Tips from

a FRUSTRATED

Bank Shopper

“Nothing kills a bad product faster than good advertising.”���

~ David Ogilvy

The Facts

•  8.7% of consumers said that they switched their PFI in the last year (up from 7.7%) •  Shoppers consider 1.9 institutions (up from 1.6) •  Most common reason to switch: Life Circumstances •  Only 43% of consumers who purchased an additional banking product did so with their PFI

Source: J.D. Powers & Associates

Today’s Conversation

Shops What to measure How

What We’ve Seen The Good, The Bad & The Ugly

Tips Best Practices Tools

Case Studies

Image Compare to retail examples

What is Most Important to Members

u  Locations/Access u  Pricing u  Product Suite u  Market Presence

Tangibles

u  Perception/Image u  Expertise u  Trust u  Satisfaction u  MEMBER EXPERIENCE!!!

Intangibles

Shopping

34

The Experience

INSTITUTION EXPERIENCE METER (SCALE 1-10)

SERVICE SALES OVERALL

Branch

Image Greeting

Eye Contact

/ Courtesy Qualifying

Product

Presentation Cross Sell Close

Would You

Buy?

Shoppers enter branches as if they are unhappy with their current bank and are shopping for a new checking account. The shopper simply asked for information on the institution’s checking accounts and lets the sales representative react.

The Process

Scoring

Client Location Did employee identify themselves and establish rapport? Yes No Did employee demonstrate product knowledge? Yes No Did employee attempt to qualify? Yes No Did employee explain benefits? Yes No Did employee ask to open account/set appt? Yes No Were you quickly attended to? Yes No Were you given opportunity to ask questions? Yes No Was the employee listen/responding to needs? Yes No   Notes: •  Greeted quickly by a receptionist who entered our name and need into a computer •  Waited in waiting area for about 5 minutes •  MSR introduced herself and shook hands – walked us to desk •  No qualifying questions asked •  Explained all checking options (even Second Chance) •  Negative feel to conversation with “We run ChexSystems,” and “If you qualify” •  Also seemed to take all options out of the conversation with, “We’ll tell you what account you qualify for.” •  Provided personal experience sell with “Our online banking is really easy to use.” •  No close •  Provided business card for follow-up

Notes

Client Scores

INSTITUTION EXPERIENCE METER (SCALE 1-10)

SERVICE SALES OVERALL

Branch

Image Greeting

Eye Contact

/ Courtesy Qualifying

Product

Presentation Cross Sell Close

Would You

Buy?

10 7 7 1 4 1 5 6

Competition Average Scores

INSTITUTION EXPERIENCE METER (SCALE 1-10)

SERVICE SALES OVERALL

Branch

Image Greeting

Eye Contact

/ Courtesy Qualifying

Product

Presentation Cross Sell Close

Would You

Buy?

6.3 2.5 2.5 1.0 2.3 0.3 1.0 2.5

Compare

The Ugly The Brochure Handoff

The Bad The Crutch

The Good Question … Recommend …

Experiences

A Few Tips

A Few Tips

1. Get ‘em talking

o  Ask basic questions •  About their family •  About their work •  Where they bank now •  Why change •  How they plan to use the account

A Few Tips

2. Listen before you talk

o  It’s not a test!

A Few Tips

3. They came here for a reason

o  They drove to your branch for a reason.

o  Ask to open the account!

A Few Tips

4. Don’t give up

o  Your brochures are not THAT dazzling!

A Few Tips

5. Personal Experience

1.  Personal product use “I love our online banking … it’s soooo easy!”

2.  Personal experience “Congratulations on your new baby! When my first child was born…”

3.  Case history “I had a member who went through that once … here’s how we helped…”

The 4 Step Close

Step 1 Ask to open the account today

Step 2 If they cannot, ask to get the process started, then make an appointment for them to come back

Step 3 Be proactive! Ask for the member’s phone number and a best time to call them

Step 4 Provide a business card and the days/hours you typically are at the branch

Best of the Best A clear member interaction process must be trained, encouraged, measured and evaluated: 1.  All staff introduce themselves and ask for member name

•  Shake hands and use member name wherever appropriate

2.  All staff ask basic leading questions to identify need and financial goals. These will include information on product as well as personal questions.

3.  When MSR (or other) staff is needed, teller should escort member (when reasonable) and make formal introduction •  When not available, show member to waiting area and

assure them that they will be helped shortly •  Offer drink

Best of the Best 4. MSR asks key questions to determine member need

•  Repeat need as they understand it •  Translate financial need into relevant product •  Inform member on how product will benefit the

member (not list features) •  Identify other products that may aid access or

relate to member’s needs 5. Close sale – ask to open account today 6. Determine other needs – verify needs have been met 7. Provide valuable information for new products:

•  Demo Online Banking •  Provide ATM/Location map, circle locations that are

most convenient for member

Best of the Best

8. Provide contact information for future questions 9. Walk member to door

•  Assure waiting members that you will be right with them and thank them for their patience

10. Shake hands, thank member, tell them that they are appreciated 11. Follow-up with hand written note or phone call

Facilitate

Meaningful

Conversation

Life Stages

A CASE STUDY

Set Standards

Take a Genuine Interest

CONTACT INFORMATION:

Phone number:

( ) _______- ___________

Best way to Contact:

Home Work Cell Email

Best time to call:

_______________________

Okay to leave message?

YES_____ NO_____

Customer Email Address:

_______________________

Employee Name:

_______________________

Referred to:

_______________________

_______________________

Date: ______/______/______

After account opening,

contact new customer with:

!Immediate thank you card

Completed: _____/_____/_____

!2 week follow-up call

______/______/______

!2 month follow-up call

______/______/______

!6 month follow-up call

______/______/______

!1 year anniversary call

______/______/______

CUSTOMER NAME(S) ______________________________________________________________________

GETTING TO KNOW YOU

FINANCIALSNAPSHOT

RELATIONSHIP BUILDER

Tell me about your family. What do you do for a living? What are your passions/hobbies?

Where do you currently bank?

__________________________________

__________________________________

__________________________________

What accounts do you have?

__________________________________

__________________________________

__________________________________

What do you like about them?

__________________________________

__________________________________

__________________________________

Is there anything you dislike?

__________________________________

__________________________________

__________________________________

Do you have other deposits, CDs or investments with any other banks,

credit unions, or brokerage firms?

__________________________________

__________________________________

Do you own your own home or

have a mortgage loan?

__________________________________

__________________________________

What!s your current mortgage rate?

__________________________________

__________________________________

What are your financial goals for

this year?

__________________________________

__________________________________

Do you have any immediate needs

to borrow money?

__________________________________

__________________________________

Do you plan to buy, build, or remodel your home in the next 6 - 12 months?

YES NO

Do you plan to make any other majorpurchases such as a car, boat or RV?

YES NO

PRODUCTS NEEDED

CHECKING

SAVINGS

DEBIT CARD

CREDIT CARD

OVERDRAFTPROTECTION

MORTGAGE

HOME EQUITY

OTHER LOAN

INVESTMENTS

INSURANCE

TRUST

PRODUCTS SOLD

STAFF CHECKLISTFOR STAFF USE ONLY:

NEW

ONLINE BANKING

CDs/IRAs

EXISTING

BILL PAY

ESTATEMENTS

CHECKING

SAVINGS

DEBIT CARD

CREDIT CARD

OVERDRAFTPROTECTION

MORTGAGE

HOME EQUITY

OTHER LOAN

INVESTMENTS

INSURANCE

TRUST

ONLINE BANKING

CDs/IRAs

BILL PAY

ESTATEMENTS

Consultative Selling

Results

u  Understanding the bank needs & situation u  Understanding the market u  Understanding the competition u  Analyzing product suite u  Analyzing sales process u  Mutually setting standards u  Consistent training & coaching u  Providing the right tools

Attrition Dropped from ���31.74% to 17.67% in one year!

In the end … it’s all image!

“I might have to make a visit to Uncle Dave,” which is what people in Ouray say

when they need to take a loan from the local bank, Citizen’s State, whose

chairman is named David Wood.

Twilight of a Mountain God, January, 2009 Runner’s World Magazine

How Do You Get An “Uncle Dave?” •  Have the right “Uncle Dave” – someone who can represent the credit union well and “own the role” •  Be the first to market – it won’t do to be the second “Uncle Dave” in the market •  Be consistent – “Uncle Dave” is THE community banker

Be Like A Running Store

Become A Specialist •  Know Their Run – Do your members need a one-time “quick fix” like a home improvement loan or are they in it for the financial marathon? Keep a member log. •  Size ‘em Up – Like each shoe fits each runner differently, so does each financial product. Instead of analyzing their gait and feet, ask them basic questions about how they will use the product and their goals. •  Be Their Coach – You and your staff are the experts! Coach your members and they will entrust more to you.

Sum it Up

•  Know thy self •  Compare yourself to the competition •  Show you care, ask questions •  ABC – Always Be Closing •  Treat ‘em like a guest in your home •  Be the expert

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www.WeKnowCreditUnions.com

Eric Gagliano Senior Vice President

(937) 426-9848

egagliano@MarketMatch.com

www.WeKnowCreditUnions.com

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