Wib.building client loyalty.march 21 2013.v14.printed version

MZ BIERLY CONSULTING

Building Client Loyalty and Increasing Wallet Share

Developing StrongBusiness Banking Relationships

March 2013Version 4

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We are assuming. . .

Your bank is active with the businesses in your community.

You have a team of Bankers who support the business owners in your community.

This is their story. . .

Your Commercial Banking Team.

Building Loyalty, Increasing Wallet Share

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Building “Strong” Commercial Banking Relationships has 3 Outcomes. . .

1.Building Sustainable Top-Line Growth

2.Building Sustainable Credit Quality

3.Building Sustainable Margins


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Keeping it simple. . .

1.Don’t lose your most profitable clients.

2.Lock down your “undersold” clients.

3.Acquire the prospects that build sustainable revenue (and a sustainable brand).

Undoable in today’s environment?


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As Simple as Possible. . .

1.Consistent Execution of a Client Experience

2.Consistent Execution is driven by the Leadership of the Executive Suite (not just CEO, the whole Executive Suite)

But, what are we Consistently Executing?

The Key Drivers

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High-Performing Bankers use 3 “strategies”

A Transaction Strategy (responding to an opportunity)

A Market Strategy (allocating their limited time to the “right” Clients, Prospects and COIs; proactively managing their time toward the best “lead sources”)

A Relationship Strategy (“strategically” developing their relationship with significant clients, prospects and COIs)

A Few Definitions

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1. An Articulated Market Development Process

2. An Articulated Relationship Development Process

3. Vertically Aligned Messaging of the Priorities (led by the Executive Suite)

4. Vertical Accountability for “Executing” the Articulated Processes (led by the Executive Suite)

5. Coaching Team Members on building strong business relationships (Focused by E-Suite)

This. . . is what we’re executing.

Building Loyalty andIncreasing Wallet Share (The Checklist)

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A Market Development Process focuses on 4 sets of Relationships.

Retention Relationships (the top 10% based on metrics)

Expansion Relationships (significant expansion opportunities within 18 months)

Acquisition Relationships (matches a credit and profit profile)

COI Relationships (the 3rd parties who already know those above)

1. A Defined Market Development Process

8Other examples and definitions are shown in your handouts


50% Reactive Transactions

50% Proactive Leads

50% Proactive Leads

It Balances the Proactive and Reactive Activity within Your Market.

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Lead Generation

Qualifying

ProposalInternal SaleExternal Sale

Closed Transaction

RelationshipBuilding

The Market Development Process. . .A Model for Market Focus


Sustainable growth in revenue is built with proactive relationship development.

Never lose a Retention Relationship.

Get in front of opportunities in Expansion Relationships.

Be consistent pursuing Acquisition Relationships.

Stay in front of the Right COIs.

2. A Defined Relationship Development Process

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Resources Most Often Relied on for Advice on Addressing Business Issues

ResourceBusinessBanking

CommercialBanking

Internal Management Team 66% 63%

Peer at Another Company 20% 23%

Outside Consultant 17% 22%

My Insurance Broker 11% 13%

Accountant 16% 11%

Commercial Banker 10% 4%

Lawyer 3% 3%

Investment Banker 2% 1%

Other 9% 6%

Where do You Stand?

Greenwich Market Pulse, July 2012 11


Business Acumen* is bringing Business Issue Insights and Unsolicited Financial Ideas to the table

A significant “differentiator” in a competitive marketplace

Highly effective in proactive situations

Product Acumen is important in reactive situations

Less of a differentiator in proactive situations

Building a “Different” Relationship

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What are Decision Makers Looking for?

1.It depends on what they “value”. Different Decision Makers value different “things”.

2.Value-added is not the value you want to add, it’s the value that the Decision Maker is looking for. . . the Decision Maker’s “value driver”.

3.Strong relationships are built when we understand and align with the value driver of a Decision Maker.

Building “Loyal and Deep” Relationships

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Building a “Default” Value Proposition

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22

11

33

44

55

Value Driver = What the Decision Maker is “looking for”


Shifting the Conversation. . . A “Business Acumen” Conversation

These conversation areas align with a Business Owner’s Business Issues, Business Objectives, Business Operations and Financial Management

Processes. These questions demonstrate Business Acumen!!

These conversation areas align with a Business Owner’s Business Issues, Business Objectives, Business Operations and Financial Management

Processes. These questions demonstrate Business Acumen!!

Use this Question Set to Demonstrate Business Acumen and Building

Relationship Momentum

Use this Question Set to Demonstrate Business Acumen and Building

Relationship Momentum

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Sustainability is “led” by Messaging the Priorities.

What are the most important things your Commercial Team does every week?

Reduce the messaging to no more than 5 priorities.

Re-establish the Priorities every week (from the CEO on down).

3. Vertically Aligned Messaging of the Priorities (led by the Executive Suite)

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Performance and “Motivational” sources

High-performers (top 10%), Intrinsic

The Core of Team (80%), Extrinsic

Low-performers (bottom 10%), Mis-Match

3. Vertically Aligned Messaging of the Priorities

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Extrinsic Motivation, Consistent Messaging

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Extrinsically motivated Bankers monitor their

environment for clues and cues to determine

what is acceptable behavior and

then respond accordingly.


Vertically Aligned Messaging of the Priorities

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1. Prioritizing the Messages Have you prioritized the messages?

Are you staying on the prioritized messages?

2. Adjusting the Behaviors Have you assessed the skill sets?

Have you built a coaching plan?

Are you “formally” coaching?

3. Adjusting the Infrastructure Does it support the messaging you’re delivering?

Does it support the behaviors you want?


4. Vertical Accountability for “Executing” the Articulated Processes Every Week(led by the Executive Suite)

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Consistent Execution means continually prioritizing the Messages. . .

Monday Morning Sales Meetings


5. Coaching Team Members on Building Strong Business Relationships

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Continually “growing” the right Behaviors

Scheduled, Bi-Weekly, One-on-One Coaching


An Articulated Market Development Process

An Articulated Relationship Development Process

Vertically Aligned Messaging of the Priorities (led by the Executive Suite)

Vertical Accountability for “Executing” the Articulated Processes (led by the Executive Suite)

Coaching Team Members on building strong business relationships (focused by the E-Suite)

This. . . is what we’re leading.

Building Loyalty, Increasing Wallet Share(The Checklist)

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The 5 Key Drivers

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This. . . is what we’re leading.

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Wib.building client loyalty.march 21 2013.v14.printed version

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