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Sales Management

business woman in warehouseThe numbers are clear; Branch usage is declining. Fact is transactions conducted in bank branches is  dropping 5-6% per year due to direct deposit, debit, electronic bill pay and other check displacement. For example, with more and more of their customers shifting to digital, JPMChase has seen the blend of deposit transactions move from 90% teller / 10% ATM in 2007 to 42% Teller / 48% ATM / 10% mobile in 2014. A seismic change in just 7 years. The bottom line impact for Chase and everyone else is shrinking branch traffic leaves fewer sales opportunities: New accounts opened per branch FTE have declined 23% since 1997*.

 

At the same time, traditional media and direct response is becoming less efficient as a means of acquiring and converting prospects. In this environment, Workplace Banking can be a highly effective and efficient acquisition channel by reaching prospective customers at their workplace.

 

The sales recipe is timely: Workplace Banking puts bankers in front of prospects and customers they no longer see in branch with opportunity to sell, service, advise, and generate incremental revenue. The model elements are simple; marketing to employees where they congregate (at the worksite), where there’s a commonality (they work for the same firm), and where there’s an endorsement (from their employer), that the program is special. The result is a cost efficient sales and servicing model that builds an acquisition annuity stream: As company hires new employees, the bank has opportunity to acquire new customers.

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As consumers and small businesses shift to alternative channels, it is critical that financial institutions improve the operational and sales efficiency of the brick and mortar channel. That means fine tuning every point of contact to optimize effectiveness.

 

Financial institutions of all sizes are facing challenges to their retail branch system. j0177737Technological innovation, starting with the introduction of ATMs, then internet banking, and most recently mobile banking, has resulted in declining branch usage. Consumers and businesses don’t need to go to the bank as frequently as they did in the past now that routine monetary and service transactions can be easily handled on a personal computer or smartphone.

 

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.

 

The bottom line is that, with fewer teller transactions, branches must become more efficient as sales and marketing 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.

 

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.

Improve Revenue with Targeted Strategies

 

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This article, by Peak Performance Consulting Group senior consultant Guenther Hartfeil, was originally published in BAI Banking Strategies on November 10, 2014

 

Even simple segmentation approaches can yield substantial results if implemented with disciplined execution.

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We live in an age of “big data” but sometimes this amounts to data overload. What we really need is more usable data that can translate into better customer service, improved sales, and greater profitability. One very effective way to organize data is to group customers or prospects into segments.

 

The old saying “birds of a feather flock together” is a simple way of describing the dynamic that people tend to group together with those of like interests and similar behaviors. Segmentation is just a way to find people (or businesses) with common behaviors so that marketers and salespeople can then approach each segment in an appropriate manner. These different approaches may show up in product design, media used, pricing or distribution design.

 

Bankers can gain tremendous benefits from even simple segmentation schemes that can help answer questions such as: How much time should be spent with a customer or prospect? How should the customer or prospect be contacted? And, when contacted, what should be communicated?

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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.

 

But before you charge headlong into this program, read our articles and presentations: Ten Myths about Workplace Banking, Keys to a Successful Workplace Banking Program, and Banking on Bank at Work.

 

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 paul.corrigan@ppcgroup.com

 

 

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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.

 

Banks can achieve significant benefits from implementing Universal Bankers including higher sales, lower costs, and improved customer satisfaction. But implementation requires more than just a recruiting and training program, but an overall strategy around facilities, technology, marketing, sales management, measurement, rewards, and recognition.
Ric Carey, who has had extensive experience implementing and managing Universal Associate programs, explains in this short webinar.

 

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Paul Corrigan is a Senior Consultant at Peak Performance Consulting Group. He is a leading expert on Workplace Banking (Bank at Work programs). Specifically, he was responsible for the development and management of both Citibank at Work and RBS Citizens’ YourPlace Banking. His experience covers the full range from strategy to execution and includes considerable experience in program implementation and channel management.

 

This article was originally published in BAI Banking Strategies on April 4, 2014

 

BY: PAUL CORRIGAN

 

Financial institutions are facing declining branch transactions and diminished branch sales. As a result, more banks are looking to Workplace Banking as an effective channel for attracting new customers, expanding relationships with existing customers and therefore improving sales productivity and cost efficiency. After all, Workplace Banking puts branch teams in front of prospects and customers they no longer see in the branch.

 

If implemented effectively, Workplace Banking can be a significant incremental source of revenue, representing between 10% and 30% of total new customer relationships according to our analysis of over 20 Workplace Banking programs. The problem is that while many banks offer Bank-at-Work programs, comparatively few provide the structure needed to optimize long term profitability. Here’s a look at some myths about Workplace Banking and some suggestions of why your bank may not be getting the most out of these programs and how you can rectify that:

 

Myth #1. Workplace Banking drives low balance, low quality customer relationships.

 

Reality: Workplace Banking provides higher account quality than the bank average if the program structure includes focused company targeting. Although company targeting is the number one determinant of new account quality, many banks fail to put a disciplined process in place. Without this structure, local managers will often call on the easiest targets of opportunity, such as retail and hospitality, resulting in low balance and high turnover accounts. Conversely, employees working in professional services, academic, medical and technology fields will provide the bank with profitable, long lasting relationships. Additionally, branch teams will also meet current bank customers at their worksite and have the opportunity to cross-sell and deepen relationships.

 

Top Tip: Successful programs include a company approval and registration process to insure targeting strategy is maintained and fail-safed.

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