MZ BIERLY CONSULTING
Building Client Loyalty and Increasing Wallet Share
Developing StrongBusiness Banking Relationships
March 2013Version 4
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MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
Building “Strong” Commercial Banking Relationships has 3 Outcomes. . .
1.Building Sustainable Top-Line Growth
2.Building Sustainable Credit Quality
3.Building Sustainable Margins
Building Loyalty, Increasing Wallet Share
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MZ BIERLY CONSULTING
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?
Building Loyalty, Increasing Wallet Share
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MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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
MZ BIERLY CONSULTING
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
MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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
MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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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Value Driver = What the Decision Maker is “looking for”
MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
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.
MZ BIERLY CONSULTING
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?
MZ BIERLY CONSULTING
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
MZ BIERLY CONSULTING
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
MZ BIERLY CONSULTING
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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MZ BIERLY CONSULTING
The 5 Key Drivers
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This. . . is what we’re leading.