Get Members to Spread the Word

CU360
December 3, 2007 | COMMENTS

An old adage says that customers who have a bad experience will tell 10 friends about it, while those who have a good experience will tell only one. But this wisdom might lead some financial organizations astray. In retail financial services, most institutions focus on avoiding the bad customer experience, but only a few have gone on to launch a campaign to improve customer experience.

Institutions have a better chance of winning the game if they take the good customer experience to a higher level, according to ABA Bank Marketing. Success lies in creating an experience so outstanding that customers or members tell 10 or more friends about it.

Historically, "sales" has been a four-letter word in financial services. But creating a great experience for consumers depends on consultative selling by highly trained, empathetic representatives, not pushy ones that mistake coercion sales for solution-oriented sales.

As critical as training is, setting a good example with internal selling from the top down is also important. Is the financial institution providing good role models to employees who are expected to sell?

Ten Steps to a Powerful Experience

As competition heats up in financial services, institutions will fall behind if they stick to a "this is how it has always been" approach. Below are 10 simple steps that make a huge difference in the customer experience.

1. Sell solutions, not products. Selling doesn't turn off consumers - not selling does. Why? People want solutions -products and services that can make their lives easier. But when front-line staff robotically present a line of products like commodities, the message is: "All financial products and services are the same - just pick one." Consumers feel slighted by institutions that don't know them, don't know what they need, and don't know how to address their needs.

2. Know the client. Before opening an account, find out about the applicant, and then recommend the appropriate solution. Ask questions such as: Where do you currently bank? What do you like and dislike about that institution? If I gave you a magic wand that could create the perfect financial relationship, what would it look like?

3. Be passionate, not just pleasant. Being pleasant is a given. Be passionate about finding the perfect solution. Recognize the phone as a critical but greatly underused delivery channel. After identifying themselves, the first question service representatives need to ask is, "Is this a good time for you?" This question alone creates a difference that impresses clients. Also ask how much time they currently have and share with them how long the conversation might take, or reschedule if necessary.

4. Ask, "How can we make your job or life easier?" Be empathetic and hear what customers are saying. Helping to solve a problem is often quite easy. If a caller needs health insurance, why not say: "We don't offer health insurance, but I can refer you to a life insurance provider who also handles health insurance."

5. Create a comfortable environment. Many institutions put out coffee and cookies, and some have even entered into relationships with coffee shops to offer financial services right inside the cafes. Others have tellers who walk around, greet customers as they enter, and complete transactions without the need for lines. Think outside the box, and make the branch more than just a destination.

6. Cross-sell (build the relationship) to increase loyalty. Loyalty increases with the number of products per household and the effectiveness of the solutions presented. But if consumers don't know about your other services, they'll look to competitors to provide them. Think long term and focus on the relationship, not the quick hit.

7. Go beyond solving problems - become proactive and anticipate them. Rather than focusing on new and potential members, increase loyalty by building relationships. Time invested leads to referrals and new business. Members might want quick teller lines and streamlined procedures, but they also want a financial adviser rather than an anonymous banker. Offering great service has the potential to go beyond individual clients to succeeding generations.

8. Do the unexpected. Send handwritten notes or birthday cards. Remember the details of previous conversations. When a member's child is about to finish high school, send a note or call to offer help with a car loan or checking for the college-bound graduate. Learn from other retail establishments.

9. Be persistent. In an environment that monitors financial performance quarterly, few organizations are patient enough to wait for the rewards of relationship building. Take the time to see a training program through, and don't stop a successful program after a year believing that the new behaviors are now ingrained. Training is a journey, not a destination.

10. Monitor and measure performance. Monitoring performance is critical to the effectiveness of any program. Top-performing institutions participate in industry studies to regularly benchmark themselves against competitors. Measure where you are at any time and be able to change quickly if necessary.

Don't overlook mystery shopping to obtain an unbiased opinion of member satisfaction. In person or by phone, the objective is to determine the level of satisfaction with staff professionalism, courtesy, and sales skills. The information is tabulated and branch managers are given reports to follow up with the individuals involved. Measuring performance leads to enhanced results from staff as they know they are being measured. Such programs can become a positive, competitive force between branches.