How Bankers Add Value: Asking the Right Questions
Posted by Ned Miller on Sun, Mar 27, 2011 @ 09:19 PM
“You can add value in two ways: You can know the answers. You can offer the questions. Relentlessly asking the right questions is a long term career, mostly because no one ever knows the right answer on a regular basis. --Seth Godin
There are a lot of different value propositions. Some bankers think that the only way to get new business is by undercutting the competition’s price or providing more flexible (translation: looser) credit. They say, “Give me your statements and I’ll come back with a better offer.”
But, you say, that’s not me. You know that portraying yourself as the low-cost provider isn’t realistic. But are you unwittingly positioning yourself as the cheapest game in town? Do you:
- Apologize to customers for your pricing?
- Have difficulty justifying fees?
- Struggle with what you’re worth as a banker?
Maybe you rely on your responsiveness to customers—“I’ll always be accessible. Here’s my business cell phone and my personal cell phone. If you ever need me…” Taking care of customers is arguably an important skill for salespeople. But can you demonstrate that to prospects? It’s hard to be convincing—particularly when every other banker on the street says the same thing.
The highest performing salespeople have figured out that they have to deliver both good service and good ideas. They convince prospects that it’s their banking experience and expertise helping business owners get where they want to go that matters most.
High performers work hard to differentiate themselves by getting to know prospects well—how their businesses operate, what their long-term goals are, etc. They build their careers on asking lots of questions—good ones, the kind that demonstrate to their prospects that they are genuinely interested in learning first about what’s unique about their businesses.
These advisors—and that’s what they become for their clients—are comfortable sharing their perspective on what works for comparable businesses. They come to meetings armed with ideas on how to improve a business owner’s situation.
So how does this value proposition sound: “Mr. Prospect, my job is to understand your business, anticipate your needs, and help you make the best financial decisions for you and your business.”
Action Items: Do research on a key prospect before your next meeting. Find relevant industry information from e-Mentor, IBIS World, First Research or LexisNexis. Plan what questions you need to ask to get a better understanding of how the business operates. Don’t pitch products before you understand the owner’s long-term (3-5 year) personal and business objectives.
Listen to what Buck Bierly views as the five most common mistakes bankers make in sales calls:
- Planning one meeting at a time
- Not preparing “cognitively”
- Using the wrong question set
- Selling to the first need
- Assuming the business owner is committed to resolving the need
You can download a four minute mp3 file with Buck’s thoughts by going to http://www.mzbierlyconsulting.com/the-5-mistakes-bankers-make-in-sales-calls
You might also be interested in signing up for our recorded webinar “5 Mistakes Bankers Make in Sales Calls.” You can register for the webinar by going to http://mzbierlyconsulting.webex.com