Help Me Understand...Aretha and a Little-Remembered Rock Group

By Jack Hubbard, Chief Experience Officer

Remember Erin? She’s that daughter who started us off in 2008 with her very popular rave. She’s joined a new hotel and we’ll unveil more about that in May. During one of our recent Sunday evening Check-ins, Erin and the Rantmaster had an interesting discussion about the impression some people have about sales as a profession. Seems as though she had been at a party and one of the guests suggested that “you don’t have to be very smart to be a sales person.” Another mentioned how he could never sell; that it was a “sleazy job.”

Coincidently I made an RMA Chapter presentation that same week and I asked the following questions:

• How many of you in the room are bankers? 100% of the hands went up
• How many of you in the room are lenders? About 90% of the hands stayed up
• How many of you in the room are salespeople? Less than 30% of the hands were left

That got me to thinking about that classic Aretha Franklin song, RESPECT, and set me to wondering when bankers will get some props for those sales efforts they engage in every day for their clients. We’ve all seen the stereotypes in movies such as Wall Street, Tin Men and even Glengarry Glen Ross. They all carry that sleaze factor–some more than others. Sales training companies and bank executives perpetuate that image by forcing cold calling, blitzes, call nights into the environment and when asking associates to memorize some outmoded script that in no way replicates how people have conversations.

Some of it is our own fault. When we see the prospect or client as a catalyst for incentive dollars, sometimes their best interests come second to ours. That can certainly change the way we behave from a “they” focus to a “me” focus. When we fail to plan, don’t ask the right questions, push too hard because we need the sale…all of that tends to make consumers and business owners put bankers into that “salesperson” bucket.

Part of it, too, is the way we feel about ourselves. The Staple Singers had a song in the 70s: Respect Yourself. With that in mind, I suggested to Erin that if she could always look herself in the mirror and know that she has done the right things for the client, she would never have to worry about how others perceive the profession she has chosen. She can also rest easy knowing there are many kinds of intelligence and if a professional salesperson holds intelligent conversations with a pre-client and always shows value to clients, that wisdom will come through with more and tighter trust-based relationships in good times, bad times, all the time.

Finally, I suggested to Erin that everyone on the team is vital if your business is to succeed. But it doesn’t take much intelligence to know that nothing happens until a sale is made.

The little-known rock group is from that 70s era and their only hit was Hocus Pocus. The band is Focus and that sets the table for the second part of this month’s rant. I’ve been traveling a goodly amount this year, talking about our new book, Conversations with Prospects. One of the surprises for me has been how challenged bankers are to proact to their business environments. When I talk about self-sourcing, it is many times a foreign concept. Rather than targeting their prospecting efforts to take advantage of that finite, precious selling time, they wait for referrals from branches and COIs and RFPs (Requests for Proposal) to come to them. Some even wait for marketing to provide lead lists. In other words, they react to what comes to them.

Pinpointing sourcing efforts starts with an understanding of the bank’s strategies combined with the personal expertise of the banker and the types of business that operate within the territory. Once the rules of the game are established, the banker can source by driving around, using the internet (such as Google News Alerts, Sorkins.com or Yahoo Yellow Pages) and even speak at key events attended by targeted prospects. Rather than simply attending any networking event, the banker can go to those meetings at which targeted industries gather. To get even more leads, the banker can be a speaker at that event. It is not activity that will help earn more new business, it is focused activity.

Aretha, Staples Singers and Focus…adding some rhythm to your psyche and to your sourcing efforts.

Presentainment…The Fine Art of Catching Versus Pitching (Part Three)

In two previous editions we’ve attempted to highlight some 21st Century ideas surrounding presentainment. We’ve discussed the use of technology in the creation and execution of presentations. We’ve urged partnering with marketing to create professional templates that reflect your brand. We’ve provided an overview of a logical approach to preparing for and delivering tailored solutions.

The comments from readers have been interesting. They range from “this is the exact route our bank needs to take to win more business” to “we’re bankers that are doing serious work with clients and we’re not stand-up comedians.” It’s clear that we have a long way to go in our industry before we get to a place where unveiling our solutions becomes more than faxing a term sheet or spewing one feature and benefit after another as the pre-client’s eyes glaze over. We ended the March column with three questions for readers to consider.

Question One

In a competitive situation what are the advantages and disadvantages of being first, second or third in presentation order? If you are first, what are some strategies to consider; if you are second, what are some strategies to consider; if you are third, what are some strategies to consider?

In a recent module we conducted for a large bank the answers
participants gave were perplexing and disconcerting. A great majority of the class believed the order of presentation was irrelevant. Others felt going first sets a positive tone and forces competitors to chin up because you have set the bar so high. Few felt there was any difference in going second or third. This was an astounding revelation. When one considers the hours invested in call preparation, execution and follow-up, it is staggering how little thought is put into the order in which presentainments are done. It’s even more frightening to consider that the sales managers in the room had virtually no strong opinion about coaching their bankers related to the order of presentation.

Our industry is obsessed with capturing tick marks of all kinds but looking at important strategic data such as how many clients we earn by presenting first, second or last is something most senior managers don’t consider. We know of no bank that measures win ratios based on order of presentation. SM&H does. We have data as to how many new clients we gain based on this issue. It’s clearly not the only factor but it is one that should be in the mix.

Whatever the banker can do legally and morally to present last should be done. Going third allows the listener to compare you to everyone else. It affords the salesperson the ability to response-block competitors, to change the rules, to reset the bar to an even higher level. This assumes that the last presenter is dynamic and that his or her approach is not “me too.” If you are different, more passionate and provide great value, we believe going last is more important than knowing much or anything about your competition.

The ability to be scheduled last does not occur in the final stages of the process as the potential buyer is looking at calendars. You will want to start down this path by doing some positioning during earlier conversations. Asking questions about when final presentations will be made, how the buyer will determine the order of presentation and the like can lay the groundwork for your request to go last. These are certainly not queries you would make on a first or maybe even a second call, but once you know you will be considered in the mix with other bankers, it’s time to think about your end-game strategy.

If you are forced to go first, you must set the bar so high that no other presenter can match you. You might also ask to get “a final day in court” after the other presentations are made–thus allowing you to go first AND last. Remember, beyond price, people bank with people they trust, respect and even like. If that can come through at the highest level you may win when you present in the lead off slot.

Going second is deadly. Winning in this slot is very tough. The best advice we could give if you are presenting second is to make an effort to reschedule so that you can still go last.

Question Two

It’s three days prior to your presentation. You learn from the internal contact at your client/prospect that several additional members of their team will take part in your presentation. What might you do to reduce your risk in this situation?

In this situation it is important that you seek an opportunity to speak to each new member of their team by telephone. We call it “poll the group.” Sharing five to ten minutes with team members you have not met allows you to gauge their communication styles, to better understand what they are looking for from your presentation and to learn what you can do to provide value over and above the solutions you bring to the table. Simply by asking what they want from your time together puts you in a better position to connect on a human level. One comment from an unexpected attendee might be enough to tip the sale in your favor.

Let’s be clear. This phone call is not the time to deliver a sales pitch and you are not asking if they are leaning toward doing business with one bank or another. It is simply a transparent way of showing that you value their input.

Question Three

How do you get and keep participants engaged in your presentation?

Your presentations will likely not last more than 60 minutes and in many cases they are one-on-one. That does not eliminate the need to keep that pre-client’s attention attached to the issue at hand versus taking a short mind-trip to Miami.

This all begins and ends with your document. We are fascinated when we see the generic sales documents bankers use to attempt to communicate a one-to-one solution. We’re more shocked when we see the bank’s pricing in the main document. In our coaching practice, we’ve actually seen the banker start the presentation by handing the document (and control of the presentation) over to the buyer. What are they thinking?

We suggest creating two documents. The first outlines the buyer’s objectives, perhaps a current overview of some issues in the industry, bullet points about the solutions you have crafted and some client testimonials on the last page of the overview. That way when the pre-client turns to the last page to see your pricing, they will only see great things about your bank and the banker.

The second document is cradled in your brief case and only sees the light of day at the conclusion of the presentation. That is where the investment considerations are housed–the term sheet and pricing if you will. We even suggest you title the second document “Investment Considerations.”

The process of turning presentations into presentainments is no easy task. It requires preparation, collaboration and customization. We welcome your thoughts on the three questions above or any issues related to this subject. Send them to: jhubbard@stmeyerandhubbard.com.

Rules to Break, Laws to Follow…A Book Review

Don Peppers and Martha Rogers are the founders of the 1to1® movement. Their last best seller, Return on Customer, challenges companies to measure success through their greatest assets, the customers. Their new book, Rules to Break and Laws to Follow, surpasses that previous effort. This is a must-read for Directors, CEOs, CMOs and anyone else that takes a marathon-like view of the bank. The theme that runs through each chapter is the Crisis of Short-Termism and how the all-consuming drive for quarter over quarter results causes associates at all levels to do the wrong things for the customers.

In 257 pages the reader understands three key rules to break including:

• Current sales and profit is the best measure of business success
  
• You can always get more customers with the right sales and marketing efforts
  
• Differentiated products and services create company value

Value, trust, engagement and innovation are dealt with in a practical, straightforward manner. The many new Laws to Follow help create a long-range Performance Pathway to follow that leads to a total win-win. In this challenging economy, Rules to Break and Laws to Follow should be part of your customer-focused strategy in 2008 and well beyond.

Summer Means Guest Columns, Not a Vacation

During the summer months, many companies either suspend their newsletters or throw re-runs at readers. Productivity is a 12-month deal, so we continue to publish and we write new stuff. Starting in May, we’re asking experts to take over the main column and provide their unique perspectives on key issues we face as bankers and sales professionals. Here’s the line-up for upcoming editions:

May 2008
John Ryan and Associates provide their perspective on in-branch merchandising

June 2008
First Research, inc. takes a spin with Industry Intelligence gone mobile

July 2008
Bruce Clapp, President of MarketMatch, and Nick Vaglio, Vice President/Commercial Marketing at Wachovia Corporation, launch their new book, Shift Happens, and will outline key issues around what it takes to be a CMO in this dynamic environment

August 2008
Ron Buck, Chairman of the Center for Excellence, unveils his year-long study of the key behaviors that set best-of-breed business bankers apart from the rest of the pack.

Conversations with Prospects…More Than a Book; It’s a Workstyle

“I heard you speak about TAPS and the book at an RMA Chapter meeting. As a long time banker I was skeptical to say the least. I had nothing to lose though, so I tried it. I used the process 10 times and generated 5 appointments. These weren’t initial appointments with just anyone. These were business owners that had blown me off for years. A 50% hit rate? I’m sold. Thanks for creating this amazing approach to prospecting.”

Want to get in on the action and get appointments with targeted pre-clients? Order your copy of Conversations with Prospects now by clicking on the book icon above or by visiting www.stmeyerandhubbard.com.

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