Q&A on Closing: Industry Standards on Prospecting for Bankers
Posted by Ned Miller on Tue, Oct 19, 2010 @ 04:41 PM
Question: Is there an industry standard/rule of thumb for an average banker closing a deal after a prospect visit (i.e. 5 new customers/50 prospects visited)?
Answer: The quick answer to the question is that for business bankers there is no industry standard based upon calling activity. That's not to say that this can not be analyzed. We look at several things:
* Is the banker initiating the prospecting effort or reacting to a defined opportunity? Proactive business development usually has a longer sales cycle from start to finish--we tell bankers to gear up for a 9 to 18 month effort that should include quarterly face-to-face meetings and monthly marketing touches.
* What is the source of the original lead? If it comes from a trusted professional referral source like a CPA, the chances of it closing are higher than if it's a referral from a branch manager. If the banker already has a relationship with the prospect--say it was a former customer at another bank--that can improve his close rate.
* Is the opportunity a pure transaction or is it about moving an entire banking relationship? Transactions--think a real estate loan--can happen more quickly and can lead to full blown relationships, but don't always.
* Does the prospect look like a good match for the bank's capabilities and credit requirements? You never know for sure until you kick the tires, but in targeted prospecting we try to get bankers to focus on the best matches. If they are reacting to prospects who are walking in the door, they're likely to encounter more price shoppers and credit problems.
Looking for more insights into prospecting? Sign up for the upcoming webinar on “The First Two Calls on a Prospect: 5 Proven Techniques for Building Momentum” on October 25 at 11 AM Eastern. You can register for the live webinar three ways: (1) Call Whit Midkiff at 727-741-0766 or (2) email him at wmidkiff@mzbierlyconsulting.com or (3) go to the upcoming webinars section of our Webex website at https://mzbierlyconsulting.webex.com and pay the $225 fee (per line, not per person) by credit card.
If you can’t make the live webinar, you will be able to view the recorded version within 24 hours of the event. We do provide discounts for organizations that sign up for three or more lines for a live webinar. Call 727-741-0766 for details.