you have a strategy to develop more referrals from line of business partners, satisfied customers and COIs?
One final thought: If you don't like your answers, sit down with your sales manager or a colleague whose opinion you value. Talk candidly about the challenges you face. Invite suggestions. Listen to what your associate has to say.
Interested in refreshing your sales skills? Visit our website to find out about our archived webinars on acquiring and expanding relationships. For more information go to http://mzbierlyconsulting.webex.com.