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Help Me Understand – Responses and this Month’s Rant

By Jack Hubbard, Chief Experience Officer

Last month’s newsletter generated more response from readers than any in our history. We received countless e-mails and telephone calls concerning Sales Force Automation usage (or lack thereof) and use of the Out of Office message. One banker suggested if we wrote this column each month she would use it for discussion points in team meetings. Conversation Signposts is about you, so consider it done. We also received several counterpoints to the Out of Office rant. Here is an unedited e-mail. I have withheld the banker’s name by request.

While there may be some customer situations, like random cold calling, where you may not want them to know you are unavailable, for the most part I disagree strongly with your comments on Out of Office messages. Customers use e-systems for all kinds of day-to-day requests and questions – payment updates, OD’s, wire, L/C, or other funding requests – and unless they cc everyone possible on the first send, they assume the officer addressed will open and handle the matter at hand. The Out of Office is an immediate signal to use alternate contacts at once, since even an hour or two of delay can cause additional problems on some of these routine daily matters. If the original officer is able to respond a few hours later anyway, it just impresses the customer that we are on top of things even when we are not physically in the office.

Internally, if another department sends information to our supervisor assuming they will distribute accordingly. However, if he/she is not available, the email may sit for days in their inbox if the Out of Office is not engaged; if engaged, the sender may choose to send directly to each staff member, if necessary (or let it sit if not so important). Our bank strongly urges everyone to use these tools if they are out for even 1⁄2 day.

My disagreement on this subject notwithstanding, a thought- provoking March issue.

P.S., If you respond to this message before 4/10, you will get my Out of Office message!

The Rant Du Jour
Help Me Understand About Pipedream Meetings

The above reader captured one critical issue Bob St. Meyer and I have one our minds for every edition – make it thought provoking. So, help me understand why pipeline meetings are still as dull and time wasting as they were in the 70’s. Pipeline meetings on the business banking and commercial are mostly pipedream meetings where one banker fantasizes about what is in they have going, the next banker’s fantasy is slightly better and so on and so on. I am fascinated when sales managers tell me their bankers plates are so full they don’t have an hour a day to prospect. Yet, they are willing to have their subordinates sit in meetings for an hour or so every week to play liar’s poker.

Sales managers perpetuate the problem by continuing to roll out the same tired agenda week after week. Someone actually counted that bankers spend 37% of their time in meetings. Another survey indicates 50% of senior managers feel their meetings are ineffective but they plan to do nothing to change them. Last year, 4% of bankers attending meetings fell asleep, hit their head on the table and were taken away by the paramedics. When will these meetings become “get to go” versus “have to go?”

Help me understand why:

Pipeline meetings can’t focus on strategy, action orientation and best practices (and that’s all)

Managers don’t realize that no one else cares what’s in John’s pipeline and that those conversations should happen with John one on one

Meetings don’t happen at 7:30 AM on Monday and end promptly at 8:15. I’m shocked when I hear meetings occurring at the lunch hour or at the end of the day. That is belly to belly time with clients and pre-clients in my book.

We don’t share successes and challenges and hold meaningful discussions that lead to better sales conversations in the field with clients and pre-clients

Business Bankers aren’t responsible to read a sales book a quarter and why those readings aren’t connected in any way to the meeting

We don’t practice more – stuff like getting telephone appointments

When guests and internal partners come to meetings they aren’t told that this is their time for communication and shared knowledge and not one way pontification about their product

Meetings don’t start with a review of how last week’s sales tip made a difference in the field and end with this a sales tip that associates are held accountable to do this week

Want to attend a great sales meeting? Look in your portfolio and find a company on the grow. Maybe it’s an ad agency, a metal bender, a realtor. Call and ask if you can attend one of their meetings to get some best practices you can take back to the bank. The client will be flattered and you will take away lots of ideas. Got a thought on Team Meetings? E-mail me and let me know. We’ll publish your ideas next month.

Micro Business Strategies

In the February issue we asked readers several questions about an important niche, the Micro Business market. Defined in various ways, these main street entrepreneurs are everywhere. New words are popping up all over to describe them; Boomertrenuer (the over 50 crowd that is starting a new career), Mommytreneur (women who are doing the important work of helping raise the kids but that want a career also), Immigranttreneurs (folks coming from all over that seek a better life here). There are SOHOs, mom and pops – you know the names. There are literally millions of them and our industry continues look to develop strategies to reach this revenue-rich niche.

Intuit, those great people that designed such software as QuckBooks has just published the first of three installments to a series called, “The Future of Small Business.” Want a copy of this interesting and valuable White Paper? E-mail me and you’ll have it. Below are the results of our unscientific survey about Micro Business strategies. We placed it in text to prevent your computers from crashing but if you want a more graphically appealing copy of the study, e-mail me at jhubbard@stmeyerandhubbard.com and I’ll send you a PDF version.

My bank has an articulated strategy to reach the Micro Business market.

Yes	46.4%
No	50.0%
No Answer	3.6%

My bank has a defined sales process for the Micro Business market.

Yes	35.8%
No	64.3%

My bank has a defined sales management process around the Micro Business market.

Yes	39.3%
No	60.7%

My bank has a formalized calling program targeted to the Micro Business market.

Yes	42.9%
No	57.1%

The banker that leads our Micro Business effort is called:

No Person is Responsible	42.9%
Head of Business Banking	21.4%
Head of Something Else	17.9%
Head of Retail Banking	10.7%
Head of Commercial Banking	3.6%
Head of Marketing	3.5%

The person that is the sales manager in Micro Business effort is called:
No Day to Day Sales Manager 39.3%

Other	24.9%
Regional Manager - Business Banking	17.9%
Regional Manager - Retail Banking	14.3%
Regional Manager - Commercial Banking	3.6%

When a Micro Business client has a financial need their primary point of contact is:

Branch Manager	50.3%
Micro Business Relationship Manager	32.1%
Other	17.6%

My bank prospects for new Micro Business clients by:

Referrals from Centers of Influence	75.0%
Internally generated referrals	71.4%
Cold Calling	60.7%
Call Blitzes	39.3%
Direct mail from lists purchased	28.6%
Systematic approach	21.4%
Other	21.4%
Website	10.7%
Outside Lead Generation Company	3.6%

The most likely banker to proactively prospect for new Micro Business clients at my bank is:

Branch Manager	32.1%
Micro Business Relationship Manager	25.0%
We have no formal prospecting approach	21.4%
Someone else in the branch	7.1%
Mass Marketing	3.8%
Call Center Representative	3.5%

My bank has done formal training around the following in the Micro Business space:

Product Knowledge	53.5%
Sales Training	53.5%
Lending Training	46.4%
How a Business Runs and Makes Money	14.3%
Sales Management Training	10.7%
Operations Training	7.1%

My bank has plans to do formal training around the following in the Micro Business space:

Product Knowledge	60.7%
Sales Training	60.7%
Lending Training	42.8%
How a Business Runs and Makes Money	28.6%
Sales Management Training	17.9%
Operations Training	10.7%

Do you find it curious that we teach bankers products and how to ask questions but withhold the knowledge of how a business runs? How can bankers land those skills into the world of the business owner out of context? And, without teaching or deepening sales manager’s skills around coaching, making joint calls and reinforcing the process how can the bank hope to optimize results?

Bankers that interact with Micro Businesses at my bank have the following tools at their disposal:

Central Underwriting for Small Loans	67.9%
Call Planning Tools	46.4%
Client Profile	46.4%
First Research	39.3%
Targeted Marketing Collateral	28.6%
Profitability Tool	28.6%
Onboarding tool and process	21.4%
Automated Call Reporting Tool	21.4%

My bank measures the results of our Micro Business efforts by using the following metrics:

Number of new relationships we earn	50.0%
Revenues not broken out	39.3%
Cross solving (our term for cross selling)	28.6%
Micro Business segment profitability	28.6%
Individual client profitability	28.6%
Branch level profitability	17.9%
Region level profitability	17.9%

My bank is taking the following approach to Micro Business in 2007:

We will continue current strategy	46.4%
This is in our top three strategies for 2007	21.4%
This is not a top tier strategy for 2007	21.4%
Micro Business is our top initiative	7.1%
No answer	3.7%

Networthing…If It’s Work It Isn’t Worth It

Visit any bookstore or click to Amazon and you’ll find lots of titles focused on networking. Many unfortunately still harken back to those “old days” of backslapping and schmoozing. Best-in-breed bankers recognize that like most components of the sales conversation process, networking has made a significant transition as well. Those that are successful at this important skill see it as networthing. Why? First because if its work it isn’t worth it and second, the key to success is making it worthwhile and meaningful for both parties. Networking is about you. Networthing is a win-win.

Dale Carnegie got it right when he said, “You can close more business in two months by becoming interested in other people than you can in two years by trying to get people interested in you.” What he was talking about was the law of reciprocity; the more you want in life the more you need to give away. Here are some ideas to make your networthing worth your time.

Pre-Select – Invest Your Time Wisely

When my daughter became sales manager of a large hotel in Chicago she learned one of her key duties was to attend business meetings. “Which ones should I attend, dad,” she asked. “The right ones,” I advised. There are an infinite number of events she could be present at, every one of them providing an opportunity for her to meet some new best friends. But while the gatherings are infinite in nature her time (and yours) isn’t.

At first blush the easy answer is; go to Chamber of Commerce events. Sounds fine on the surface but I’ve seen surveys recently that indicate only about 25% of businesses in any community belong to the Chamber but 100% of bankers do. Should you avoid Chamber of Commerce meetings, golf outings, Business after Hours? Of course not. But networthing nirvana likely won’t occur there. How about this?

I recently made a joint coaching call with a banker and toward the end of the conversation I asked “how do you stay current with best practices in your industry?” “Easy,” he replied. “I never miss a local or state meeting of the XYZ Association. Interestingly, the banker is eager to penetrate this industry. “How many bankers do you see at those meetings,” I asked the business owner. “I’ve never seen one,” he concluded. That was all the information the banker needed. She now attends every local chapter meeting and is scheduled to speak at the state conference in the fall. She has created lots of opportunities and has optimized her networthing time by attending the right meetings. Guess what? There are still no other bankers at these events. She has the room to herself.

Pre-Pare – Get Ready for Reciprocity

Too often bankers do little, if any preparation before walking in the door at an event. Consider calling the meeting sponsor and ask a few questions:

About how many people do you expect at the event?

Who are some of the people that have already registered?

How long do you anticipate the meeting to last?

Armed with answers to these three very basic questions you can now determine which two or three key people to approach, if any of their clients are likely to be present and about how much time to share with each participant. Some readers may find these questions intrusive or nosey. If I were running the event I would find it to be refreshing and professional.

Speaking of questions, how many and which ones will you plan to ask at the event? You’ll notice I didn’t mention the dreaded elevator speech. Memorizing a catch phrase and spewing it out all over the room is incongruent with today’s trust-based selling principles. And, if you are great networther you know it’s always better to be interested than interesting.

How about these:

Why are you here tonight?

What are two or three exciting things you are working on at your shop?

How do you stay current with trends and best practices in your industry?

How are revenues tracking compared to goal?

Is there someone here that you don’t know that I might introduce you to?

What do you do for fun?

How open would you be to my calling you to schedule an appointment to learn more about your issues and initiatives?

You likely won’t get through all of them so think of two or three high payoff questions that can help you understand how better to help this business colleague.

Be certain to bring more than enough business cards and two pens that work. Your cards should be in a left-hand pocket. That’s because, of course, you give with your left hand and shake (hands) and take (their card) with your right. When you receive a card, be sure to look at it, comment on anything interesting and place the card in your right pocket to avoid giving the card you just received to someone else you meet by mistake. That’s networthing 101 and of course you do that.

Post Conversation Bullets

When you get the answers to your questions and you move on to a new person, turn their card over and write bulleted answers on the back. If you meet a lot of people during an event and you ask the same questions of everyone, the answers will tend to blur. The faster you can capture and use the information, the sooner you are on your way to moving the conversation process to the next step.

Without being mechanical, work the room by holding conversations with as many people as possible. That means if the meeting lasts 120 minutes and there are 60 people in attendance you have about two minutes with each person. Let’s be real. That will never happen and when you have clients at the program you’ll want to invest more time with them. You likely won’t see everyone but be certain to seek out those top two or three people and share some of your evening with them.

Moving from person to person is challenging. What if you meet “the talker.” It’s great to learn more and more and more about their business but the clock is ticking. Once that alarm bell starts going off in your head that is it past time to move on, walk the talker to someone else you know or have just met and get them engaged with the other person. Another option is to suggest that you have all you need from them and that they are now boring you. You could also spill something on them.

I know a banker that is so good at this part, it’s scary. As it gets toward the time to meet another person, he begins to scan the room to find someone he knows or has met that the new person might benefit from knowing. He’ll say “you know, Jim, I’ve been thinking about what you do and there is someone that could really benefit from your (product, service). Would you like to meet them?” How could the person turn down a chance for a business opportunity? That’s why they went to the event in the first place.

VIP – Value Impressions Positive

Congratulations. You collected 28 business cards. Now what? World class sales people know the window of opportunity to get and hold someone’s share of mind after an event is about 48 hours. That means when you get home several things need to be done.

First, prioritize the cards based on your own criteria for follow up. It could be the size of the business, immediacy of need, how you connected or lots of others. Put the cards in A,B and C piles.

Next, if you can access your sales force automation system from home, immediately insert the information you obtained at the event. That includes the answers you got to your questions, any personal information you were able to glean and anything else that might help build your relationship with this person.

Finally, drop a quick e-mail to the best opportunities, thanking them for their time and attaching an article, a white paper - something of value that begins to help you get “mind traction” with that person.

Sustaining Networthing Performance

Sales Managers can go a long way to help bankers improve their networthing skills. One idea is to attend an event or two with their people, observe them in action and strategize how to coach associates to the next level. How about this? Why not run a sales meeting around the topic. Make it fun by first; talking about the concept and teaching bankers what you want them to do during an event. Second, have some senior managers play the role of clients and pre-clients at a networthing event while your bankers practice the skills they just learned. After an hour of that, the event is over and you can debrief your team and make plans to do some individual coaching based on what you observed.

Attending community events just to make a “tick mark” on your weekly calendar is not enough any longer. It’s time to attend the right events and do the right things that change networking to networthing.

Register for Conversation Signposts

Margins are squeezed and the yield curve is inverted. Boo, Hoo. Bankers that take control of their sales lives tell us the articles and ideas in Conversation Signposts make a difference regardless of curves and yields – that they can’t control in the first place. If someone else at your bank could benefit from Conversation Signposts, forward this edition to them and have them click on the hyperlink below to register: it’s FREE.

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