The year 2010 marks the seventh year for Conversation Signposts. The idea behind this monthly newsletter belongs to a great friend of our company, Brian O’Connor, Managing Director of Premier Banking at Citizens Bank. Brian thought our clients might have some interest in hearing what our team has to say every once in a while. Who knew that Brian’s inspiration could grow to a monthly audience of more than 15,500? Sales managers use the rants from time to time as sales meeting topics. Sales producers enjoy the practical ideas we present. With the addition of Ron Buck’s occasional columns, senior executives gain insights around Onboarding, Scorecarding and CRM issues.
In February we roll out our 2010 Business Banking Study survey. This will result in a White Paper to be released in the spring. We continue our Virtual Learning Lab series in 2010 too. Below is a link to the highly rated program about purchasing sales training held on January 15. Dave Stein was our presenter for that one. Dave is CEO of ES Research and his ideas are spot on.
http://www.stmeyerandhubbard.com/register.php
To listen to the program, click on the link and register to become a member. You can then hear the presentation for free. If your organization is in a mode to purchase sales training this year, it will truly benefit from Dave’s expertise and no nonsense approach.
Thanks for reading Conversation Signposts and let us know if there is something we can do to make it better.
Smarketing, Pitchbooks, and Proposals Rant (Part Two)
By The Rantmaster (aka Jack Hubbard)
In the November 2009 edition of Signposts I ranted about a Pitchbook I had received in the mail from a banker asking for feedback. If you missed it, the link to that edition is below. This month we’ll talk about the look of the pitchbook. In February we’ll discuss the process of presentainment – making the pitchbook come to life.
Click here to read November's Issue
Used correctly the pitchbook is a dynamic tool that supports the features and benefits of your solution. Done poorly or distributed at the wrong time and it falls flat…it falls into the trash.
There are really two parts to the pitchbook; the solutions portion and the priced proposal. Too often the bank puts these two components into one document. While I do believe in total transparency, it is (my opinion) a terrible idea to have pricing in the pitchbook. Why? Simple. The buyer has been educated by our industry that our pricing is typically on the last page of the document so they always go to that page first. When that occurs you are already in a cost justification mode versus being able to show the benefits of your service without price rearing its ugly head. Keep your priced proposal in your briefcase and distribute it when the presentainment is finished and the buying signal questions have been answered. On the last page of the pitchbook put…stay with me, we’ll get to that.
Print the pitchbook in color – no ifs, ands or buts. C’mon, color printers are less than $300 and it’s important for you to look your best. Printing the thing in color may not win the business for you, but a black and white copy might make you look too small to handle the relationship.
Work with your marketing team or agency and develop a cover that mirrors your brand – one that is consistent across your footprint and divisions. We know of large banks that have six or seven different pitchbooks depending on the division. Imagine if two or three of them are presenting to the same prospect at the same time. Talk about confusing.
Leave room for a customized title and make certain your logo and the logo of the prospect/client/COI is placed on the cover as well. The title is easily created by looking at the buyer’s website. Take something from their slogan/brand, link it to your solutions and put that phrase on the title page . Our tagline for example is; bringing performance to life and life to performance. If a bank were presenting to us, perhaps the title could be; Bringing Performance to Your Banking Partnership. Small stuff? Think what you want but your competitor likely has a few hundred generic covers printed they can’t customize. You, therefore, stand out.
The next page might have a Table of Contents. Not only does it make things easy to find, it is a professional way to introduce your resources.
Next is where most financial services firms make a mistake. In every pitchbook I have ever seen, the next several pages are all about the bank; number of branches, size, awards won, blah, blah. Instead, how about making the first few pages about the client? Right after the Table of Contents consider a Preface Page. You can also call it About the XYZ Industry. Here’s where tools like First Research or RMA’s eMentor come in handy. On this Preface/About page list some 40,000 foot issues this industry is facing. Add some statistics and perhaps even a quote or paragraph from a relevant White Paper about a particular issue. One page – that’s all. This suggests to the potential buyer that you have done some homework, that you have knowledge of the industry and that your organization is truly about 1 to 1.
The next page is titled What You Told Us. Here is where you can simply place some bullets from notes you have taken over the first few calls in an organized fashion. These bullets never have your products in them. They are about the client and they support the solutions you plan to present. Here’s an actual example from one community bank’s pitchbook:
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Client is a C Corporation that is on track for $4.5 million in revenues by yearend 2009. XYZ has 165 employees and has nearly 300 clients it serves. These are mostly locally owned firms with a smattering of national companies that have divisions in the XYZ marketplace.
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There are three separate companies in the corporation that are involved in; commercial maintenance, building renovation and painting.
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The firm’s 2010 goals include:
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Adding one new commercial maintenance client each month
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Increasing revenues by 14.2%
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Improving margins by 28%
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Reducing staff turnover from 32% to 21%
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After these introductory pages insert a separator page and place a title on it that might say “Targeted Solutions for XYZ.” Put your logo and theirs on the separator page and for a nice touch find a quote that connects to your solutions on the next several pages.
To begin the Solutions section, why not begin with the team that will service the relationship? Start with the highest ranking person on the team, then go to the RM, and always include the sales assistant. If the company uses the branch system often, include the branch manager where the company will likely do most of its business. Names, titles, direct phone numbers, e-mails – lots of ways to reach the team. I have seen some pitchbooks with short paragraphs about the experience of each team member and photos are always a nice touch.
Finally, the solutions themselves. Put one service on a page and lead with customized benefits based on what you heard on previous calls (the reasons the buyer might buy) followed by features. Graphics always add to the visual impact and consider placing a quote at the bottom of the page from a satisfied user of that product. If you can include the name of the business and the name of the person that supplied the quote, all the better. If not, generic is fine. One other mistake financial services firms make at this point is to insert a page about every service they have. Resist that temptation. This “kitchen sink” approach does not help you make the sale. Many times it acts as a detriment. Put only the number of solutions pages in the document target the primary needs of the business at. Get your nose under the tent. You can always circle back to do some cross solving.
Want to include a section about the bank? Keep it simple and targeted. If your organization has 1600 locations or 52 the likelihood of the buyer using more than 1 or 2 is slim. So mention you have some locations and then make the document more tailored by including a Google map with the locations of the three closest branches as measured from the buyer’s office. Safety and soundness is a key these days and if you have some solid numbers from a ratings agency to show, that’s not a bad idea. But to go into page after page with blather about the bank may be overkill. If the buyer wants more information (you’ll know if you ask during the presentainment) you can always get it for him or her as a follow up.
The final page is typically where the numbers are and that is many times where the buyer goes first. In that case, why not let them see a benefit of doing business with you? Your last page therefore can be a list of three testimonials with brief paragraphs about why each firm does business with you. Get permission of these businesses to use their logo and include the name of the owner/CFO and their direct telephone number.
How many pages should this document be? Depends on how many services you plan to present. Our documents tend to be 10-12 pages. Less is more. Use a readable typeface on the and graphics and quotes add a visual impact.
The proposal? Keep your powder dry by having a separate document for this. Keep it in your briefcase until the time is right. Use a cover page that mirrors the pitchbook and then insert your commitment letter, numbers, whatever document you use to show the investment considerations for your solution.
Yep, this process takes time and if you use an outside firm, it might cost some money. Creating the template takes the most energy. Once that is done it becomes a fairly easy task to tailor the document based on the situation at hand. I am always asked about when to use the pitchbook. My answer is simple. If the opportunity is important enough to call on in the first place, do your best to show your best and create a pitchbook for every situation. One never knows who the buyer is related to and if they might show that thing to someone else – at a bigger company, to their CPA or other trusted advisor.
Make a resolution in 2010. Resolve that when you make your pitch, it is one that the buyer wants to catch.
Getting a Kick Out of Performance Reviews
By: David Barksdale,
Executive Vice President, NewBridge Bank
Editors Note: We’ve known David Barksdale for nearly 15 years. An outstanding professional, David is the Chief Banking Officer of NewBridge Bank, a 25-branch, $2billion operation in North Carolina. From time to time, David pens some ideas for his staff related to sales, leadership, coaching and other topics. Since this is Performance Appraisal season, we thought readers might get a “kick” out of the article below. Thanks for the contribution, David.
My wife and I spend lots of weekends on the sidelines of soccer fields watching our 13-year old daughter’s team, the Twins. I have never played the game and don’t understand it all that well. That stated, I can say (I think) that Emma James’ team is pretty good—she obviously inherited none of her ability from her mother or me.
This year, her coach is Paul. Paul is from England, where they call the sport football and eat a lot of fish and chips. Paul is not what I would call a Bobby Knight, in-your-face coach. He gives players feedback during the games, but most of it is done when they are on the sidelines instead of when they are on the field. In other words, the team has created a game plan and he lets them execute without constantly second guessing or looking over their shoulder.
Obviously, for the Twins and for any organization, day-to-day coaching is important if ongoing improvement is expected. The Twins want to win; NewBridge Bank and the rest of your organizations want to as well. Let’s all play better, and we will win more often. Got it?
Recently we experienced a second phase of coaching. This one involved not only the player but her parents. We (mom and dad) received a written evaluation about a month ago. There were six major categories (technical, attacking, defending, etc.) and each category had three to seven skills (passing short, speed of play, teamwork, etc.). Paul then graded Emma James on each category using an eight point scale. OK—that is fine. Fill out the forms. (Our performance reviews have fewer categories and a smaller grading scale.)
The verbal part of the evaluation intrigued me. Paul spent 30 minutes with us discussing the evaluation. We have about 16 players on our team; plus, Paul coaches multiple teams. So, investing 30 minutes with us is quite a commitment in the scheme of things. Paul went over every category, pointing out Emma James’ strengths and areas for improvement. He then gave her ideas of some specific things that she can do to improve her play. We left the meeting knowing exactly how EJ is doing and we were armed with a targeted Action Plan as to what she needs to do to get better. Improve her behaviors within certain key soccer activities and improved results are likely to follow.
The early part of the year is many times “performance review season” for our industry. Part of our FY10 Operating Plan is to get better at this process. Using Paul as an example, here are a few things we plan to consider as we conduct our 2009 reviews:
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Honest grading. EJ’s team is pretty good; they finished #2 in the state last year. Plus, Paul likes EJ; she is fun to be around and does not cause him a lot of headaches by spraying silly string on him or texting during the game. That said, the evaluation was very honest and objective—brutally honest, one might say. There were a couple of 1’s (high marks), but there were several 6’s and a 7 (8 point scale, remember). She is good, nice, and all those things…but the standard is high. Too often we are willing to give everyone on our team a 3 – on a five point scale. That way no one is angry and we minimize hurt feelings. Paul doesn’t want to hurt EJ, he wants to HELP her get better.
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Pinpointed things to work on. Emma James has to get better at the technical aspect of the game—long passes, heading, first touch. We left the meeting knowing exactly the areas to improve. Do your teammates leave performance reviews feeling good but still wondering what they need to do better?
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Action Planning and accountability. In addition to knowing what she needs to work on, EJ also knows what she needs to do (the action steps/behaviors) to improve in those areas. Need to get better in calling? Go on several joint calls, take a webinar, role play with a mentor. Her mom and I are committed to helping her achieve success and therefore we plan to hold her accountable to what she agreed on in the Action Plan.
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Paint the picture for a lofty goal. Paul doesn’t know if Emma James wants to play soccer in college; he admitted as much. Emma James doesn’t know if she wants to play in college either. Mom and Dad don’t know what’s for supper, much less what college will bring. But, Paul painted the picture that, if you do have aspirations or if you think that you may, some day, have such aspirations, here is what you do to get there.
Mom and Dad were apprehensive going into the evaluation. She is a 13-year old, for crying out loud. We left feeling very good about the job Paul is doing and the feedback he provided to EJ. Can we take some of this in incorporate it into our Performance Review process? I hope so.
Jack Hubbard Named to St. Charles Bank & Trust Board of Directors
St. Charles Bank & Trust proudly announces the newest addition to its Board of Directors, Jack Hubbard.
“We feel extremely fortunate to have one of the most influential members of the financial services community join our Board of Directors,” said Rich Davis, Chairman & CEO of St. Charles Bank & Trust. “We look forward to greatly benefitting from Jack’s insight and experience.”
A lifetime resident of Elgin, Illinois, Hubbard is a prolific trainer and sales performance coach, having worked with more than 62,000 bankers over the past three decades. He returns in 2010 for his 25th year on the faculty of ABA’s School of Bank Marketing and Management. Additionally, he is an instructor at the prestigious Stonier Graduate School of Banking, ABA’s National Commercial Lending School, ABA’s Graduate Commercial Lending School, Southwest Graduate School of Banking and the North Carolina School of Banking. He is a regular presenter for national conferences and workshops sponsored by leading national and state associations.
Hubbard’s articles regularly appear in such industry publications as “Selling Power,” “The American Banker,” “Financial Services Marketing,” “ABA Bank Marketing Journal,” “Commercial Lending Review,” and “RMA Journal.” The company’s bestselling book Conversations with Prospects has forever changed the landscape of prospecting in the banking industry.
“This is a very proud moment for me personally and for St. Meyer & Hubbard,” indicated Hubbard. “I look forward to many years of service to St. Charles Bank & Trust and I appreciate their confidence in electing me to its Board of Directors.”
St. Charles Bank & Trust is a $250million community bank with two locations; 411 W. Main Street in St. Charles and 2401 Kaneville Rd. in Geneva. The bank is one of 15 affiliates of Wintrust Financial, a financial services holding company based in Lake Forest, Illinois, with assets above $12 billion.
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