Is it Service or Sales?

Is it hype or The Edge we want over our competition?
 
Most of our bank products are virtually the same. As soon as one bank launches a new product, many others jump on the 'bank wagon.'  That leaves most financial services managers and marketers with a perennial dilemma: How does one bank differentiate itself from another in this competitive and tight marketplace?
 
The answer I frequently hear when I conduct training seminars is: OUR SERVICE.  This gives me pause, however, and should make you analyze:  how do your CSRs, private bankers and lenders really make a difference?  What do they really do to give you an edge in the marketplace?
 
One investment rep I spoke with recently answered the question by saying he likes to "snow the customer with hype and a lot of information."  I have to ask, "How does that make a good first impression?  How does that help build rapport and trust?"  Bank employees should remember how to make it easy to shift their accounts.  Another hint:  do not insult the customers' intelligence by using bank lingo and difficult to understand terms.  Most customers have a fair to pretty good understanding of investment terms and bank products.  Therefore, it would be better to treat the customer as a partner in these decisions by talking to the customer at the same level of their expertise.
 
What can a manager really do to drive the kind of high level of service and sales you desire to set yourself apart from the competition?  Instead of hype, here are some successful behaviors and strategies to use to help you gain The Edge:
 
1. Track issues that are brought up in customer surveys and MOVE on these by creating a check list targeted at resolving issues, not just talking about them.
 
2. Reconnect with former customers to discover what went wrong and how the relationship changed so we can try to woo them back.
 
3. Conduct customer focus groups quarterly (most banks – if they do these – conduct them only once a year) to keep on top of changes in the market, shifts in consumer needs and interests.
 
4. Keep sharing 'best practices'.  For example, consider the fact that sometimes the outsider (of a department or a consultant) can best provide valuable insight into sales, operational issues as they are more objective.  Sometimes those who are not in that particular department have the best insights and practical ideas.
 
5. Require each supervisor to observe each employee at least once a week to hone their customer service and sales skills and offer suggestions; this will reap boundless rewards.  The supervisors and managers should be spending at least an hour a day observing and coaching immediately.  Think about this:  You wouldn't wait six months to coach your 16 year old when they are learning to drive so why would you wait six months to give employees feedback?
6. Hire a mystery shop company so you obtain objective measures of service and sales.  Even better would be to find a company who will customize the measurements to what you want to discover about employees' performance
 
7. Turnover costs are equal to 40 percent of employees' earnings so preplan how to keep good employees motivated with small rewards that change quarterly.  There is no documentation that supports the idea that spending a large amount of money motivates performance. We have all had those employees who feel the behavior is so difficult to perform or their attitude is so poor that no matter how much incentive money we provide, it is not a strong enough 'carrot' to motivate them to change. Therefore, choose to give small, meaningful rewards - meaningful is the important word- to keep morale and performance up.
 
I have found that a thank you note from the manager packs a powerful punch because the employee is impressed by the fact that their busy manager took time out of their busy schedule to write that note. Furthermore, we know it is the surprise 'reinforcer' that is powerful like the bank president sending an email thanking the employee – use their power!  Also, 'reinforcers' have to be specific to the behavior and to that particular employee so make sure to pinpoint what that employee did and how much you appreciated it.  We have all too often seen that blanket rewards have very little power in motivating. Everyone either basks in the glow thinking they are all good or everyone thinks it must be someone else who is not a good performer:  it’s the ‘it can’t be me’ fallacy.
 
8. Hire the best employees.  If you have substantial turnover, review the recruiting and hiring processes and verify that the hirers understand all the facets of the job.  It costs a small fortune to recruit, hire, train, and then pay 3 months of salary and benefits, only to find that this is not the best person for the job.
 
9. Focus on how well the employees communicate with customers and each other and you at the interview.  Spend the time and money - and in fairness to the employee – by providing on going year-in, year-out training to hone their skills in service and sales. Employees need to hear it over and over again, have to have a chance to practice the skills over and over again to become comfortable with what we want them to do.

10. The biggest contribution a supervisor, manager, president can make is to treat the employees with respect, dignity and sensitivity – while being mindful that employees' personal issues cannot have too much power or influence on performance.

11. Begin a mentoring program or at least have average performing employees be paired with outstanding employees so they learn how to apply the concepts from training, gather good phrases to use, learn practical effective methods of working with customers.

12. Last but certainly not least - ask the employees for their input whether it is on Dress Code issues or on the next product launch or on what their customers are saying or complaining about.

For more ideas on how to gain The Edge and how to utilize your precious time as a manager effectively – get the most bang for the buck out of your employees,  please contact:

 
Michaelene S. Mikus
President
MSM Consulting, Inc.
Specialists in Enhancing Service and Growing Sales
762 Wedgewood Drive,  Suite 202
Crystal Lake, IL  60014
Office: 815-444-9016
Email: msmikus@ameritech.net

Posted by Michaelene Mikus at 2/15/2008 6:40 PM
Categories: Selling Strategies, Sales Training, Management
 

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