Sherri May & Co.

Simple steps to boost profitability (part 1)

Even in today’s culture, I’m surprised how often I hear that “Sales” is still a dirty word in the financial services world. Between the negative connotation of sales and sinking consumer trust, the proactive sales curve is trending backwards. Worse, many bankers continue to view the sales process as counter to good customer service. Back in the day when the sales culture was in its infancy, we spent a lot of time connecting these dots. Perhaps it’s time to start connecting again!

Banks large and small are feeling the pinch of the divested wallet. Turmoil in the marketplace has led to customers feeling more comfortable than ever to spread their financial stakes across multiple providers. Perhaps they financed their last home through a mortgage broker, have credit cards with American Express, a home equity line from a large bank in response to a direct mail piece, a brokerage account with TD Ameritrade and CDs with multiple local banks leaving only their checking and maybe short term savings with your bank. Knowing that share of wallet translates to loyalty, what’s a banker to do?

This is where sales comes in, and at the heart is superior, personal service from a trusted banker who lives and works in the local community. Too many banks make “Customer Service” their tag line or advertising pitch … customers however want action.

Helping branch staff reconnect the “Sales” and “Customer Service” dots is the necessary first step. Most will rise to the challenge provided they feel confident in their ability. So the key is to engage employees by providing the communication and training to build the comfort level needed to create this shift. An effective, low cost way to do this (without the need for consultants or increases in FTE) is to form an employee Sales & Service Committee. Choose individuals to be responsible for “service through sales” activities and give them responsibility for the following 5 steps:

1. Establish a commitment to customer service by implementing sales and service standards that every employee will follow at point of contact with the customer.
2. Identify skill gaps and solutions to overcome those gaps. Note that this needn’t require huge investments in training, simple mentor programs (pairing bankers with tellers) can be very effective.
3. Establish measurements for acceptable sales and service performance. These should not be overly aggressive at the beginning.
4. Create rewards and recognition for top performers. Again, it can be as low cost as an extended lunch hour, preferred parking, lunch with the branch manager … better yet, the branch manager could “chauffeur” the winner to work for a week!
5. Create accountability for those who consistently do not perform. The teeth are in the performance review.
Of course Leadership should be involved to set the strategy and provide support where needed.

In Part 2 we will explore specific actions the Sales & Service Committee can implement to get the ball rolling.

A recent topic of conversation here at SMCO has been about moving your comfort zone. Basically it means asking yourself, what are you doing to expand your skills and really contribute to your team? I knew I wanted to write about this topic, but it wasn’t until I watched the Phoenix Suns sweep the San Antonio Spurs in Game 4 of the Western Conference semifinals that I finally got the inspiration. Keep reading.

First of all, the Suns are a team that knows what it’s like to be an underdog. In fact, their last showing in the NBA finals came at a time when Michael Jordan was at the top of his game and yours truly was celebrating her 7th birthday—needless to say, it’s been a while. So what do we have now that gives us a chance to move on to the NBA Finals for the first time in 17 years? We’re now a team with depth that has successfully moved its comfort zone.

This can primarily be attributed to the Suns Coach Alvin Gentry. He has been praised all season for his unconventional practice of substituting his bench players at crucial moments during regular season games. These players might have struggled at first, but their confidence began to build knowing their coaches and teammates trusted them. Most coaches in the NBA will play the bench only when their team is winning by a certain differential. Unfortunately, this only breaks down a player’s self confidence, and when the starting line up gets injured, these bench players don’t have the skill or confidence to be able to step up.

What does this mean for you and your company?
It means you should start pushing yourself and those around you to expand comfort zones: this will be an individual and a team effort. Individually, set time-specific goals for yourself and see if you can reach them. Or if you’re a business owner or manager, try the Alvin Gentry style of management by giving your employees assignments they will have to rise up to accomplish. You must trust their judgment and skill and let them contribute on that next big project. But be forewarned, this tactic isn’t merely throwing your employees into the deep end to watch them flounder, you have to be ready to give support when it’s necessary.

Additionally, you have to be a strong leader. If you’re in need of inspiration, try taking after the Suns’ veteran point guard Steve Nash. Over the years, he’s been the epitome of a leader, and this role was recently showcased in Game 4 against the Spurs. After taking a hard blow to the eye from Tim Duncan’s elbow, he received temporary stitches, but still managed to lead his team with crucial assists and 3-point shots despite the fact his one eye was completely swollen shut.

In the end, it’s important to keep pushing yourself to expand your comfort zone and others to expand theirs. And when things get tough, remember you have to keep performing and giving your support to your team even if you have the urge to let up.

Make sure you watch Game 1 of the Western Conference Finals on Monday, May 17th at 6:00pm. Go Suns!