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 Tue, Mar 23, 2010 @ 05:36 PM
When March Madness rolls around, I do more than grab for the remote to check the college basketball coverage on television. I also pull out my copy of "Wooden: A Lifetime of Observations and Reflections On and Off the Court."
John Wooden, the UCLA basketball coach whose teams won 10 NCAA championships in 12 years between 1964 and 1975, is eminently quotable. Here are some that I like:
"Failure to change is often just stubbornness that comes from an unwillingness to learn, an inability to realize that you're not perfect. There cannot be progress without change-even though not all change is progress."
"You must never stand still. You're either moving upward a little bit or going the other way. You can't expect to go upward too quickly, but you can sure go down very quickly...Progress comes slowly but steadily if you are patient and prepare diligently."
"When you are too engrossed in those things over which you have no control, it will adversely affect those things over which you do have control-namely, your preparation."
Perhaps my favorite piece from this collection is Coach Wooden's "Eight Suggestions for Succeeding." At the risk of boring those relationship managers who do not follow sports, I offer them to you as timeless reminders on how to become a better professional.
- Fear no opponent. Respect every opponent.
- Remember, it's the perfection of the smallest details that make big things happen.
- Keep in mind that hustle makes up for many a mistake.
- Be more interested in character than reputation.
- Be quick, but don't hurry.
- Understand that the harder you work, the more luck you will have.
- Know that valid self-analysis is crucial for improvement.
- Remember that there is no substitute for hard work and careful planning. Failing to prepare is preparing to fail.
I'd suggest that you ponder #7 for a minute. If you objectively evaluate your own professional skills, it often becomes clear what you need to work on. But don't stop there. Ask for some coaching. That will help you improve your sales results and get to the next level.
Visit our website for selling tools and tips for bankers at http://www.mzbierlyconsulting.com. Sign up for our blog at http://www.mzbierlyconsulting.com/bank-sales-corner-blog. Recent topics include:
- Prospecting for Bankers: Get a Coach
- How to Ask Customers for Referrals
- Relationship Managers: How to Be a Better Resource for Your Customers
- CEOs on Bank Sales Process
Posted by Ned Miller on Mon, Feb 22, 2010 @ 05:37 PM
Many business customers today are demanding a higher level of professional expertise from their bankers. How do you become a more valuable resource for your best customers? Here are a few things to focus on:
- Stay current on the financial services industry. Even if your market is Main Street you need to know what's happening on Wall Street-and be able to explain it to your customers.
- Learn as much as you can about your customers-their industries, their major customers, their markets, etc. (One great way to do that is by attending meetings of their trade associations and reading their industry publications.)
- Track closely what your competitors are doing. In addition to making sure you circulate this intelligence to your colleagues and sales managers, you might also decide to share this information with selected clients. If, for example, a bank is promoting a new treasury management product, you might alert your best customers to your bank's plans to launch a similar product soon.
- Develop a specific, written relationship-building plan for your key customers. Introduce others from your organization to them. Research shows that customers are more inclined to buy additional products from their primary bank if they know the product specialists there. Senior managers can also help retain key relationships.
- Lobby internally on behalf of your customers. Many bankers think first of advocating for their clients on credit issues. But don't stop there: insure that your customers receive excellent customer service from all areas of the organization.
- Keep developing your own professional skills. To most business customers the relationship manager is the most important person they deal with at the bank. If you're not getting better year after year, you're shortchanging your customers. Don't let them down!
Agree or disagree? What else would you add to this list? Let me know what you think at nmiller@mzbierlyconsulting.com .
For ideas on how to develop your own skills visit http:/www.mzbierlyconsulting.com or call 610-296-4772.