NYBA Getting in the Door with Prospects

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Recent presentation from the New York Bankers Association on Getting in the Door with Prospects

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NYBA Getting in the Door with Prospects

  1. 1. MZ BIERLY CONSULTINGGetting in the Doorwith ProspectsNed MillerMZ BIERLY CONSULTING, INC.610-296-4772nmiller@mzbierlyconsulting.comwww.mzbierlyconsulting.com
  2. 2. 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
  3. 3. MZ BIERLY CONSULTING1. Sources of Referrals: Your Satisfied Clients, Your Business Network, YourBusiness Partners, COIs. . . are some better than others?2. Why Clients give Bankers referrals.3. Why some Bankers avoid asking for referrals.4. Working with Satisfied Clients as a Referral Source (and for TestimonialReferrals).5. Working with a Business Network as a Referral Source.6. “Cold Calling”, if all else fails.Today’s AgendaGetting in the Door with Prospects3
  4. 4. MZ BIERLY CONSULTINGBUILDING NEW RELATIONSHIPSFASTERGetting in the Door with Prospects4
  5. 5. MZ BIERLY CONSULTINGDeveloping new relationships is critical in today’s bankingenvironment. But sustainable success in “prospecting” significant newrelationships requires 2 things:1. Building momentum in the First 3 Meetings.2. Consistently getting the 1st Appointment.Building New Relationships Faster5
  6. 6. MZ BIERLY CONSULTINGWhat does it take to build momentum more quickly and toconsistently overcome inertia?1. In the First 3 Meetings. . . build momentum by establishing yourbusiness “acumen” and your ability to align with the BusinessOwner’s “business strategy”.2. When Getting the 1st Appointment. . . be introduced by someonethe prospect trusts. Trust and Rapport is built more effectively andmore quickly when you are introduced with a testimonial referral.Building New Relationships Faster6
  7. 7. MZ BIERLY CONSULTINGWhat does it take to build momentum more quickly and toconsistently overcome inertia?1. In the First 3 Meetings. . . build momentum by establishing yourbusiness “acumen” and your ability to align with the BusinessOwner’s “business strategy”.2. When Getting the 1st Appointment. . . be introduced by someonethe prospect trusts. Trust and Rapport is built more effectively andmore quickly when you are introduced with a testimonial referral.Building New Relationships Faster7
  8. 8. MZ BIERLY CONSULTING1. The key to acquisition and expansion of new relationships is overcominginertia. . . It’s easier for the Business Owner/Decision Maker not to move.2. It’s one thing to move a product, it’s another thing to move a significantportion of a new relationship. Your objective is to move 55% to 65% of therelationship in less than 12 months.3. Your strategy is to build enough momentum in the first 3 meetings toovercome the inertia.4. The most effective method of building momentum in today’s bankingenvironment is. . .Aligning with the Business Owner’s Business Strategy, Business Plan,Business Objectives and Business Operations. . . And, as a result,finding multiple needs.Building New Relationships: Overcoming Inertia8
  9. 9. MZ BIERLY CONSULTINGBusiness OwnerDDA DDAMMA MMAInternet Banking Short-Term/Long-Term InvestmentsLine of Credit Retirement Planning/Retirement PlanEquipment Loan/Lease MortgageSEP HELOCLiability Insurance Term Life InsuranceEmployee RelationshipsTotal: 7 Total: 7Defining New Relationships. . . 60% Wallet ShareProfessional Practice: 10-years, $600,000 in sales60% of the“Relationship”9
  10. 10. MZ BIERLY CONSULTINGBusiness OwnerDDA DDAMMA MMAWeb-Based Banking/Cash Management Web-Based BankingLine of Credit InvestmentsEquipment Loan/Lease Retirement Planning/Retirement PlanCommercial Mortgage Jumbo Mortgage401(k) HELOCLiability Insurance Life InsuranceKey Man Insurance, Buy/Sell AgreementTotal: 9 Total: 8Defining New Relationships. . . 60% Wallet ShareBusiness Services: 15-years, $3,500,000 in sales60% of the“Relationship”10
  11. 11. MZ BIERLY CONSULTINGBusiness Partners(s)DDA/Cash Management DDAMMA MMALine of Credit, Acquisition Financing Web-Based BankingEquipment Loan/Lease Private BankingCommercial Mortgage Investment ManagementPayroll Retirement Planning/Retirement PlanMerchant Account Jumbo Mortgage401(k) HELOCLiability Insurance Life InsuranceKey Man Insurance, Buy/Sell AgreementTotal: 10 Total: 9Defining New Relationships. . . 60% Wallet ShareProfessional Practice: 18-years, $8,500,000 in sales60% of the“Relationship”11
  12. 12. MZ BIERLY CONSULTINGDefining New Relationships. . . 60% Wallet ShareBusiness Services: 20-years, $28,500,000 in salesCompany Decision Makers, Key EmployeesTreasury Management Private BankingWorking Capital, Acquisition Financing InvestmentsEquipment Loans/Leases Jumbo MortgageCommercial Mortgage HELOCSwaps, Derivatives Life InsuranceInvestments, 401(k) Retirement Planning/Retirement PlanLiability Insurance Estate PlanningKey Man Insurance, Buy/Sell AgreementEmployee BankingTotal: 9 Total: 760% of the“Relationship”12
  13. 13. MZ BIERLY CONSULTINGAll the good customers are already taken. And, in many cases the BusinessOwner of that “good business” has some degree of loyalty to the incumbentbank. That creates a predictable situation. . .1. A focus on products in the early calls often results in the “loyal” BusinessOwner taking your recommendations and ideas back to the incumbentbank. . . the loyalty issue.2. Overcoming loyalty requires that you build “your own loyalty” with theBusiness Owner.3. When the Business Owner thinks and feels that you have provided ideas,education, insights, competitive knowledge, he/she wants you to keepcoming back. . . and then begins to think that he “owes you” for what youhave provided. Loyalty is building! He wants you to keep coming back.Building New Relationships: The Loyalty Issue13
  14. 14. MZ BIERLY CONSULTING“Product” Conversations, “Product Questions”1. Where are you banking?2. What products are you using?3. How are they priced and structured?4. What are 2 things 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 your bankingrelationship?Where are the Business Issues here? Thesequestions focus on products; comparing yourproducts with a competitor’s. These questionsdemonstrate product acumen!!Look at these Questions. . .214
  15. 15. MZ BIERLY CONSULTING“Business” Conversations, “Business Questions”These questions align with a Business Owner’s BusinessStrategy, Business Plan, Business Objectives, BusinessOperations. These questions build Momentum Faster andOvercome Loyalty more effectively.Use this Question Set to Focus on Business Issuesand Build Relationship Momentum215
  16. 16. MZ BIERLY CONSULTINGWhat does it take to build momentum more quickly and toconsistently overcome inertia?1. In the First 3 Meetings. . . build momentum by establishing yourbusiness “acumen” and your ability to align with the BusinessOwner’s “business strategy”.2. When Getting the 1st Appointment. . . be introduced by someonethe prospect trusts. Trust and Rapport is built more effectively andmore quickly when you are introduced with a testimonial referral.Building New Relationships Faster16
  17. 17. MZ BIERLY CONSULTINGWhat does it take to momentum more quickly and to consistentlyovercome inertia?1. In the First 3 Meetings. . . build momentum by establishing yourbusiness “acumen” and your ability to align with the BusinessOwner’s “business strategy”.2. When Getting the 1st Appointment. . . be introduced by someonethe prospect trusts. Trust and Rapport is built more effectively andmore quickly when you are introduced with a testimonial referral.Building New Relationships Faster17
  18. 18. MZ BIERLY CONSULTINGBuilding New Relationships: Conversion Rates, 1stAppointment Rates and Testimonial Referrals180%10%20%30%40%50%60%ConversionRate(%)CustomerReferralLine ofBusinessReferral COIReferralRMCold Calling“Referrals” can getyou an introduction, atestimonial and add toyour prospect list!Third ChoiceLast ChoiceTestimonialReferralSecond ChoiceFirst Choice
  19. 19. MZ BIERLY CONSULTINGASKING FOR REFERRALSGetting in the Door with Prospects19
  20. 20. 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; and most Bankers don’task.• 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 fora referral in the past 24 months.Is a Consistent Flow of Referrals a Possibility?20
  21. 21. MZ BIERLY CONSULTINGWhy do Business Owners provide referrals?1. They may like to help other business people.2. They may want to be “heroes” to their friends and business partners.3. They understand that it’s the best way to grow business for them and foryou.4. They may see referrals as a way to “pay you back”.Why don’t Bankers ask for referrals?1. The quality of referrals isn’t always the best.2. They don’t want to “harass” good clients.3. They’re not sure whom to ask; they’re not sure when to ask.4. They don’t have a process for asking!Referral “Reluctance”21
  22. 22. MZ BIERLY CONSULTINGThere are multiple ways to build a Network Referral Process. . . butone works better than the others. Here are the three most prevalent:1. 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. . .”Number 3 is always the best choice.Asking for Referrals22
  23. 23. MZ BIERLY CONSULTINGLet’s differentiate between these referral processes. . .Wait and See:“If I continually provide outstanding service. . . when they hear of anopportunity, they’ll give me a call.”The Problem:a. Referrals are less frequent. . . Giving you referrals is not “top ofmind” with the potential referral source.b. You can’t control the “quality” of the referral.Asking for Referrals23
  24. 24. MZ BIERLY CONSULTINGLet’s differentiate between these referral processes. . .Let them know I’m Interested:“Jack, if you think of anyone who would be a good a match for meand the Bank I’d love to talk with them. Let me know if you think ofanyone.”The Problem:• The client has to do all the thinking. . . he says he’ll keep you inmind. The problem is; he has a lot on his mind.• You can’t control the “quality” of the referral.Asking for Referrals24
  25. 25. MZ BIERLY CONSULTINGLet’s differentiate between these referral processes. . .Proactively Ask for an Introduction:“Jack, there are a several people in the area I’m trying to meet, Iwas hoping I could run their names by you. . .”The Problem:• The client may not know anyone on your “list”.• The client may give you a referral anyway; a referral that doesn’tmatch your target profile.Asking for Referrals25
  26. 26. MZ BIERLY CONSULTINGLet’s differentiate between these referral processes. . .Why Number 3?1. You control the “quality of the referral”. . . It matches your targetprofile because you are putting the names of the Business Ownersyou want to meet in front of the Satisfied Client.2. You control how often you ask for an introduction.3. 2 degrees of separation is a “fact” in most markets; one of thepeople in your client base or business network already knowsthe Business Owner you want to meet!Asking for Referrals26
  27. 27. MZ BIERLY CONSULTINGBUILDING AND WORKING WITH APROSPECT LISTGetting in the Door with Prospects27
  28. 28. MZ BIERLY CONSULTING1. If you’ve done your homework, you already have a Prospect Listthat matches a Target Profile (built in conjunction with your financeand risk management teams).2. If you want your Referral Network to add names to your ProspectList you’ll need a Target Profile to show your Referral Networkwhat you are looking for (or you may get what you’re not lookingfor).It Starts with a Prospect List and a Target Profile28
  29. 29. MZ BIERLY CONSULTINGTarget Industries Limited Appeal IndustriesDistributors, Wholesalers Low-End RetailManufacturers Trade ContractorsLaw Practices Real Estate or Construction BusinessesArchitect, Engineering, and Business Service Firms Service or Gas StationsMedical, Dental, and Health Practices Used Car DealershipsAccounting Firms RestaurantsInsurance Brokers or Firms Mini-warehouses/CarwashesTransportation Businesses Landscaping ContractorsLarge RetailersAn Example of a “Target Profile”Define the Industries you want to do more business with.29
  30. 30. MZ BIERLY CONSULTINGBusiness CharacteristicsIn business over 5 yearsSales revenue between $1,000,000 and $20,000,000Employing more than 5 peoplePlant located within 10 miles of a branch locationPrivately heldExperienced management teamBorrowing needs over $250,000Satisfactory business borrowing-track recordProfitable (Net Profit After Tax) for at least two consecutive yearsDeposit balances average more than $50,000Using or needing 5 or more business product categoriesAn Example of a “Target Profile”Define the Business Characteristics of the businesses you want todo business with.30
  31. 31. MZ BIERLY CONSULTINGMiddle Market [$25 million to $250 million] 25 businessesBusiness Banking [$2 million to $25 million] 35 businessesSmall Business Market [$500,000 to $2 million] 50 businessesHow Many Names on a “Good” Prospect ListDepending on the segment, the “size” of your Master Prospect List varies.Middle Market [$25 million to $250 million] 10 businessesBusiness Banking [$2 million to $25 million] 15 businessesSmall Business Market [$500,000 to $2 million] 15 businessesThe size of the Short Prospect List varies (This list is a subset of your MasterProspect List).31
  32. 32. MZ BIERLY CONSULTINGBUILDING A SHORT PROSPECT LISTGetting in the Door with Prospects32
  33. 33. MZ BIERLY CONSULTINGBuild a “Short Prospect List” for your Satisfied Clients1. Who do the Clients on your Satisfied Client List know?a. Review any client data (payable/receivable lists, client/supplier lists, for example)that lists who your Satisfied Clients do business with or know.b. Additionally, if any of the businesses on payable/receivable lists or client/supplierlists match your Target Profile, ask the Satisfied Client to introduce you to thoseBusiness Owners.2. Look at the “industry” for each of your Satisfied Clients.a. Given their industry or sector, who might they know in that industry or arelated industry; make a list of the related industries.b. Review your Master Prospect List and select prospects in the relatedindustries you listed. Add the selected prospects to your Short Prospect List.You’ll want to show these prospects to your Satisfied Clients in the same industry.Building Your Short Prospect List33
  34. 34. MZ BIERLY CONSULTINGBuild a “Short Prospect List” for your Business Network1. Sort your Master Prospect List.a. One version based on Industry (NAIC Code)b. Another Based on Geographic Location2. Create a Short Prospect List based on Industry and Related Industries.3. Create a Short Prospect List based on Geographic Locations.Here’s an example of using #1 and #2: Your market is a County Seat. Thereare over 50 Law Firms in the area. You have 11 Law Firms that match yourTarget Profile on your Master Prospect List. So, you build a Short ProspectList with all 11 Law Firms on it. Today you’re meeting with someone who hasconnections in the legal world and you’ll this opportunity to show her Law FirmShort Prospect List.Building Your Short Prospect List34
  35. 35. MZ BIERLY CONSULTINGWORKING WITH SATISFIED CLIENTSFOR REFERRALSGetting in the Door with Prospects35
  36. 36. MZ BIERLY CONSULTING1. Determine the Criteria for a Satisfied Client. For example:a. Has repeatedly told you how helpful you have been.b. Has written or communicated to your manager that you areoutstanding.c. Has given you multiple referrals in the past.2. Build a list of Satisfied Clients.a. “Carefully” review your client list and build a list of your clientswho match the Criteria of a Satisfied Client.b. Your List of Satisfied Clients should be 10 to 25 names.Building the Satisfied Client List36
  37. 37. MZ BIERLY CONSULTING1. A To-Do list for completing and adding to your Satisfied Client List.2. From your data systems, print a list of all your Business Clients. Ideally,your list should include the data in most of the column headings on theSatisfied Client List.3. Start your List by using the criteria on Slide 33 and applying it to yourBusiness Client List. Start by adding at least 15 names. Add the names tothe spreadsheet labeled Satisfied Client List.4. As you go through next 13 weeks keep your eyes and ears open foradditional names you can add. Shoot for a list of 25 names on yourSatisfied Client List.Building the Satisfied Client List37
  38. 38. MZ BIERLY CONSULTING1. Your objective is to review your Short Prospect List with your selectedClients; determine the method you want to use:a. Lunch Meetingb. Relationship Development Meetingc. Wait for a high point in the relationship2. Determine the outcome you will ask for (1 or 2 are the best choices).a. Satisfied Client makes the appointment with the Prospect for youb. Satisfied Client calls the Prospect, makes an introduction and gives atestimonialc. Satisfied Client says “OK, you can use my name when you call your Prospectfor the appointment.”Working with Satisfied Clients for ReferralsShare your Short Prospect List with Your Satisfied Clients.38
  39. 39. MZ BIERLY CONSULTING3. Set a Target for the your Activity.a. For example, “I’ll show my Short Prospect List to at least 1 Satisfied Clienteach week for the next 15 weeks.”4. Using a Lunch Meeting as an example. Here is the suggested “scenario”:a. “How are things going with us (your Bank)?”b. “Any areas of concern in your work with the Bank (again, your Bank)? AnyIssues we need to resolve?” [Make a note of issues and their resolutions.]c. If all is well, you have a high point in the relationship; now, ask for a“personal” favor.d. Show him/her your Short Prospect List.e. Indicate and suggest possible “introduction” method.Working with Satisfied Clients for ReferralsShare your Short Prospect List with Your Satisfied Clients.39
  40. 40. MZ BIERLY CONSULTING5. Keep the Satisfied Client in the Loop.a. After you get the appointment, call and tell the Client.b. After the 1st meeting with the Prospect, send a Thank You note to the Client.6. Additional ways to say Thank You.a. Invite them to lunch or to a social event.b. Send them a referral.Working with Satisfied Clients for ReferralsShare your Short Prospect List with Your Satisfied Clients.40
  41. 41. MZ BIERLY CONSULTINGHigh Points in Relationships are the optimal time to ask for referrals: When they thank you for your help. When they express satisfaction with you or the bank. When you give them a referral and they thank you.Some of these “moments” happen without planning. . . Keep yourShort Prospect List with you at all times.Working with Satisfied Clients for ReferralsIdentifying High Points in Relationships41
  42. 42. MZ BIERLY CONSULTINGExample #1: You have just finished resolving a problem for your client JackSmith. He thanks you for your help and you respond:“I’m glad I could help you out.”“If you have a minute I could use some help too.” (Wait for a response.)“Over the last few months I‘ve been working to build my client base. To get thingsmoving I built a prospect list of 15 names of businesses in the area who would be agood match for me and the bank. As you know, finding a way to get an introduction toprospective clients isn’t easy.”“Would you be willing to take a minute and look over my prospect list? I would begrateful for any suggestions or help you could provide.”Working with Satisfied Clients for ReferralsYou can use these “templates” as a model for asking for ShortProspect List Referrals:42
  43. 43. MZ BIERLY CONSULTINGExample #2: You just finished closing a loan or completing a cashmanagement installation for your client Jane Doe. She thanks you for yourhelp and you respond:“I’m glad I could help you out.”“If you have a minute I was hoping you could help me out on a project I’ve beenworking on.” (Wait for a response.)“Over the last few months I‘ve been focusing on building my client base. To get thingsmoving I built a prospect list of 15 names of businesses in the area who would be agood match for me and the bank. My goal is to have an opportunity to meet with theowners of each of these businesses.“Since you’ve been doing business in the area for many years, I thought you mightknow some of the Business Owners on my list. Would you be willing to take a minuteand look over my list? I would be grateful for any suggestions or help you couldprovide.”Working with Satisfied Clients for Referrals43
  44. 44. MZ BIERLY CONSULTINGExample #3: You just completed a 3rd meeting with a prospect. At the end ofthis meeting, the prospect thanks you for the ideas you discussed with himduring each of the meetings.“I’m glad that our conversations have been helpful. Do you have another minute? Icould use some help too.” (Wait for a response.)“At the beginning of the year I made a personal goal to bring in 10 new clients thisyear. To keep things moving I consistently maintain a prospect list of 15 names ofbusinesses in the area who I think would be a good match for me and the bank.”“Since you’ve been doing business in the area for over a decade and have anextensive network I thought you might know some of the Business Owners on myprospect list. Would you be willing to take a minute and look over my list? I would begrateful for any suggestions or help you could provide.”Working with Satisfied Clients for Referrals44
  45. 45. MZ BIERLY CONSULTINGWORKING WITH YOUR BUSINESSNETWORKBuilding New Relationships Faster45
  46. 46. MZ BIERLY CONSULTINGRemember, 2° of separation is what networking is all about. Bycombining all the names on your Satisfied Client List with this listwe’re building now, we’ll get the 35 to 50 names we’re looking for.1. Get the spreadsheet that says Business Network List. This iswhere you’ll build your Business Network List.2. This list should have 25 to 35 Business Owners.Building the Business Network List46
  47. 47. MZ BIERLY CONSULTINGIf you are new in your market or new to Business Development, werecommend joining 2 Trade Associations.1. Select several industries that are “plentiful” in your market (for example,attorneys in a county seat or health care where there is a major hospital).2. Now narrow down to 2 industries that you find “interesting”.3. Join those Trade Associations (for example, mgma.org, the TradeAssociation for Medical Practice Business Managers).Another option is to join a networking club (for example, Business NetworkInternational.And in community markets, where the options above are limited, you’ll needto be involved and visible in the community. (But keep in mind, being involveddoes equate to getting referrals. . . you’ll still have to be proactive and ask.)Building the Business Network List47
  48. 48. MZ BIERLY CONSULTINGBuild Your Business Network List using these sources of BusinessOwners.1. Your clients (this listing of clients may go beyond your “Satisfied” Clients)2. Your COIs (Accountants, Attorneys, CFPs, Business Consultants, etc.)3. Prospects you have called on (who responded well to your meetings but had noopportunities now. . . and thanked you for being a resource)4. Suppliers of your clients (payables lists)5. The businesses your clients sell to (receivables lists)6. Your Legal Board or Advisory Board members7. The members of the Trade Associations you belong to8. Your business-related network “club” [for example BNI]9. Neighbors who sell for a living or who own a business10. Friends who sell for a living or who own a business11. Anyone you know who sells to Business Owners [for example, someone who sells forPaychex or ADP]Building the Business Network List48
  49. 49. MZ BIERLY CONSULTINGA To-Do list for adding to your Business Network List:1. Begin by building a Business Network List of 20 Names. The ultimate goalis to have a Business Network List of 35 names.2. Record the names on the Business Network Spreadsheet in the ExcelSpreadsheet.3. As you go through the week keep your eyes and ears open to additionalnames you that you could add to your Business Network List. . . over thenext weeks more names might come into your mind that initially youoverlooked.4. Continue identifying possible Business Owners to add to your list. Don’tstop until you have a total of 35 names.Building the Business Network List49
  50. 50. MZ BIERLY CONSULTINGWorking with your Business Network List:1. Start taking your Short Prospect List with you everywhere you go.2. Set a weekly target for “meeting” with Business Owners on your BusinessNetwork List to ask for a referral [for example, at Trade Associationmeetings, community events, lunch/breakfast meetings].3. Start using the appointment request templates and edit to your style. . .But ask proactively!4. Practice, practice, practice.Remember always face-to-face!1. As you go through the week keep your eyes and ears open to additionalnames you that you could add to your Satisfied Client List and BusinessNetwork List.Working with Your Business Network50
  51. 51. MZ BIERLY CONSULTINGShow Your Prospect List to People on your Business Network List.1. Review your Business Network List for possible conflicts with your ShortProspect List.2. Call (on the phone) the Business Owner on your Business Network List toask for a personal “favor”. Unless you know the person extremely well[and they owe you for past favors], do not ask for the “referral” over thephone, wait until you are face-to-face to ask.3. Meet with your Business Network Business Owner.Working with Your Business Network List51
  52. 52. MZ BIERLY CONSULTINGShow Your Prospect List to People on your Business Network List.4. Show your Short Prospect List to the Business Owner, ask if he/sheknows any of the Business Owners on your Short Prospect List.a. If he doesn’t know anyone on your list, show him your TargetProfile and ask if they have any “business partners” that match yourTarget Profile (here’s where your target Profile is important). Add thosenames to your Prospect list.5. If he does know someone on your Short Prospect List, ask for a next step.Two possible scenarios are:a. Ask if he would call the prospect that he knows and introduce you,encouraging the Business Owner to take your phone call and to meetwith you.b. Ask if you could use his name when you call for the appointment.Working with Your Business Network List52
  53. 53. MZ BIERLY CONSULTING1. Contact the Prospect (from your Short Prospect List) with the “Referral” Provided.2. Contact the prospect by phone (or drop-by). Be prepared to get to the BusinessOwner, have your value statement ready!3. If you can’t get the Business Owner on the phone, leave a message referencing thereferral source. [Use the script in this section.]a. First choice: leave a message on the Business Owner’s voice mail.b. Second choice: leave a message with the gatekeeper (try to make sure themessage reflects your value statement. . . It probably won’t).4. Be prepared to leave 4 messages [1 per week for 4 straight weeks] before you giveup. Persistence is critical!5. Place any information about the business next to your phone so it’s readilyavailable if he/she calls you back [avoiding “brain freeze”].Working with Your Business Network List53
  54. 54. MZ BIERLY CONSULTING“Hello, this is John Doe from FirstBank. Is Mr. Jones available”?(Wait for a response.) In some cases you may be transferred to the decision maker ortheir voicemail, so be prepared with your value statement.Gatekeeper Response: “Mr. Jones is not in at this time, may I take a message?”Your Response: “May I leave him a voice mail?” (This is always your first choice.)Gatekeeper Response: “May I ask what this is in reference to?”Your Response: “I work with a number of veterinarians in town. I was referred to Mr.Jones by a mutual acquaintance, Richard Evans of Ft. Smith Animal Hospital. Hesuggested that we could be a potential resource for each other.”Ask for the Decision Maker’s voicemail again.Working with Your Business Network ListExample #1: Leaving a Message54
  55. 55. MZ BIERLY CONSULTING“Hello Ms. Jones, this is John Doe from FirstBank. I’m a Commercial BankingRelationship Manager here in our market. Thanks for taking my call.”“I was speaking with a mutual acquaintance of Mr. Dietz, Rob Thompson from WorldwideDistributing, and he suggested I give Mr. Dietz a call. Would you please pass thismessage along to Mr. Dietz and ask him to give me a call at his convenience?”Gatekeeper Response: “May I ask what this is in reference to?”Your Response: “I work with scrap metal dealers in the area supporting theirimport/export trade finance needs. Rob Thompson thought that some of the solutions wewere providing to his clients would be a good match for the business that Mr. Dietz hasbuilt in Asia and the Pacific Rim and suggested it would be useful for Mr. Dietz and me tomeet.”“Would it be possible for me to leave a voice mail for Mr. Dietz”?Working with Your Business Network ListExample #2: Leaving a Message55
  56. 56. MZ BIERLY CONSULTINGFollow-up with the Business Owner Example using “Industry Expertise” ValueStatement. Even with a referral, your appointment request needs a strong valuestatement.“Hello Mr. Dietz, this is John Doe from FirstBank. How are you? I’m a Relationship Manager inChestertown market, thank you for taking my call.”“I was speaking with a mutual acquaintance, Rob Thompson from Worldwide Distributing, and hesuggested I give you a call. I work with a number of scrap dealers in the area supporting theirtrade finance needs. Rob thought that some of the solutions we are providing to his businessmight be a good match for the business you are doing in the Pacific Rim and Asia.”“Over the last 20 years, we have worked with a number of ferrous and non-ferrous scrap dealers.Increasingly, we have been supporting our non-ferrous clients in two areas: letter of credit issuesin the developing countries in the Pacific Rim and currency exchange issues in Asia.”“As a non-ferrous dealer with clients in areas where we have broad experience, Rob and I thoughtyou might find useful some of the expertise and solutions we have been providing to other non-ferrous dealers.”“Do you have some time in the next few weeks when we could get together?”Working with Your Business Network List56
  57. 57. MZ BIERLY CONSULTINGCOLD CALLINGGetting in the Door with Prospects57
  58. 58. MZ BIERLY CONSULTINGWithout a referral, getting appointments comes tonumbers, luck or a great “value statement”.For a prospect to give up his valuable time,he will need to see something of valuein the time he will spend with you.Cold Calling and Value Statements58
  59. 59. MZ BIERLY CONSULTINGHere are several areas that have proven to be reliable areas of interestand value for prospects.1. Third-Party Referrals: Use a referral from an existing client, anacquaintance or a third-party professional. Be sure to ask for permission touse his or her name before using it as a referral. Success Rate [65%]2. Industry Experience and Expertise: Focus on your experience andexpertise with the prospect’s industry. Success Rate [45%]3. References: Refer to a piece of news or an article in a publication.Success Rate [25%]4. New Situations/Products/Services: Discuss a new situation, a newproduct, or any innovation at your bank that might be of value to theprospect. Success Rate [15%]Cold Calling and Value Statements59
  60. 60. MZ BIERLY CONSULTINGFor many bankers calling in a smaller community, there is a an effectivealternative to numbers 2, 3 and 4 above. . .5. Community Approach: Discuss the fact that you both do business in thesame community and could be a resource for each other in the future . . .“You’ve been doing business in this area for a number of years and so have we.Unfortunately, we’ve never had a chance to meet. I’d love the opportunity [1] to findout more about your business, where you are and where you’re going; [2] to tell youmore about us and the kind of things we’re doing.Then, who knows, maybe we can be a resource for each other somewhere downthe road.Do you have some time in the next week or so to get together?”Cold Calling and Value Statements60
  61. 61. MZ BIERLY CONSULTINGNo referral? Next best choice, use Experience and Expertise in your ValueStatement. This example uses industry experience as a value statement to getan appointment:“Hello Mr. Dietz, my name is John Doe with FirstBank. How are you?”“Over the last 20 years, we have worked with a number of ferrous and non-ferrousscrap dealers in Baltimore, Philadelphia and Newark. Increasingly, we have beensupporting our ferrous clients in two areas: resolving letter of credit issues in CentralEurope and advising on currency exchange issues in developing economies in thePacific Rim.”“As a ferrous dealer with clients in locations and economies where we have broadexperience, I thought it might be helpful to discuss with you some of the issues we’reseeing in those markets and the solutions we have been providing to other ferrousdealers.”“Do you have some time in the next few weeks when we could get together?”Cold Calling and Value Statements61
  62. 62. MZ BIERLY CONSULTINGThese are responses to the most common objections that bankers hear inproactive business development.“Tell me over the phone that’ll save us both time.”“Mr. Dietz, we provide a variety of resources for business owners. The services that Iwould recommend for your business depend on the specific needs of you and yourbusiness. If we could meet and I could find out more about your business, I think Icould make some recommendations that would carefully match your needs. . . now orin the future. Would it be possible to meet in the next couple of weeks?”Cold Calling and Objections62
  63. 63. MZ BIERLY CONSULTING“This is a bad time, I’m busy.”“I understand. Is there a time that would work better for you?” (Wait for a response.)Sometimes this objection is a cover for one of the objections above.(If the answer is Yes)“When would work best for you? (Wait for a response.) Great, I’ll give you a call aweek or so in advance to set up an appointment. I look forward to talking with youthen.”(If the answer is No)“I can understand, running a business is demanding. With your permission, I’d like tocheck back with you from time to time to see how things are going and if I can help inany way. May I give you a call in say 3 months?”Cold Calling and Objections63
  64. 64. MZ BIERLY CONSULTING“My primary bank is XYZ. I’ve been with them for 15 years and I’m quitesatisfied.”“For you to stay at one bank for 15 years tells me a lot about you as well as yourrelationship with XYZ Bank. Respecting that relationship, I’d still like the opportunityto come by and find out more about you and your business — then if a need ariseswhere a second bank or a second opinion might be helpful, you’ll have me as aresource. Would it be possible for us to meet in the next couple of weeks to talkfurther?”“It sounds like you have developed an excellent relationship with your primary bank. Iwould still like the opportunity to come by and meet with you. What I’d like to offer isan opportunity to preview with you the newest set of financial products designedspecifically for small business owners. This would give you an opportunity to seewhat’s out there today. Would it be possible for us to meet in the next couple ofweeks to talk further?”Cold Calling and Objections64
  65. 65. MZ BIERLY CONSULTING“I’ve got an X% rate on my loan; if you can you beat it, I’ll be happy to talkwith you.”“That sounds like a very competitive rate. Over the last several years, ourrates have been highly competitive too. As you may know, there are manyfactors lenders use to price their loan products. Before I can give you arealistic idea of how we would price your loan, I’d need to get a betterunderstanding your borrowing needs and your business. If we could gettogether and discuss these areas, I could quickly put together theinformation I need to get you a rate. Do you have some time in the next fewweeks?”Cold Calling and Objections65
  66. 66. MZ BIERLY CONSULTING“Convenience is important to me; do you have a branch close to me?”(The answer is “No”)“I understand location convenience is often important. Usually locationconvenience is most important when a business makes many deposits orhas employees who cash their checks after being paid. Is that the case?”Listen carefully to the response. If it is all about frequent deposits/locations,there’s not much you can say.If convenience is about something other than location, proceed with thefollowing:“However, technology has made banking less dependent of branch location.Would it be possible to meet in the next couple of weeks to learn moreabout your business and discuss how today’s technology may make yourbanking more convenient.Cold Calling and Objections66
  67. 67. MZ BIERLY CONSULTING1. All these methods work. . . with varying degrees of effectiveness.Now it’s time to make a commitment.2. Sit down with your Sales Manager and make a decision on thesteps you will follow to implement these. Each one requires workand practice, practice, practice will be the key to success.3. But once you’ve made your choices stick with it for 26 weeks,Commit!4. No whining, no complaining, no wondering if it’s really going towork, get with it and stay focused!Final Comments67
  68. 68. MZ BIERLY CONSULTINGVisit Our Website After the conference take a fewminutes to explore our website. . . And register for our emailnewsletters and blog. Each monthyou’ll get suggestions, tips, andhow-to’s to fine-tune your sales andsales leadership processes. Find out about our archivedwebinars on sales and salesleadership topics. To find out more about ourresources for business bankingteams go towww.mzbierlyconsulting.com or callNed Miller at (610) 296-4772 oremail him atnmiller@mzbierlyconsulting.com68

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