how to sell bank products effectively

“Quite frankly, it makes those training sessions a whole lot more interesting when you’re talking about something beyond the required bank regulation training that some folks have heard 10 to 15 times,” says Greg Ohlendorf, who is president and CEO of the $150 million-asset community bank. “So, we just have to be diligent about keeping that up without being intrusive.”. Customer Experience & Customer Engagement Agency, Customer-Centric Agency & CRM Support Services, Email Best Practices Yield Higher Open Rates, Profits, Client Sees Lift in Email Performance, Customers, Using Newsletters To Build Customer Loyalty & Profits, How to Choose the Right Personal Finance Topics for Your Audience, Digital Banking in 2020: Navigating Trends and Transformation Through Strategy, Financial Services Content Marketing: Building the Case for Value-Added Content, 6 Strategies to Strengthen Your Refi Marketing Campaigns in 2020. Your business can save money by selling its wares online. Your tellers are the front line of your cross-selling strategy. ➢ Use your customer data to determine the most logical product/service combinations for your customers. Offering packages of three or more products/services lets you instantly create sticky customer relationships. “We have to be careful in setting goals and making sure those goals are being achieved in accordance with policy and procedure.”. - Greet them promptly. ), The figures below show how much longer, on average, a customer will stay with a bank, based on the number of products they hold with that bank.1, 1 product = 18 months But Wells Fargo is best in its class. Keep up a steady flow of outreach messages to recipients. 1. (See sidebar. Our services, solutions and more than 40 years of industry expertise will help you retain a loyal customer base and grow your portfolios. Set realistic sales goals Here, we share four tips to do it right — and reap the rewards. 5. 9. So, Clickbank acts as an effective platform on which product owners can advertise their products. Our free whitepaper helps you: Want to build a stronger connection between your brand and your customers? 3. Retention makes good dollars and sense. Today, community banks should look for sales experience, rather than just banking experience, when they hire. 2. From a customer standpoint, make sure there is a benefit to accepting the entire bundle together, at once, versus separately over time. Helping customers purchase products that help meet their personal banking needs. Acquiring new customers can cost eight to 10 times more than you would spend cross-selling products and services to existing customers. Banks have to get over the feeling that they have messaged on a topic too often. A product posted on various sites such as eBay or Facebook can have better visibility compared to when relying solely on a brick-and-mortar store or a cramped garage for exposure. 1. Tracking cross-selling activity can provide some insight on how to improve the sale of specific products and services. In this article, you’ll find 24 effective marketing tips to … 2 products = 4 years What follows are 5 ways on how you can effectively sell your products online. 1. However, according to studies that I conducted at two major banking institutions, many cross-sell efforts result in little or no improvement in customer profitability. Effective cross-selling organizations, such as American Express, complement the P&L perspective with a longer-term, balance-sheet view of the business and a … Learn how to crack the code to this trillion-dollar marketplace with these surprising strategies. The formula is fairly simple: if you do what someone successful does, you'll be successful as well. Effectively tracking a cross-sell ratio shouldn’t be difficult for community banks. Establishing social validation and a brand, when aided by marketing and emotional approach will serve to boost the sale of bank products. I have come to appreciate that selling to banks is one of the most difficult challenges for a Fintech startup. 4. “We have learned from the issues surrounding Wells Fargo that we have to be careful in what we do around sales and goal-setting,” says McDougald. Greg Sultan is CCG’s senior vice president, financial strategist. 4. For example, if a bank offers seven personal checking accounts, and through reporting finds four types of checking accounts were not opened, the bank can remove those from the brochure. And marketing budgets haven’t exactly blossomed. Focus on value. They have daily opportunities to ask customers about their needs, and then offer appropriate product or service solutions. How best to effectively sell your product For small businesses, getting their products to a wider market can be hard, but James Caan has some helpful tips James Caan 1615 L Street NW, Suite 900 Washington DC 20036 6. One of the most effective and quickest ways for a rookie sales professional to learn the finer art of sales is by modeling. “It is going to take some time to get customers to engage [with marketing messages]. Find out what is different. Asking the right questions helps the employee get to know the customer and … Community Bank Consulting Services Inc. provides its clients with a simple Excel spreadsheet tool to document points of contact with new and existing clients and what, if any, products were sold in that interaction. There isn't too much risk on either side of the table, but loan officers must be able to effectively close the deal. Cross-selling, the strategy of selling multiple financial products to existing customers, is easier said than done in the banking industry. To improve communication skills, staff should practice conversations, role playing different situations that might involve a new or existing customer. Competition among financial institutions is as fierce as ever. Pay close attention to the fundamentals every time you greet someone and you will increase your odds of being able to sell. Educating and informing customers about your bank’s products, services and promotions. This should be through email, direct mail, statement messaging, SMS texts and as part of the online and mobile banking platforms. Some examples of questions to ask include: 3. To be successful, it has to focus on customer needs. The more products a customer has with you, the longer and stronger their relationship is likely to be. It’s OK to service those existing accounts, but removing them from marketing brochures helps to “eliminate the clutter” and allows bankers to focus more specifically on relevant products that people want to buy today, notes David. He brings a problem-solving mindset to help clients with their database marketing and custom direct-marketing programs. Grabbing your buyer’s attention and opening the door to more fruitful sales conversations is the key to effective sales prospecting. A recipient may ignore that message the first 10 times it is put in front of them before they engage with it. Retention makes good dollars and sense. —Greg Ohlendorf, First Community Bank and Trust. Leverage incentive plans Provide regular training This cross-sell generally triples the profit of the account and forms the basis of most banks’ efforts. To succeed in cross-selling services to customers, a bank or credit union needs to keep the conversation going. In today’s competitive market, banks need to develop carefully planned, measured and specialized programs to engage and target customers effectively through cross-selling. You can generally sell private label products for a lot more than generic products. Probe for other products for your customer. Cross-selling strategies are evolving as community banks work to connect with customers both in person and online. We focus on our customers’ needs, and cross-selling is a byproduct of doing what is best for them.”. 5 Steps to Effective Cross-selling By effective, we mean putting time and resources toward the right things. 2. For example, Texas First uses an incentive plan that offers a bonus for individuals who meet individual and team goals that include hitting a cross-sell ratio goal, a sold product goal and a referral goal. This also is true of when promoting an existing employee into a sales position as a universal banker. You’ll need to experiment with different marketing ideas to understand your target audience and market your product to them. Maybe a customer is bored sitting in an airport or a waiting room and decides to open and read that email because he or she has nothing else to do. Practice with role playing 10. Some of common available banking products are explained below: 1) Credit Card: Credit Card is “post paid” or “pay later” card that draws from a credit line-money made available by the card issuer (bank) and gives one a grace period to pay. “It takes literally three minutes a month to calculate the cross-sell ratio for each account representative,” David says. And use as many direct channels as possible to reach out to your current customer base, including email, direct mail, statement inserts, banner ads on your website, ATM messaging, outbound calling efforts, etc. The bank pushes out scheduled messages to customers through different channels, including direct emails, Facebook, LinkedIn and Twitter. It is a whole different attitude towards selling that you have to adopt. Because people are banking in many different ways, it is important to reach out to customers across many different channels, including traditional and digital channels such as email, website and social media. 7. Communicate across multiple channels Digital retargeting of customers who visit your website or are part of your direct mail or email programs also is a highly effective and very efficient way to cross-sell customers. We’ve seen what works and what doesn’t, and we’ve put together a recipe for doing it successfully. - Make, and maintain, eye contact as they approach your wicket. Yet, many banks do not cross-sell effectively. So, when they do, it is a golden opportunity to talk with them about their financial needs,” says Sally A. Peters, president of Denver-based SA Peters Marketing and Consulting Inc. Staff should fully understand all of the bank’s products and services so they can engage customers in a productive conversation, and recommend products and services that will help them reach their financial goals. Train your tellers to be on the lookout for opportunities to cross-sell. Savvy community banks also recognize that declining foot traffic in branches means more cross-selling needs to take place in other channels. Beth Mattson-Teig is a writer in Minnesota. Here at Selz, we make the process of selling products online simple and powerful. Choose the right niche 3. ➢ Make sure every front-line staff member has the necessary training to converse constructively with customers. They can do this by studying customers' accounts and listening to what they say. Ask questions. 3. 1. ➢ Use data, such as transaction behavior, existing accounts, lifestyle factors and demographics, to segment customers into groups based on most-likely cross-sell opportunities. “It is going to take some time to get customers to engage,” he says. Leverage your data. Cross-selling, or persuading customers to purchase additional products, is one of a bank’s most powerful and efficient revenue-boosting tools. Having a cross-selling goal is important as long as that goal is achievable. Create a structured training program to give frontline employees the tools they need to sell. Asking the right questions helps the employee get to know the customer and understand his or her financial goals and needs. 8. Instead of a focused list of three or four checking accounts, a bank might have 10 different options. It might be possible for you to sell one or more of your company’s other products, to help them meet their new requirements. “Too many banks still sit back and wait for the customer to walk in the door, and that doesn’t work today,” says Lynn A. David, president of Community Bank Consulting Services Inc., which has offices in St. Louis, Mo., and Midway City, Utah. “[The goal] is not to sell them things they don’t need just to meet a number. Confidence and ease are key traits in staff members leading these conversations. Apply “verbal nods” to the conversation Use filler words to avoid the dreaded silence! Build on a Solid Foundation info@icba.org (202) 659-8111 (800) 422-8439. selling a big success. Most bank calling officers are inadequately prepared to effectively sell bank products. Banks need to focus on products that people want to buy and discontinue some of the obsolete products and services that do not attract new activity. Successful selling at retail banks and other financial services institutions has moved from a focus on products and “today’s special offer” to a consultative approach, one where the frontline sales person needs to be skilled in listening, understanding of customer needs, and suggestive selling techniques. One of the most common cross-sells in banking is for customers that open a checking account to get a debit and/or credit card. Some community banks piggyback cross-selling training on other routine training. “Everybody has different needs at different times. Effective cross-selling requires you to understand both the customer and which bank products are a good fit for him or her, based on age and financial position. “Everybody has different needs at different times. Do you conduct online banking through a computer or mobile device? People who are most effective at selling tend to be friendly, outgoing and comfortable with engaging people in conversation. Common Banking Products Available. A customer relationship marketing (CRM) agency focused on loyalty and retention. If you want three decades of proven success on your side, contact us today. Each message includes a link that brings customers back to the videos that are posted to the bank’s online education center. It also allows a bank to leverage people who do a very good job of cross-selling by using them as a resource to help train other sales staff. 5 Secrets to Selling Products Online 1. “We don’t know which message and which format is going to grab their attention, or which particular day,” explains Ohlendorf. Take the initiative to talk to customers and ask questions. Once you have those foundational elements, adding these cross-selling strategies into the mix can go a long way toward ratcheting down attrition — and pumping up customer loyalty. Here's how to get the deal done. Watch this video to learn how to sell a product. In addition to these five strategies, your financial institution should consider ongoing sales training for customer service staff; prioritizing transparency to foster trust; ensuring consistent brand messaging across channels; and continually tracking and measuring your bank’s cross-selling efforts. Customer Communications Group, Inc., is not responsible for products or services offered by third parties or websites mentioned and provides such information and sites solely for your convenience. It may be that their policies have changed. Imagine every question a prospect might ask and arm yourself with answers, linking each product fact to a customer benefit. The reason questions are a successful sales tactic is that they allow the customer to do most of the talking. Take a look at your website, your brochures and your marketing and see if you are telling enough stories and using enough emotional wording plus visuals in your approach. If a customer starts to buy fewer products from you, always check to ensure you understand the reason why. Throw your sales goals out the window. Subscribe to Independent Banker's eNewsletters. You can have the best cross-sell campaign in the world, but it won’t generate optimal returns if it’s targeted to the wrong customers or you are positioning the wrong products. Here are 10 ways to help your team hone its cross-selling strategies. The fastest and easiest way to win trust is to show the prospect that you really don't care about their business. However, smaller banks offer small closed-end loans--those which have an expiration date and a standard monthly payment. Many community bankers agree on the strategies that don’t work: aggressive, high-pressure sales tactics. Email or call 800.525.0313. See how a strategic content marketing plan can help you increase engagement, acquisition and retention. Bank products are sold by displaying credibility and trustworthiness to the customer. 1. “Finding a way to get messaging to customers is very, very important,” says Ohlendorf. Be persistent So how do you meet revenue goals? Before you start practicing your "runway" walk, understand that "modeling" means to learn from someone successful. Use these three sales prospecting techniques to build your pipeline and have more productive conversations with your prospects. —Sally A. Peters, You’re not asking employees to sell products customers don’t need. New customers are still likely to desert you in droves — at rates as high as 50 percent within their first year. Plus, it’s a proven fact that the more connected a customer is to your financial institution, the longer they’re likely to stay with you. Eliminate the clutter Some banks offer customers too many products and choices. Google. Work works 2. For example, First Community Bank and Trust has created a series of educational videos on a variety of topics, such as a video that explains how to use its First eMobile banking app. 3 products = 6.8 years. of what a customer might need,” Peters says. One of the challenges of cross-selling today is that people are not just walking into a bank branch, picking up the phone or reading the statement they get in the mail. Gone are the days when being a frontline bank employee meant conducting transactions from behind a teller window, and that was all. Make Your Customer The Hero Bank products, like certificates of deposit (CDs) and savings accounts, are generally only sold by the bank providing the product. Selling is important if you wan to succeed in business and in life really. Verbal nods, such as ‘uh-huh’, and ‘I see’, help to combat pure silence on your end of the phone, which makes the customer feel helpless and unappreciated. Google is always a good place to start. It’s not the customer’s responsibility to know what the bank … The data helps to identify people who are not effective at cross-selling based on the opportunities that they had, allowing the bank to provide more training, support and tools to those individuals to help them improve. Effective cross-selling requires you to understand both the customer and which bank products are a good fit for him or her, based on age and financial position. When you begin to master how to sell a product online, you give your business a chance to succeed. It is not because they can’t, but because the art and science of selling bank products is rarely taught. For loan officers, these are often the easiest products to sell to a potential borrower. Customers want value. To sell a bank product, you will have to work for the bank. Ask questions The focus should be on having a conversation with customers, figuring out what they want and making sure they get it, says Robin McDougald, a senior vice president and retail manager at $1 billion-asset Texas First Bank, which is based in Texas City, Texas. Engage in person. “Customers are coming into the branch less and less. Startup 5 Secrets For Landing a Whale of a Client Corporate America wants to buy from you! The downside is you do have to invest money in creating a brand, paying a manufacturer to produce a product, and buying in bulk. This is good cross-sell. But cross-selling isn’t as simple as telling every customer about every product and service you offer. “Driving Organic Growth: 5 Steps to Profitable Cross-selling,” Curry Pelot, Fiserv, 2010, http://www.bankintelligence.fiserv.com/cms/docs/5-Steps-to-Profitable-CrossSelling.pdf, accessed July 25, 2013. Then, you'll have to meet with clients, understand their financial needs, and work to solve them by providing your bank products. First Community Bank and Trust in Beecher, Ill., has expanded its required training and education sessions to include the cross-selling of various bank products and services, such as mobile banking and investment products. Is it important for you to earn interest on an account. Hire good salespeople Strengthening and lengthening customer relationships to boost your bottom line is the foundation of everything we do at CCG. The simple answer is retention: Focusing your efforts on sweetening the customer relationships you already have. With more than two decades of experience in the sales and marketing industry, he understands client needs and how to both establish meaningful goals and plan a path to reach them. Your attitude must be: "We have got the skills and the answers that you Mr customer are looking for. ➢ Make sure your marketing always answers the customer’s number one concern: “What’s in it for me?”. Some banks used to use a manual process and big banks use online workbooks to input production on new accounts and products. What kind of balance do you typically maintain in your checking account? Solving Customer Problems 1 Let the customer talk. We are the experts and you are nobody. Bundle up. Track cross-sales activity That can mean financial benefits, convenience features or any other advantages the customer gains by doing business with you. Of course, providing quality, relevant products and customer-centric service are always essential to keeping your customers happy. So, we constantly practice different customer conversations. You collect customer data for a reason: To understand your customers better, and then use that information to provide the most appropriate assistance, in the form of products, services and offers. “I think incentive plans are extremely important to excite people to go above and beyond just being an order taker,” says McDougald. 2. Explain your offering in a sentence. The cross-sell ratio goal is calculated on new customers during the first 90 days with the bank. CCG is a full-service financial marketing agency focused on providing actionable, knowledge-driven customer initiatives. We’re excited to share our five secrets for successfully selling products online. Seek out people with prior sales roles, or at least the right demeanor and skill set to become a good salesperson. The simple answer is retention: Focusing your efforts on sweetening the customer relationships you already have. SA Peters Marketing and Consulting Inc. “On the frontline, you want extroverts,” David says. Five ways to make cross-sell more effective It’s common knowledge that it’s easier and cheaper to sell to existing customers than to attract new ones. Do you write checks, or do you primarily use a debit card? Help customers get what they want, and your bottom line will take care of itself. Remember, however, that these messages must be personalized and highly targeted. We’ll start with a no-strings discussion of your situation and go from there. Email Best Practices Yield Higher Open Rates, Profits Client Sees Lift in Email Performance, Customers Using Newsletters To Build Customer Loyalty & Profits. Product owners can sell digital products such as computer software and EBooks, as well as physical products such as health products, food supplements, etc. Bank pushes out scheduled messages to recipients products are sold by displaying credibility and trustworthiness to the fundamentals every you... Droves — at rates as high as 50 percent within their first.! 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