Building B2B Client Loyalty and Increasing Wallet Share

Audio-VisualSponsored by:

B ildi g B2B Cli t Building B2B Client Loyalty and Increasing Loyalty and Increasing Wallet ShareWallet ShareBuck Bierly, President & Founder, Bierly Consulting

2013 Annual Conference for Bank Presidents, Senior Officers & DirectorsWaves of Change. Oceans of Opportunity.

Building Client Loyalty and I i W ll t ShIncreasing Wallet Share

Developing StrongBusiness Banking Relationshipsg p

MZ BIERLY CONSULTING

March 2013Version 4

2

We are assuming

Building Loyalty, Increasing Wallet Share

We are assuming. . .

Your bank is active with the businesses in your ycommunity.

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.


g

3

Building “Strong” Commercial Banking


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

Keeping it simple


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?


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?


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)


COIs)

7

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 ’ tiMZ BIERLY CONSULTING

This. . . is what we’re executing.8

1 A Defined Market Development Process

A Market Development Process focuses on 4 sets of

1. A Defined Market Development Process

pRelationships.

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)


)

9Other examples and definitions are shown in your handouts

The Market Development Process. . .f

50% Reactive 50% Proactive

A Model for Market Focus

Transactions Leads

It Balances the Proactiveand Reactive Activity within Your MarketYour Market.


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

gproactive 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.


y g

11

Resources Most Often Relied on for Advice on Addressing Business Issues B i C i l

Where do You Stand?

Resource BusinessBanking

CommercialBanking

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%yAccountant 16% 11%Commercial Banker 10% 4%Lawyer 3% 3%Investment Banker 2% 1%Other 9% 6%


Other 9% 6%

Greenwich Market Pulse, July 2012 12

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 marketplaceHighly effective in proactive situations

Product Acumen is important in reactive situations

Less of a differentiator in proactive situations


What are Decision Makers Looking for?

Building “Loyal and Deep” Relationshipsg

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.


Building a “Default” Value PropositionBuilding a Default Value PropositionValue Driver = What the Decision Maker is “looking for”

5

4

3

2


1

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


qAcumen!!

16

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).


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


Extrinsic Motivation, Consistent Messaging

Extrinsically motivated Bankers monitor their environment for clues and cues to determine

what is acceptable behavior andthen respond accordingly.p g y


Vertically Aligned Messaging of the PrioritiesVertically Aligned Messaging of the Priorities

1. Prioritizing the MessagesHave you prioritized the messages?Are you staying on the prioritized messages?

2. Adjusting the BehaviorsHave you assessed the skill sets?Have you built a coaching plan?Are you “formally” coaching?

3. Adjusting the InfrastructureDoes it support the messaging you’re delivering?D it t th b h i t?


Does it support the behaviors you want?

4 Vertical Accountability for “Executing” the4. Vertical Accountability for Executing the Articulated Processes Every Week(led by the Executive Suite)( y )

Consistent Execution means continually Co s ste t ecut o ea s co t ua yprioritizing the Messages. . .

Monday Morning Sales Meetings


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


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)


This. . . is what we’re leading.23

The 5 Key DriversThe 5 Key Drivers

This. . . is what we’re leading.


Building B2B Client Loyalty and Increasing Wallet Share

Business

Transcript of Building B2B Client Loyalty and Increasing Wallet Share