Building B2B Client Loyalty and Increasing Wallet Share

1,079 views
913 views

Published on

Slides from a recent Western Independent Banker presentation from Buck Bierly.

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,079
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
53
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Building B2B Client Loyalty and Increasing Wallet Share

  1. 1. Audio-Visual Sponsored by: B ildi g B2B Cli tBuilding B2B Client Loyalty and IncreasingLoyalty and Increasing Wallet ShareWallet Share Buck Bierly, President & Founder, Bierly Consulting 2013 Annual Conference for Bank Presidents, Senior Officers & Directors Waves of Change. Oceans of Opportunity.
  2. 2. Building Client Loyalty and I i W ll t ShIncreasing Wallet Share Developing Strong Business Banking Relationshipsg p MZ BIERLY CONSULTING March 2013 Version 4 2
  3. 3. We are assuming Building Loyalty, Increasing Wallet Share We are assuming. . . Your bank is active with the businesses in youry community. Y h t f B k h t thYou have a team of Bankers who support the business owners in your community. This is their story. . . Your Commercial Banking Team. MZ BIERLY CONSULTING g 3
  4. 4. Building “Strong” Commercial Banking Building Loyalty, Increasing Wallet Share Building Strong Commercial Banking Relationships has 3 Outcomes. . . 1. Building Sustainable Top-Line Growth 2. Building Sustainable Credit Quality 3 Building Sustainable Margins3. Building Sustainable Margins MZ BIERLY CONSULTING4
  5. 5. Keeping it simple Building Loyalty, Increasing Wallet Share Keeping it simple. . . 1. Don’t lose your most profitable clients.y p 2. Lock down your “undersold” clients. 3. Acquire the prospects that build sustainable revenue (and a sustainable brand). Undoable in today’s environment? MZ BIERLY CONSULTING5
  6. 6. As Simple as Possible The Key Drivers As Simple as Possible. . . 1. Consistent Execution of a Client Experience 2. Consistent Execution is driven by the Leadership of the Executive Suite (not justLeadership of the Executive Suite (not just CEO, the whole Executive Suite) But, what are we Consistently Executing? MZ BIERLY CONSULTING6
  7. 7. Hi h P f i B k 3 “ i ” A Few Definitions High-Performing Bankers use 3 “strategies” A Transaction Strategy (responding to an opportunity)A Transaction Strategy (responding to an opportunity) A Market Strategy (allocating their limited time to the “ i ht” Cli t P t d COI ti l“right” Clients, Prospects and COIs; proactively managing their time toward the best “lead sources”) A Relationship Strategy (“strategically” developing their relationship with significant clients, prospects and COIs) MZ BIERLY CONSULTING COIs) 7
  8. 8. Building Loyalty and 1. An Articulated Market Development Process Increasing Wallet Share (The Checklist) p 2. An Articulated Relationship Development Process 3 V ti ll Ali d M i f th P i iti (l d b3. Vertically Aligned Messaging of the Priorities (led by the Executive Suite) 4 V ti l A t bilit f “E ti ” th A ti l t d4. Vertical Accountability for “Executing” the Articulated Processes (led by the Executive Suite) 5 C hi T M b b ildi t b i5. Coaching Team Members on building strong business relationships (Focused by E-Suite) Thi i h t ’ ti MZ BIERLY CONSULTING This. . . is what we’re executing. 8
  9. 9. 1 A Defined Market Development Process A Market Development Process focuses on 4 sets of 1. A Defined Market Development Process p Relationships. Retention Relationships (the top 10% based on metrics) Expansion Relationships (significant expansion opportunities within 18 months)opportunities within 18 months) Acquisition Relationships (matches a credit and profit profile)profile) COI Relationships (the 3rd parties who already know those above) MZ BIERLY CONSULTING ) 9 Other examples and definitions are shown in your handouts
  10. 10. The Market Development Process. . . f 50% Reactive 50% Proactive A Model for Market Focus Transactions Leads It Balances the Proactive and Reactive Activity within Your MarketYour Market. MZ BIERLY CONSULTING10
  11. 11. 2 A D fi d R l ti hi D l t P Sustainable growth in revenue is built with 2. A Defined Relationship Development Process g proactive relationship development. Never lose a Retention RelationshipNever lose a Retention Relationship. Get in front of opportunities in Expansion RelationshipsRelationships. Be consistent pursuing Acquisition Relationships. Stay in front of the Right COIs. MZ BIERLY CONSULTING y g 11
  12. 12. Resources Most Often Relied on for Advice on Addressing Business Issues B i C i l Where do You Stand? Resource Business Banking Commercial Banking Internal Management Team 66% 63% P t A th C 20% 23%Peer at Another Company 20% 23% Outside Consultant 17% 22% My Insurance Broker 11% 13%y Accountant 16% 11% Commercial Banker 10% 4% Lawyer 3% 3% Investment Banker 2% 1% Other 9% 6% MZ BIERLY CONSULTING Other 9% 6% Greenwich Market Pulse, July 2012 12
  13. 13. Business Acumen* is bringing Business Issue Building a “Different” Relationship Business Acumen is bringing Business Issue Insights and Unsolicited Financial Ideas to the table A significant “differentiator” in a competitiveA significant differentiator in a competitive marketplace Highly effective in proactive situations Product Acumen is important in reactive situations Less of a differentiator in proactive situations MZ BIERLY CONSULTING13
  14. 14. What are Decision Makers Looking for? Building “Loyal and Deep” Relationships g 1. It depends on what they “value”. Different Decision Makers value different “things”.Makers value different things . 2. Value-added is not the value you want to add, it’s the value that the Decision Maker is looking for thevalue that the Decision Maker is looking for. . . the Decision Maker’s “value driver”. 3 Strong relationships are built when we understand and3. Strong relationships are built when we understand and align with the value driver of a Decision Maker. MZ BIERLY CONSULTING14
  15. 15. Building a “Default” Value PropositionBuilding a Default Value Proposition Value Driver = What the Decision Maker is “looking for” 5 4 3 2 MZ BIERLY CONSULTING15 1
  16. 16. Shifting the Conversation A “BusinessShifting the Conversation. . . A Business Acumen” Conversation Use this Question Set to Demonstrate Business Acumen and Building Relationship Momentum 2 These conversation areas align with a Business Owner’s Business Issues, Business Objectives, Business Operations and Financial Management Processes. These questions demonstrate Business MZ BIERLY CONSULTING q Acumen!! 16
  17. 17. 3 Vertically Aligned Messaging of the Priorities Sustainability is “led” by Messaging the Priorities 3. Vertically Aligned Messaging of the Priorities (led by the Executive Suite) Sustainability is led by Messaging the Priorities. What are the most important things your Commercial Team does every week? Reduce the messaging to no more than 5Reduce the messaging to no more than 5 priorities. R t bli h th P i iti k (fRe-establish the Priorities every week (from the CEO on down). MZ BIERLY CONSULTING17
  18. 18. 3. Vertically Aligned Messaging of the Priorities Performance and “Motivational” sources High performers (top 10%) IntrinsicHigh-performers (top 10%), Intrinsic The Core of Team (80%), Extrinsic( ), Low-performers (bottom 10%), Mis-Match MZ BIERLY CONSULTING18
  19. 19. Extrinsic Motivation, Consistent Messaging Extrinsically motivated Bankers monitor their environment for clues and cues to determine what is acceptable behavior and then respond accordingly.p g y MZ BIERLY CONSULTING19
  20. 20. Vertically Aligned Messaging of the PrioritiesVertically Aligned Messaging of the Priorities 1. Prioritizing the Messages Have you prioritized the messages? Are you staying on the prioritized messages? 2. Adjusting the Behaviors Have you assessed the skill sets? Have you built a coaching plan? Are you “formally” coaching? 3. Adjusting the Infrastructure Does it support the messaging you’re delivering? D it t th b h i t? MZ BIERLY CONSULTING20 Does it support the behaviors you want?
  21. 21. 4 Vertical Accountability for “Executing” the4. Vertical Accountability for Executing the Articulated Processes Every Week (led by the Executive Suite)( y ) Consistent Execution means continuallyCo s ste t ecut o ea s co t ua y prioritizing the Messages. . . Monday Morning Sales Meetings MZ BIERLY CONSULTING21
  22. 22. 5 C hi T M b B ildi St5. Coaching Team Members on Building Strong Business Relationships Continually “growing” the right BehaviorsCo t ua y g o g t e g t e a o s Scheduled, Bi-Weekly, One-on-One, y, Coaching MZ BIERLY CONSULTING22
  23. 23. Building Loyalty Increasing Wallet Share A A ti l t d M k t D l t P Building Loyalty, Increasing Wallet Share (The Checklist) An Articulated Market Development Process An Articulated Relationship Development Process Vertically Aligned Messaging of the Priorities (led by the Executive Suite) Vertical Accountability for “Executing” the Articulated Processes (led by the Executive Suite) Coaching Team Members on building strong business relationships (focused by the E-Suite) MZ BIERLY CONSULTING This. . . is what we’re leading. 23
  24. 24. The 5 Key DriversThe 5 Key Drivers This. . . is what we’re leading. MZ BIERLY CONSULTING24

×