Major consolidation will continue to be the norm in the banking industry over the next 18 months. In fact, next year is destined to be a major “shake out” year where weak banks will be acquired or closed—and banks that are in a position to capture the best customers in town will become stronger and more profitable.
With careful strategic planning, YOUR bank can become one of these stronger banks—more pro-active and more profitable than ever before.
Here are 10 proven strategies to create profit-rich growth:
1. Overhaul your strategy. Southwest Airlines has been a top-performing stock for the last 30 years. Southwest’s outstanding performance, despite huge losses by most other airlines, is proof that it doesn’t matter how badly things are going in the industry IF you have a winning strategy that separates you from the competition. Almost every bank has NO strategy in its strategic plan. You are at risk if you don’t move immediately from a tactical marketing position to a super strategic marketing mindset.
2. Package your products for “no-brainer” cross-sales. Bundle products and services to encourage buyers to start with six or seven of them at once. Make it a “no-brainer.” Give product bundles titles that tout their overt benefits. For example, a “Home At Last” package could come free with each mortgage and include a free order of checks, an insurance review and quotes, a debit card, and free bill pay—you get the idea. Make the package so irresistible that the customer can’t say no.
3. Make hay while the sun shines. Did you know that 73% of cross-sales happen in the first three months after a customer opens the initial account? It is absurd to not invest heavily in educating your people to cross-sell five to seven additional accounts and services when the first account is opened, or to not have a heavily scheduled follow-up plan for the first two months of that relationship.
4. Get out of the “rate quoting” business. If you’re spending money on marketing and your people respond to rate inquiries by quoting rates, take the day off to contemplate your sanity.
Pledge to educate your staff to answer the rate inquiry question with a response that breaks the caller’s preoccupation with rate, such as, “Are you looking for the best rate or the best value?
Because they’re usually not the same.” Teach your people to stop the shopping—it’s a game you can’t win.
5. Get more for less. Dramatically reduce turnover by 67%. How? Emotional intelligence testing has benchmarked a proven 67% decrease in turnover while dramatically increasing the results from those who are hired.
I have been successful in transforming the profitability of banks all over this country for over 25 years, and if these strategies are not implemented…forget about it!
Next week I will discuss the final five strategies needed to create profit-rich growth for your bank.