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 Wed, Mar 17, 2010 @ 04:22 PM
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.
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.