Welcome to the Top 5 Percenter™ Blog

Are you tired of accepting or being bound by limiting beliefs?  

 

Today, we’re going to blow up the biggest limiting belief in banking. It’s so bad that it keeps you and your team from attracting the very best credits and commanding extreme premium pricing.

If you’re the kind of leader that has a team that already gets premium pricing and attracts the best credits, you’re gonna love this because I’ll show you how you can get even more and get them faster.  

Or maybe you have a group of lenders who just came back from a conference with a strong belief that higher pricing happens only for weaker credits. I’ll show you how to flip that belief and get the best credits in your market while getting 100,150, or even 200 basis points above market. Yes, it’s very possible if you do what I’ll show you.

Or maybe you personally believe the conventional wisdom that higher pricing is only for weaker credits, and you learned that in the Graduate School of Banking, so it must be true. It’s not your fault, it is true, but it is equally true that you can get extreme premium pricing from the very best credits, and that is a far better game to play. Let me show you how.

There are a few challenges of course in getting the best credits to pull away from the current bank and pay you 100 plus basis points more while they do that.  

First, you must get your team to challenge the mountain of evidence that they have telling them that good credits will never pay anything but the lowest price because your competitors will CUT and CUT and CUT to get the business. It’s just not true.

Second, you must decide to be worth more. Saying we’ve got great people or we turn around your loan fast, do not create enough differentiation to get that premium pricing.  

Third, you have to turn the entire ship. Belief systems, differentiation and sales processes must all change together or it will remain a pipe dream instead of an ongoing reality where you always get paid more while attracting the best quality loans.  

Let’s discuss three steps to help you get serious traction on pulling in better prospects and premium pricing in a few short weeks.

Unlike how most marketing is done in banking today, you need to target the precious few. A recent study showed that the average community bank’s top 100 customers account for more than 50% of their profits. In some cases, between 50 to 140%. The fastest path to more profits is obvious. Find another 100 just like your current top 100. You’ll double your profits without adding people or infrastructure.

The first step is to figure out who those customers are.

Next, figure out the similarities, specifically the psychographics and demographics they have in common. Psychographics are things about the ways that they’re thinking such as Active American Farm Bureau members who are second generation with the first generation still involved. Firmographics are like demographics for businesses. An example is medical device manufacturers with over $30 million in revenue.

Finally, unlike most marketing and sales approaches normalized in banking today, you have to figure out how to get prospects to pay attention to you. In fact, fall in love with you before you contact them. When you start the conversation, you want them to see that meeting with you is an honor, not another inconvenient meeting with a vendor. You don’t want brand awareness; you want brand insistence.  

Again, three steps: 

First, find out who your current most profitable customers are.
Two, determine the intersection of psychographic and firmographic similarities.
And then three, create a system to build reputational equity.

Don’t miss the next video where we’ll cover how to build differentiation that gets the attention of A+ quality prospects to help you win more and better business fast. 

To your continued success, 

Roxanne Emmerich 

Please watch the video above and share it with your exec team and board. 

 

 

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