We are very pleased that Guenther Hartfeil, formerly with BB&T and SNL Financial, has joined Peak Performance Consulting Group. He brings tremendous expertise to Peak’s clients as they grapple with more effective ways to improve revenue and efficiency.
Guenther has had leadership roles in utilizing business analytics and information management to drive improved business results. “Big Data is the catchword of the day, but it is really about making data better, more useful and helpful for decision making. And sometimes that means smaller and more effective data,” according to Guenther.
Most recently, Guenther was responsible for the householding and customer profitability calculations for the SNL Banker application, which was created primarily to serve community banks. Prior to that he was EVP, Client Insight and Innovation at BB&T, where he led the Branch Strategy, Contact Strategy, Market Research, Marketing Database and Innovation functions enterprise-wide. While there, he developed an innovative means to categorize BB&T’s 1,800 branches to help assure proper staffing and goal setting based on client and market opportunities and competition. This process identified an additional opportunity for $250 MM in annual revenue. Guenther also developed improved sales systems, “smart” sales reporting, customer profitability models as well as customer segmentation and retention programs.
David Kerstein, President of Peak Performance, said, “Peak’s goal is to help banks and credit unions craft and execute successful retail and community banking strategies. Guenther’s experience spans both large banks and community banks, and he knows how to deliver bottom line results for our clients.”
Guenther is located in Charlotte, NC and can be reached at email@example.com
I was reading the obituary of Paul Amos, who founded American Family Life Assurance Company with his brothers. You know the company – it’s the one with the talking duck who repeats the abbreviated name “Aflac.”
Here’s what struck me in the NY Times obituary:
While most insurers sold policies by knocking on doors, Paul had the company emphasize cluster selling and worksite marketing. Instead of making presentations to individuals, the company’s sales representatives often went to companies to make sales pitches to groups of employees. Today, most of Aflac’s United States policies are bought through payroll deductions.
Sounds like Bank at Work, or perhaps Insurance at Work. Aflac built a $121 billion company on this strategy.
We’ve been saying for a long time that Bank at Work can be a highly effective and efficient acquisition channel by reaching prospective customers at their workplace. And it’s a natural fit for banks that have commercial relationships with employers, or credit unions based on their historical SEG (Select Employer Group) heritage.
And to know more, reach out to Paul Corrigan who is one of the leading experts on Workplace Banking. He managed the very successful programs at Citibank and RBS Citizens, and has consulted with credit unions, community banks, and national banks in the United States, Canada, and around the world. His expertise with Workplace Banking initiatives covers the full range from strategy to execution and includes considerable experience in program implementation and channel management. Paul can be reached at firstname.lastname@example.org
Peak Performance Director Rick Carey will reprise his popular Retail Banking course at the 64th Annual Graduate School of Banking session July 13-25, 2014 on the beautiful campus of the University of Colorado Boulder.
In addition to clients in the United States, Ric has recently been working as the senior advisor to Ningbo Donghai Bank in Ningbo China where he is introducing a new Community Bank model. He also is on the faculty of the International Academy of Retail Banking where his teaching assignments include programs in Nigeria, Kenya, South Africa and Abu Dhabi, UAE.
Ric specializes in Consumer and Small Business Segmentation, Branch Design/Technology, Sales and Marketing programs as well as Service Quality initiatives. You can contact him at email@example.com.
This article was originally published in The Financial Brand on March 6, 2014 and was co-authored by David Kerstein, President of Peak Performance Consulting Group, and Nancy Radermecher, President of JohnRyan
Here’s how to make use of sophisticated branch data analysis in the creation of targeted marketing messages, and why this is important in adapting the branch for the future.
The Branch Transformation Imperative
Consumers are changing the way they bank. Research by the Philadelphia Federal Reserve Bank and others indicates check-writing activity has been declining at a rate of 5-7% annually, creating less demand for branch monetary transactions. Meanwhile, routine transactions that had been branch-centric are being disintermediated by the Internet, mobile and call centers.
According to a report by FMSI, branches process roughly half the transactions they did 20 years ago, with branch transaction volumes declining by 45.3% since 1992. This figure is likely to be considerably higher for banks that have aggressively implemented alternative channel delivery strategies.
Although consumers are using branches less, they still place a high value on bank branch convenience. Local branch presence is a primary reason consumers choose a bank, while customers consider easy access to branches and ATMs one of the features they value most.
Financial institutions face a basic conundrum: consumers want branches, but declining usage is reducing sales opportunities and revenue growth. As routine servicing and monetary transactions continue to migrate out of the retail branch, the fundamental nature of bank branches must undergo a dramatic transformation.
Branches will still be the primary vehicle for customer acquisition and consultative sales, but they must adapt to focus less on teller transactions and more on more complex advisory services. Successful financial institutions will implement more robust front line tools to enable staff to deliver better customer service, stronger profitable cross-sell, and achieve greater share of wallet.
The bottom line is that, with fewer teller transactions, branches must become more efficient as sales centers. This can be achieved through greater micro-market targeting of marketing messages in order to maximize the sales opportunity from limited branch traffic and to optimize trade area sales penetration.
Improve Revenue With Targeted Strategies
Up to now, many financial institutions have employed a one-size-fits-all strategy. Branches are often similar in size and style with limited differentiation. More importantly, marketing strategies are frequently implemented uniformly across the network with limited variation of messaging based on unique branch or trade area characteristics.
Usually, messaging is two-dimensional (for example, Spanish language signage in selected locations). But “best practice” institutions are improving revenue by tailoring messaging in a more efficient and impactful ways.
Moving forward, financial institutions need to adopt a more sophisticated “Rubik’s Cube” approach where messages are specific to the trade area market opportunity. This should form part of a comprehensive system that uses both market and internal data to create a sales and marketing protocols.
PNC has been piloting the Universal Banker concept at 45 of its mid-Atlantic branches, and recently announced that it is moving to full rollout, with 300 branches being converted in 2014 – the first step in planned conversion of two thirds of its more than 2,700 banking locations during the next five years.
A reprise of a guest post by Peak Performance affiliate Sandra (“Sam”) Black, an expert on call centers and telemarketing.
Your call center receives hundreds, perhaps thousands, of calls each day. But how many of those calls are converted into sales? Most incoming calls are service questions or simple product inquiries (What are your rates today?). Sales conversion rates for 1st call inquiries range from only 1% to industry leading 40%. What differentiates industry leaders? While some differences can be attributed to the cost and complexity of different products, the key variable is the skill of the inbound representative.
Why is so much business left on the table during the inbound call? Some organizations staff their inbound centers with order takers who do not have the skills to convert inquiries into appointments. That is an area that will have to change as organizations recognize that each and every inquiry, whether phone or email has the potential for conversion!
Those steps include technology, employee skill set, sales tools, and sales process. Here’s a short checklist: Continue reading