Building Momentum with Small Businesses
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Building Momentum with Small Businesses Building Momentum with Small Businesses Presentation Transcript

  • MZ BIERLY CONSULTINGBuilding Momentumwith Small BusinessesStrategies for Acquiring and RetainingBusiness ClientsNed MillerMZ BIERLY CONSULTING, INC.610-296-4772nmiller@mzbierlyconsulting.comwww.mzbierlyconsulting.com
  • MZ BIERLY CONSULTINGNoticeThis publication is protected by copyright. It is licensed for a single user. It islicensed for internal use only.Copyright © 2008 – 2013 MZ BIERLY CONSULTING, INC.ALL RIGHTS RESERVED2
  • MZ BIERLY CONSULTING It’s a changing environment – and it’s the right time to focus on theSmall Business Market. Recent Research on what Small Business Owners want from theirSmall Business Bankers. 4 Key Initiatives for Banks Interested in building sustainable resultsin the Small Business Market. Resources/tools to help. Q&A (as time permits).Our Discussion Today3
  • MZ BIERLY CONSULTING The “trust issue” that was part of the recession has many smallbusiness owners “looking around” for a “relationship” they can trust. Business owners are pessimistic about future operatingenvironment. Everybody is trying to get in the small business lending game. Approval rates are inching up. Larger banks are hiring small business bankers; banks of all sizesare pushing branch managers out of the branch trying to get morefeet on the street.The Big Picture4
  • MZ BIERLY CONSULTINGPrimary Bank Satisfaction Declined at Medium Banks5© 2013 All RightsReserved.74%69%71%73% 73%75%72% 73%58%61%65% 64%67%65%67%64%50%48%49%51% 50% 49%44%46%40%45%50%55%60%65%70%75%80%2005 2006 2007 2008 2009 2010 2011 2012Note: Bank trending data is representative of bank organization in 4Q2012.%VerySatisfiedSmall Banks(Assets<$1B)Medium Banks(Assets $1B-$50B)Large Banks(Assets>$50B)Medium banks had a decline in delight from the prior year and are now at 64%.Small Business Trailing 4 Quarter Data$100K-<$10MMQ: Overall, how satisfied are you with your company’s primary bank?
  • MZ BIERLY CONSULTINGProspecting Model: The Satisfaction Curve6All Relationships go throughperiods of Satisfaction andDissatisfaction.
  • MZ BIERLY CONSULTINGProspecting Model: The Satisfaction Curve7“RQS” Shoppers makechanges in bankingrelationships at the bottomof the curve.RQS = Relationship, Quality or Service Shoppers
  • MZ BIERLY CONSULTINGLarge Banks Score 11% or More Below Medium Banks840%41%29%22%29% 24%0%10%20%30%40%%AgreeStronglyThe gap between large and small banks is widest on the attitudes: will stand by us in toughtimes, effectively meets our credit needs and has competitively priced service charges.$100K-<$10MM90% Q: Please indicate how strongly you agree or disagree with each statement. My primarybank…79%74%65%76% 73%78%62%57%62%52%70%66% 64% 65%44% 44%50%53% 51%47%54%50%60%70%80%Small Banks(Assets<$1B)MediumBanks (Assets$1B-$50B)Large Banks(Assets>$50B)+4%+5%+3%1Q2012-4Q2012Small Business Rolling 4 Quarter Data= arrows denote change since previous year-6%+6%+5%+5%+5%+9%-5%Is responsive Is easy to do Appreciates Gets things Is financially Effectively Will stand by Has Hasto requests or business with our business right the first stable meets credit us in tough competitively competitivequestions time needs times priced servicechargesrates and feeson loans
  • MZ BIERLY CONSULTINGMarket Research9
  • MZ BIERLY CONSULTING Who is your toughest competition today in the small businessmarket? Why?Quick Question10
  • MZ BIERLY CONSULTINGBig Banks?11“We are competing on price. It’sa function of the market. If thereis a client we want, we will becompetitive on price.”Ergetu Merete, Business BankingDivision Manager for Philadelphia AreaBusiness Journal, September 2012
  • MZ BIERLY CONSULTINGIndependent Banks?12
  • MZ BIERLY CONSULTING• Teaneck, N.J.s Cross River Bank, which holds $199 million inassets, is responding to pressure to gain business customers bygoing door-to-door, pitching 0 percent loans to dry cleaners, spas,and medical offices in the city. Cross River Bank Chairman andinterim CEO Gilles Gade says the program, which has about $1million to lend initially, is primarily meant to shore up goodwill in thecommunity and net more long-term business customers. The bankhas so far written about 20 one-year loans for amounts ranging from$5,000 to $20,000, Gade says.From "N.J. Bank Hits the Streets With Door-to-Door Lending Campaign"American Banker (08/09/12)Idiot or Genius?13
  • MZ BIERLY CONSULTINGEach banker has a Default Value Proposition1. Low-Price/Low-Structure Provider “Tell me what you have at your current bank . . . we’ll beat it.”2. Service “We’ll be accessible and responsive. You’ll think you’re my onlyclient.”3. Business Acumen (Business Experience and Expertise) “I’ll understand your business, help you anticipate your needs,and help you navigate through increasingly complex financialchoices. . . better than any other banker.”Values and Value Propositions14
  • MZ BIERLY CONSULTINGThis study correlates skills with“Customer Satisfaction” and withthe likelihood a Business Ownerwould refer you to otherBusiness Owners.Data from the Enterprise Council on Small BusinessBusiness Owners and Business Acumen15
  • MZ BIERLY CONSULTINGThe Key Skillsfrom the Study.Data from the Enterprise Council on Small BusinessBusiness Owners and Business Acumen16
  • MZ BIERLY CONSULTINGThe Questionsthat drive resultsand satisfaction.Data from the Enterprise Council on Small BusinessBusiness Owners and Business Acumen17
  • MZ BIERLY CONSULTINGThe KeyQuestions thatdrive satisfaction.Data from the Enterprise Council on Small BusinessBusiness Owners and Business Acumen18
  • MZ BIERLY CONSULTINGData Courtesy of the Enterprise Council on Small BusinessRelationshipDevelopmentStrategies thatdrive satisfaction.Business Owners and Business Acumen19
  • MZ BIERLY CONSULTINGLevel of Relationship is Based on Value Drivers20 Not all Decision Makers want the same level of relationship with an RM. Adding Value is based on matching the value driver of a Decision Maker.Value Drivers. . . What the Decision Maker is looking for51234
  • MZ BIERLY CONSULTINGWhat Does it Take: BuildingRelationship Management Skills21Reacting to Opportunities Developing New OpportunitiesStage 1 Stage 2 Stage 3 Stage 4Stance: Waiting for opportunitiesStance: Proactively seeking opportunitiespart of the timeStance: Seeking qualified opportunitiesregularlyStance: Actively building market share, walletshare and developing opportunitiesMethods: Walk-ins Irregular lead generation Referrals from a few long-timeclients or “well-worn” referralsources Lead generation is largely reactive Product-focused client discussionsMethods: Some referrals from clients Generating leads from any andall businesses Identifying and building newreferral sources Focuses at Controller or VPFinance Level Focuses on “financial issues” Sees role as sole “executor” ofrelationshipMethods: Focused and proactive leadgeneration Effective use of testimonialreferral sources Focuses at “C-Suite” level, buildsstrategic relationships Sees role as “strategist” Effectively uses Bank’s SeniorManagement to buildrelationshipsMethods: Actively cultivating referral networkand systematically using it Actively working the best clients andprospects Always seeking new “niche”opportunities Consistently uses Experience andExpertise as a Value Proposition Highly effective at adjusting leadsources and a building brandCharacteristics: Infrequent calling Little planning or structure torelationship management process Works “whatever is in front of me” Focuses on credit/product strategyfirst then “sales” strategy Value proposition centers aroundprice/structure or “client service”Characteristics: Meets target level of calls, butlittle focus or preparation “I’ll take whatever I can get”orientation Selling 1 product category at atime, leads with loans Identification of opportunitiesoften limited to 1-year time frame Inconsistent results and“cycling” pipelineCharacteristics: Stays focused on targeted lists Persistent, never gives up Comfortable at all levels of the C-Suite A focus on depth of relationship Consistently identifiesopportunities (short-term, mid-term, long-term, explicit andimplied) Consistently generates resultsCharacteristics: Always aware of new opportunities Always thinking one year ahead An articulated plan for consistentlydeveloping new opportunities Long-term, expertise-basedrelationshipsCharacterized by Product Acumen andStrategizing Transactions
  • MZ BIERLY CONSULTINGWhat Does it Take: BuildingRelationship Management Skills22Reacting to Opportunities Developing New OpportunitiesStage 1 Stage 2 Stage 3 Stage 4Stance: Waiting for opportunitiesStance: Proactively seeking opportunitiespart of the timeStance: Seeking qualified opportunitiesregularlyStance: Actively building market share, walletshare and developing opportunitiesMethods: Walk-ins Irregular lead generation Referrals from a few long-timeclients or “well-worn” referralsources Lead generation is largely reactive Product-focused client discussionsMethods: Some referrals from clients Generating leads from any andall businesses Identifying and building newreferral sources Focuses at Controller or VPFinance Level Focuses on “financial issues” Sees role as sole “executor” ofrelationshipMethods: Focused and proactive leadgeneration Effective use of testimonialreferral sources Focuses at “C-Suite” level, buildsstrategic relationships Sees role as “strategist” Effectively uses Bank’s SeniorManagement to buildrelationshipsMethods: Actively cultivating referral networkand systematically using it Actively working the best clients andprospects Always seeking new “niche”opportunities Consistently uses Experience andExpertise as a Value Proposition Highly effective at adjusting leadsources and a building brandCharacteristics: Infrequent calling Little planning or structure torelationship management process Works “whatever is in front of me” Focuses on credit/product strategyfirst then “sales” strategy Value proposition centers aroundprice/structure or “client service”Characteristics: Meets target level of calls, butlittle focus or preparation “I’ll take whatever I can get”orientation Selling 1 product category at atime, leads with loans Identification of opportunitiesoften limited to 1-year time frame Inconsistent results and“cycling” pipelineCharacteristics: Stays focused on targeted lists Persistent, never gives up Comfortable at all levels of the C-Suite A focus on depth of relationship Consistently identifiesopportunities (short-term, mid-term, long-term, explicit andimplied) Consistently generates resultsCharacteristics: Always aware of new opportunities Always thinking one year ahead An articulated plan for consistentlydeveloping new opportunities Long-term, expertise-basedrelationshipsCharacterized by Business Acumenand Strategizing Relationships
  • MZ BIERLY CONSULTING What percentage of your Small Business Lenders are in eachstage? What percentage of your Branch Managers are in each stage? Do your Sales Managers have the coaching skills, tools andtechniques to get their teams to the next level?Quick Reality Check23
  • MZ BIERLY CONSULTINGManaging Market and Relationship Strategies24
  • MZ BIERLY CONSULTINGManaging Market and Relationship Strategies25Three Sources ofBusiness. . .Three Steps:Identify, Plan, ExecuteMarket Management ProcessRelationship Building ProcessFace-to-Face Meeting Process
  • MZ BIERLY CONSULTINGAre You Taking Care of Your Customers?26
  • MZ BIERLY CONSULTINGAdding Value Adds Revenue and Adds Loyalty27Company Decision MakersDDA/Treasury Management Personal DDA/Private BankingWorking Capital, Acquisition Financing InvestmentsEquipment Loans/Leases Jumbo MortgageCommercial Mortgage HELOCEmployee Banking Life InsuranceInvestments Retirement Planning/Retirement Plan401(k) Estate PlanningLiability InsuranceKey Man Insurance, Buy/Sell AgreementTotal: 9 Total: 7Business Services: 20-years, $3,500,000 in sales
  • MZ BIERLY CONSULTING1Q2011-4Q2011TotalPrimary Bank SizeLarge Banks(Assets >$50B)Medium Banks(Assets $1B-$50B)Small Banks(Assets <$1B)Product Usage at Any InstitutionTotal Products Used 7.2 7.2 6.9 7.3Cash Management and Deposit Services 4.8 4.7 4.6 4.8Credit Services 1.2 1.0 1.3 1.6Other Services 1.2 1.4 1.1 0.9Penetration RatioTotal Products Used 79% 77% 76% 84%Cash Management and Deposit Services 83% 83% 81% 90%Credit Services 76% 70% 69% 80%Other Services 64% 67% 57% 60%Small Business Rolling 4 Quarter DataQ: Please indicate which of the following products and services your company currentlyuses at your primary bank and which are used at another bank.7-3$100K-<$10MMPrimary Bank has over 75% of Products Used28
  • MZ BIERLY CONSULTINGThe Market Management Model: It Starts with Leads29Lead GenerationQualifyingProposalInternal SaleExternal SaleClosedTransactionBuild Long-TermRelationshipClosed Business OutOpportunities In
  • MZ BIERLY CONSULTINGThe Market Management Model30Lead GenerationQualifyingProposalInternal SaleExternal SaleClosedTransactionBuild Long-TermRelationshipComes out the bottom.What went in the top…To change the quantity orquality of what comes out thebottom. . . Change what goesin the top.
  • MZ BIERLY CONSULTING1. A Relationship Development Meeting is a face-to-face meeting thatfocuses on two things: Identifying and developing the Business Owner’s tangible needsand intangible needs. Matching your solutions to the developed and agreed-uponneeds.2. A Marketing Call (or Marketing Touch) is an interaction that keepsthe bank or banker “top-of-mind” with the client/prospect. An “overview” of Business Owner’s possible needs. An overview of “what we do”. “If we can help. . . Let me know.”Relationship Development Meetings vs. MarketingCalls31
  • MZ BIERLY CONSULTING What percentage of your team’s calls are MarketingCalls? What do you have to do to increase the percentage ofRelationship Development Calls?Reality Check32
  • MZ BIERLY CONSULTINGDemonstrating Business Acumen doesn’thappen in 1 or even 2 Meetings.Building these Relationships require a seriesof Relationship Management Meetings thatbuild momentum. . . and loyalty.And, requires the interpersonal andcommunication skills to “connect the dots”during the business conversation. . . theconnected dots that build clearly defined nextsteps in advancing relationship.Changing the Conversation to “Business Acumen”33Each Relationship ManagementMeeting is a StructuredCommunication Process
  • MZ BIERLY CONSULTINGChanging the Conversation to “Business Acumen”34Step 2 is the most important step foraligning with the Key DecisionMaker’s Business Strategy,Business Plan, BusinessObjectives, Business Operationsand Business ManagementProcesses.2
  • MZ BIERLY CONSULTINGChanging the Conversation to “Business Acumen”351. Where are you banking?2. What products are you using?3. How are they priced and structured?4. What 2 things do you wish your bankwas doing but they’re not?5. Can I have a copy of yourstatements to put together an offer ofhow we would handle yourrelationship?Where are the Business Issues here?These questions focus on products;comparing your products with acompetitor’s. These questions demonstrateproduct acumen!!Look at these Questions. . .2
  • MZ BIERLY CONSULTINGChanging the Conversation to “Business Acumen”36These questions align with a Key Decision Maker’sBusiness Plan, Business Strategy, BusinessObjectives, Business Operations and BusinessManagement Processes. These questions demonstrateBusiness Acumen!!Use this Question Set to Demonstrate BusinessAcumen and Build Relationship Momentum2
  • MZ BIERLY CONSULTING1. Keys to successaffect current and futuredecisions.3. Industry trends, businesschanges in next 3 years.2. Industry trends affecting thebusiness today.4. Current and futurechanges force changes incurrent and future businessoperations.5. Current and futurechanges in businessoperations force changesin current and futurefinancial operations.6. Changing financialoperations create changes inthe financial needs and thenan evaluation of the solutionscurrently in place.“Think Like the Business Owner”37
  • MZ BIERLY CONSULTINGBUILD A TARGET PROFILEKey Initiative #138
  • MZ BIERLY CONSULTINGHigh Appeal Industries Limited Appeal Industries Manufacturers  Real Estate Investment Wholesalers  Low-End Retail Distributors  Restaurants Architect, Engineering and Business ServiceFirms Mini-Warehouses/Carwashes Law Practices  Landscaping Accounting Firms  Service or Gas Stations Insurance Brokers or Firms  Used Car Dealerships Large General Contractors Medical, Dental and Health PracticesDefine Your Core Relationship Profile39
  • MZ BIERLY CONSULTINGBusiness Characteristics In business over 3 years Sales revenue between $500,000 and $2,500,000 Employing more than 5 people Location within footprint Privately held with experienced management team Borrowing needs under $500,000 Profitable (Net Profit After Tax) for the last year Leverage (Debt-to-Worth) less than 3 to 1 Deposit balances average more than $25,000 Using or needing 5 or more business banking/consumer banking product categoriesDefine Your Core Relationship Profile40
  • MZ BIERLY CONSULTINGRetention Relationships are clients who meet these criteria: Have good credit quality,and are In top 10% of aggregate loans and deposit balances, Your Bank has >60% of the loans and deposits of the business.Expansion Relationships are clients who meet these criteria: Have good credit quality and match the Core Relationship Profile,and are Your Bank has less than <60% of the loans and deposits of the business,and have Significant cross-sell/up-sell opportunities in next 18 months.Segment Your Business Customer Relationships41
  • MZ BIERLY CONSULTING Define the annual activity for Retention, Expansion and ProspectRelationships. Target 5 calls per week [60% of the calls to be proactive]. Target the right mix of pre-scheduled appointments:• % with Retention, Expansion and Acquisition Relationships• % of joint calls• % of calls with referral sources or others in networkBe Clear About Call Activity/Call Mix42
  • MZ BIERLY CONSULTINGSTRENGTHENEXPANSION RELATIONSHIPSKey Initiative #243
  • MZ BIERLY CONSULTINGRelationship Expansion Process Initiatives44These are the 7 Elements inthat drive a RelationshipExpansion Process.These are the processelements that drive BankerSuccess in the building aBrand. . . and is the result ofconsistent execution.
  • MZ BIERLY CONSULTINGExpansion Relationships45Determine possible opportunities.Use a Relationship Profiling Modelto Identify and Follow-up onopportunities to strengthenExpansion Relationships.
  • MZ BIERLY CONSULTING Build a Client Folder with:• Industry Trends and Data (VerticaIQ/FirstResearch/eMentor/IBISWorld)• Trade association data on the industry• The company’s web site• News articles on the Business and Business Owner• Bank-specific information about the industry (e.g. Sample callplan templates, case studies, product brochures, etc.)Identify the Opportunities for Expansion46
  • MZ BIERLY CONSULTINGACQUIRENEW RELATIONSHIPSKey Initiative #347
  • MZ BIERLY CONSULTING Overemphasizing prospecting. . . “Don’t forget your Key and High PotentialClients.” Not providing direction on which prospects to target. . . “Build a list of theprospects you want to do business with.” Not coaching bankers on how to leverage their network (and that includessenior management, directors, etc.). . . “Use client referrals and testimonialsto get appointments.” Not having a process for generating leads. . . “Coach the top of the funnel.” The Super-Rep Syndrome. . . “Teach them all to fish.” Not understanding your bankers’ default value propositions . . . “Coach tothe value proposition that you believe in.” Defining success too narrowly. . . “Celebrate the small victories.”7 Mistakes Sales Leaders Make48
  • MZ BIERLY CONSULTING Not having a “Vetted” Prospect List. . . “Build a list of the Businesses youwant to do business with.” Not using their network. . . “Using client referrals and testimonials to getappointments.” Not having a defined strategy. . . “Building relationships based on ValueAdded.” Planning one meeting at a time. . . “Always plan 2 calls at a time, gin up theinterest in the next meeting before you leave their office.” Not preparing “cognitively”. . . “Being prepared is a huge differentiator andadds value.” Using the wrong question set. . . “Use questions that add value.” Selling to the first need. . . “It takes multiple needs to build enoughmomentum to overcome inertia.”7 Mistakes Bankers Make in Prospecting49
  • MZ BIERLY CONSULTING6 Steps for Building New Relationships501. Build a Vetted Prospect List2. Select the first 5 Prospects youwant to focus on3. Build a Relationship Strategy,Plan the first 3 Meetings for theselected Prospects4. Use a Testimonial Referral toGet the 1st Appointment5. Debrief the 1st Meeting, adjustthe Plan for the 2nd and 3rdMeeting. Keep a focus on whatis changing (not “optimized”)6. Deliver 1 or more “OptimizedSolutions” in the 3rd Meeting
  • MZ BIERLY CONSULTING “Its Marketings job to provide us leads.” “Get me a better list.”• A list of businesses that want to change banks now!• “The list isn’t perfect. . . there are dead people on here!” Focus on former customers from “my old bank”. Each Banker builds his own prospect list.• Not sharing it with other team members for feedback. Rely on a single source for prospect names. “I have an amazing mind, I can keep it all in my head.”Bad “Best Practices” for Building Prospect Lists51
  • MZ BIERLY CONSULTINGWhat is a “Vetted” Prospect List?52
  • MZ BIERLY CONSULTING D&B Strategic Marketing Database or Zapdata.com (Hoovers Lead Builder) ReferenceUSA Local Industrial Development Authority (electronic version) UCC Filings (there are compilation services) Local Business Publication directories (not always a good choice, toovisible) Guidestar.org (a great source for 501C3s) Trade Association Memberships or Websites (a few examples)• American Society of Association Executives (www.asaenet.org/find/)• American Dental Association directory (www.ada.org)• American Institute of Architects directory (www.AIA.org)• State and local trade association listingsUse Multiple Sources for Your Prospect List53
  • MZ BIERLY CONSULTINGRecent studies in the banking industry show that Business Owners aremore than willing to help you. . . 66% of Business Owners are willing to provide referrals to Bankers.But to get the referral you will have to ask; most Bankers don’t ask. Only 22% of small-to-medium-size Business Owners have beenasked for a referral in the past 24 months. Only 37% of Middle Market Decision Makers have been asked for areferral in the past 24 months.Is a Consistent Flow of Referrals a Possibility?54
  • MZ BIERLY CONSULTINGSmall Banks’ Ratings on Willingness to Refer Have Improved,While Medium Bank’s Ratings Declined5567% 66% 68%72% 71%71%63%70%47%60%56%59%64%61%63% 57%43%40%41% 41% 41% 40%35% 36%75%70%65%60%55%50%45%40%35%30% 2005 2006 2007 2008 2009 2010 2011 2012Note: Bank trending data is representative of bank organization in 4Q2012.Small Business Trailing 4 Quarter Data%AgreeStronglySmall Banks(Assets<$1B)Medium Banks(Assets $1B-$50B)Large Banks(Assets>$50B)Small banks have improved on willingness to refer and are currently at 70% agreestrongly, while medium banks dropped to 57%.$100K-<$10MMQ: Please indicate how strongly you agree or disagree with each statement. I wouldrefer a company with similar needs to my primary bank.
  • MZ BIERLY CONSULTINGWhy do Business Owners provide referrals? They may like to help other business people. They may want to be “heroes” to their friends and business partners. They understand that it’s the best way to grow business for themand for you. They may see referrals as a way to “pay you back”.The Whys of Referrals56
  • MZ BIERLY CONSULTINGWhy don’t Bankers ask for referrals? The quality of referrals isn’t always the best. They don’t want to “harass” good clients. They’re not sure whom to ask; they’re not sure when to ask. They don’t have a process for asking!The Whys of Referrals57
  • MZ BIERLY CONSULTINGWhy don’t Bankers ask for referrals? The quality of referrals isn’t always the best. They don’t want to “harass” good clients. They’re not sure whom to ask; they’re not sure when to ask. They don’t have a process for asking!http://www.mzbierlyconsulting.com/how-to-ask-customers-for-quality-referralsThe Whys of Referrals58
  • MZ BIERLY CONSULTING1. Wait and See: “If I continually provide outstanding service. . . whenthey hear of an opportunity they’ll give me a call.”2. Let them know I’d like a referral: “Jack, if you think of anyone whowould be a good a match for me and the Bank I’d love to talk withthem. Let me know if you think of anyone.”3. Proactively ask for an Introduction: “Jack, there are a severalpeople in the area I’m trying to meet. I was hoping I could run theirnames by you. . .”Asking for ReferralsThere are multiple ways to build a Network Referral Process. . . butone works better than the others. Here are the three most prevalent:59
  • MZ BIERLY CONSULTING Industry information Financial information Website Call planning templates Simplified relationship plans Cash cycle maps LinkedInUse tools that make you look good60
  • MZ BIERLY CONSULTINGThese are your Meeting Objectives for the Business Operations Meeting:1. Demonstrate your knowledge and understanding of some of the key issues in the industry sector of thebusiness.2. Understand the keys to success used to build the business.3. Understand the current [1-year] business objectives of the business.4. Understand the future [3-year] business objectives.5. Understand the day-to-day business operations of the business.6. Understand how his business objectives and business operations will change over the next year, the next3 years.7. Identify three needs, short-term, mid-term or long-term; summarize and then prioritize the needs; use thetop prioritized need to get the next appointment.8. As a part of the next meeting, frame a Financial Operations Discussion (with key parties) to review thecurrent cash-cycle and potentially to offer ideas for optimizing collections, disbursements and workingcapital management.First Call Objectives — Use a Template61
  • MZ BIERLY CONSULTINGCall Plan Templates62
  • MZ BIERLY CONSULTINGCOACHING THESMALL BUSINESS INITIATIVEKey Initiative #463
  • MZ BIERLY CONSULTINGReacting to Opportunities Developing New OpportunitiesStage 1 Stage 2 Stage 3 Stage 4Stance: Waiting for opportunities to comeinStance: Proactively seeking opportunitiespart of the timeStance: Seeking qualified opportunitiesregularlyStance: Actively building market share,wallet share and developingopportunitiesMethods: Walk-ins Irregular lead generation Referrals from a few long-timecustomers or “well-worn” referralsources Lead generation is largelyreactive Product-focused clientdiscussionsMethods: Some referrals from customers Generating leads from any and allbusinesses Identifying and building newreferral sources Focuses at the Business/OfficeManager Level Focuses primarily on productissuesMethods: Focused and proactive leadgeneration Effective use of testimonial referralsources Focuses at Business Owner level,builds Level 3 or 4 relationships Has effective Market andRelationship Strategies Effectively uses Business Partnersto build relationshipsMethods: Actively building a referralnetwork and effectively using it Actively working the best clientsand prospects Actively building niches Consistently uses BusinessAcumen as a Value Proposition Highly effective at adjusting leadsources and building a brandCharacteristics: Infrequent calling, little planningor structure to calling effort Works “whatever is in front of me”focus Focuses on credit/productstrategy first then “sales” strategy Value proposition centers aroundprice/structure or “customerservice”Characteristics: Meets target level of calls, butlittle focus or preparation “I’ll take whatever I can get”orientation Selling 1 product category at atime, leads “scorecard” product Identification of opportunitieslimited to 1-year time frame inconsistent results and“cycling” pipelineCharacteristics: Stays focused on targeted lists Persistent, never gives up A focus on depth of relationship Completely comfortable withBusiness Operations and FinancialOperations Conversations Consistently identifies opportunities(short-term, mid-term, long-term) Consistently generates resultsCharacteristics: Always aware of newopportunities Always thinking one year ahead An articulated plan forconsistently developing newopportunities Long-term, expertise-basedrelationshipsDirection: Build the ActivityGuidance: Build the QualitySupport: Remove the BarriersCoaching the Stages. . . Bi-Weekly64
  • MZ BIERLY CONSULTINGThe “End State” of Stage 1 is learning to Connect with the Business Owner.The Banker is ready for Stage 2 Coaching when she consistently demonstratesthese skills: Comfortable on the Business Owner’s “turf”. Confident talking about business operations [not just products] with theBusiness Owner. Convinced he has “something of value” [beyond just products]. Assertive enough to “lead” the meeting with the Business Owner.These skills typically require 75 to 125 calls to learn—for more insights go to:http://www.mzbierlyconsulting.com/small-business-strategy-coaching-branch-managersCoaching Stage 1 (to Stage 2)65
  • MZ BIERLY CONSULTING Keep the Banker Targeted. Build and “Vet” a list of 35 to 50 Businesses(the Targeted Business List). Use these lists to build the Targeted BusinessList: the Banker’s current Retention, Expansion and Other Lists. Begin to “encourage” planning. Ask the Banker to build a Client Folderfor each Relationship before contacting the Business Owner [they probablywon’t, it’s OK for now]. Ask the Banker to review the Client Folder and to use one of the QuickReference Guides for each call [they probably won’t, it’s OK for now].Coaching Stage 1 (to Stage 2)66
  • MZ BIERLY CONSULTINGIn each bi-weekly coaching session, debrief 2 or 3 meetings the Banker had inthe last 2 weeks. Debrief the meetings by asking all of these questions, in thissequence: “How did the meeting go?” “Did you find any opportunities during the meeting?” “What did you learn about the industry that this business operates in?” “What did you learn about the Business Owner’s business objectives today,over the next year, over the next 3 years?” “What did you learn about the day-to-day business operations of thisbusiness?” “What did you learn about the Business Owner and what he/she “values”? “How did the Business Owner describe the value proposition he uses in hisbusiness?”Coaching Stage 1 (to Stage 2)67
  • MZ BIERLY CONSULTING Re-Establish the “Priorities” every Monday Morning. Use Monday Morning Sales Meetings to continually re-establish the priorityof “meeting with” and “learning about” the targeted businesses. A conference call is OK. The Small Business segment of your sales meeting should not exceed 30minutes. The “accountability” topics for Stage 1 Team Members are these. Ask eachStage 1 Team Member 2 of these 3 questions (ask the Stage 2 TeamMembers their questions, not these):• “What targeted businesses are you calling on this week?”• “Pick 1 targeted business you met with last week, what did you learnabout the business and its operations?”• “Are you finding any opportunities in your meetings with the businesseson your targeted lists?”Coaching Stage 1 (to Stage 2)68
  • MZ BIERLY CONSULTINGQuestions?69
  • MZ BIERLY CONSULTING“When all is said and done, more is said than done.”Lou Holtz70
  • MZ BIERLY CONSULTINGVisit Our Website71After the conference take a few minutes toexplore our website. . .And register for our email newsletters and blog.Each month you’ll get suggestions, tips, andhow-to’s to fine-tune your sales and salesleadership processes.Find out about our archived webinars on salesand sales leadership topics.To find out more about our resources for smallbusiness banking teams go towww.mzbierlyconsulting.com or call Ned Millerat (610) 296-4772 or email him atnmiller@mzbierlyconsulting.comBonus offer: Article on “How to Improve theROI on Training Branch Managers” athttp://www.mzbierlyconsulting.com/a-winning-strategy/