Marketing isn’t what it used to be. For many banks, it’s changing how you should be investing your marketing dollars and the strategies that you should be using. (more…)
And hear your customers say, “I Don’t Want To Work With Any Bank But You.”
If you don’t care about bank premium pricing, you can stop listening right now.
This is for bank executives who want to figure out how to command premium pricing despite the too-common assumption that banking is a commodity. Therefore, they cannot command premium pricing—or, at best, maybe 25 basis points more on the loan side.
Here’s The Problem
Any bank that can only command 25 basis points of premium pricing will probably not have its name on the front door five years from now.
When I first left day-to-day banking to start this business, my first client was voted every year as the country’s top franchise.
Although I did their management development curriculum and educated their people about how to run that business, one of the things that I’m sure is true is that I learned more from them than they learned from me. I learned the concept of franchise thinking.
How do you do AB split testing to find out the best way to do things?
What’s the best way to hire a lender?
What is the best way to identify your next best customers?
A dear friend asked me a question one time, “oh really, can you afford not to?” and I thought that was one of the most brilliant questions I’ve ever heard.
Let me pose it to you this way.
Can you afford not to figure out how to increase your net interest margin by 100 basis points while bringing down your cost of funds and bringing up the quality of the loans you’re making?
Everyone has patterns of disbelief.
Some people believe that in politics, there is one side or the other, and they’re unwilling to look at the alternative. Still others believe that the moon is made of cheese.
You may have a belief system that’s true. You may have a belief system that’s not true. And the question that we have to look at as executive is, “what has to be true for us to challenge what we believe to be true?”
You see, there are many beliefs within our industry right now,
If you don’t care about premium pricing, you can stop listening right now. This is for bank executives who want to figure out how to command premium pricing despite the too-common assumption that banking is a commodity. Therefore, they cannot command premium pricing—or, at best, maybe 25 basis points more on the loan side.
Terry Slattery, the Legend of IBM, the person who brought in more business for IBM than anyone has before or since, has been a dear friend and partner of mine for almost two decades now, helping our banks figure out how to grow their revenue streams.
Terry recently said he has never seen a harder sales environment in his career across every industry.
How much do you invest in your marketing budget every year? Now divide that amount by the number of calls or inquiries it generates.
For most banks, the marketing budget is driven by shiny new ideas from conferences that marketing people attend or based on what was done the year before.