Te key to better results is aligning marketing and execution. As noted by high-performing banks, it’s about making an investment in growth to create a sustainable advantage that produces superior results. Aſter 35 plus years, here’s what we know.
PRODUCT — GET PRODUCT RIGHT. People hate fees. Compressed margins and decreased profitability can lead to the discussion of increasing monthly service fees or minimum balance requirements. Above is recent research on the criteria consumers use when selecting a primary financial institution. Compression in bank earnings will continue to have little impact on what consumers desire from their banking partner. Your retail and business product considerations must remain compelling if you want to have the greatest opportunity to grow core customers.
PROCESSES — REMOVE BARRIERS. Stop getting in your own way. We must be in compliance; however, over compliance creates barriers. Look at your customer identification program, as well as your retail and business account opening policies. Do they create barriers to growth? Is it easy for a consumer to open a retail or business account at your bank? Do you have restrictive scoring metrics that are actually costing you revenue opportunities?
PROMOTION — MARKETING TO GROW. Increase your spending on strategic marketing.
• Proactive — According to Novantas, 65% of consumers only consider two options when they decide to change primary financial institutions, meaning 65% of your current customers already know where they would bank if they didn’t bank with you. You must be top-of-mind before consumers and businesses know they want to switch. Your marketing must create the opportunity for them to pick you.
• Targeted — You need to use data and analytics to help you understand where to market before you market. Your marketing resources must be allocated to target consumers and businesses who haven’t chosen your bank yet but could and should.
• ROI Focused — You must define what and how you will measure success before you market, not aſter. Make sure your marketing investment is working to create tangible, measurable results.
• People — Invest in training your team. Too oſten, our industry treats training as an event rather than a way of life. Employees who do not understand your product will never be able to recognize opportunities with customers, let alone speak in terms of benefits rather than features. It is crucial your institution commits to regular training initiatives regarding your products and services. Ten once you have trained for everything, start over and do it again — knowledge leaks unless it is reinforced regularly.
Te actions of high-performing banks tell the story. Banks that invest in growth reap the greatest rewards. Although it may not be intuitive, make sure you have all of the right strategies in place to capitalize on the growth opportunities that present themselves in any environment.
sean@haberfeld.com
THE MISSOURI BANKER 25
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