COVID-19, PPP loans allowed community banks to prove to both new and existing small business customers that you can be relied on.
SMALL BUSINESS GROWTH As PPP Round 2 availability dwindles, or in many cases is exhausted, what’s next? Small business growth is trending optimistically, with 41% of small business owners expecting to grow their revenue in 2021 and 37% considering expanding products and services. Community banks have a timely opportunity to build strong, long-lasting relationships with small businesses in the communities they serve. Te time is now to position yourself as their financial institution for all their business needs beyond PPP.
ENGAGE BUSINESS ACCOUNT HOLDERS Community banks have a unique opportunity to increase their engagement with PPP loan account holders to further expand these relationships. Here are six key strategies to boost communication touchpoints.
• Onboarding — Communicate with account holders within three days of opening a new account. According to J.D. Power research, doing so has a significant impact on satisfaction. Onboarding business relationships is just as important as any new consumer relationships. Any new business relationships gained through PPP loan efforts should receive the full welcome experience into your bank. A simple phone call, email or letter can leave a lasting impression.
• Personalization — Leverage the information attained through the PPP loan process. Make offers specific to those that were existing account holders versus those who are brand new account holders. Use language specifically tailored to businesses with a professional tone rather than re-using general account holder language.
• Nurture the Relationship — Schedule phone calls for relationship bankers to follow up and personally connect with PPP loan account holders.
• Multichannel Integration — Use email, postcards, letters, surveys and phone calls to stay engaged and top of mind with your small business account holders. Don’t be afraid to “over-communicate” — small businesses owners have limited time but want to stay in the know and appreciate the information. Ensure messages are received by communicating several times using multiple mediums.
• Business Financial Needs Assessment — Take into account the specific needs of the business you are engaging: Did they receive all the funds requested? More loan funds might be needed. Consider surveying PPP relationships for what’s needed next.
• Expand the Relationship — Incentivize business accounts to expand the products and services they have with the bank. Cross-selling to your current business relationships is shown to produce positive ROI. With our Core iQ soſtware, we have seen customers implement our automated cross-sell framework that has proven effective in expanding relationships. As you begin to cross-sell to new PPP loan relationships, promoting business checking accounts with a 90-day tracking window is recommended to allow business accounts time to convert.
Onovative, an automated marketing and communication software provider, marketing software for planning, automation and execution empowers banks to manage data for strategizing throughout the consumer lifecycle that integrates directly with your existing core banking systems, Onovative helps banks drive results by bolstering growth with their current account holders and within their markets. Visit
onovativebanking.com to learn more. Onovative is an MBA associate member.
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Send achievements, news and announcements to Lori Bruce, MBA communications director, at lbruce@mobankers. com for posssible inclusion in the next issue of The Missouri Banker.
THE MISSOURI BANKER 23
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