Why XX Should Mark the Spot of Your Banking Outreach

banking new england jan feb bruce paul
Image Source: Banking New England Jan/Feb 2019

In the latest issue of Banking New England, Bruce Paul discusses why community banks and credit unions need to make sure they are doing what they should to cultivate female customers.

Banking New England takes a look at both the importance of women as bank customers and how banks can solve the gender problem in leadership.

Customer Experience Solutions analyzed over a half million reviews from men and women to discover differences by gender in banking across the region.

Read the full article in Banking New England Jan/Feb 2019.

Customer Experience Solutions Benchmarks Highlighted in Banking Mid Atlantic

As the most recent banking benchmarks reflect, the most important differentiator community banks and credit unions have is their ability to deliver an excellent customer experience. When bank customers feel valued, listened to, and cared about at their bank, not even better rates can pull them away. Unfortunately, only a little more than one-third of the banking customers surveyed (over one million responses) are “highly loyal.”

This means two-thirds of banking customers throughout the northeast market are looking for a new bank. To make sure your customers aren’t the ones looking – and to attract the ones who are looking – you need to understand what your customers and prospects think of your bank.

New benchmarks are now available – request yours now.

Read the highlights about New Jersey’s and Pennsylvania’s banking benchmarks in the winter 2019 edition of Banking Mid Atlantic.

 

 

Competing for Customers, Community-Bank Style

competing community bank styleIn the battle for wooing banking customers, large banks are starting to lose out to community banks. It’s no longer the lowest interest rates that get people in the door; customers must be able to trust who they’re banking with. Banking is becoming significantly more competitive, with a customer base that desires an experience over a service, and larger banks are having a more difficult time adjusting.

Competitive rates don’t sell.

In a banking industry that now offers accessibility to consumers nationwide, competitive rates are no longer the biggest competitive advantage. When everyone offers competitive rates, the interest on loans or deposits are not as much of a driving force as they used to be.

Consumers seek financial partners.

Delivering on banking technology is a given, but community banks can leverage what has always been a bestseller: relationships. Community banks and credit unions can offer loans to consumers that big banks may not be able to offer. More than that, community banks and credit unions offer mutual trust. Customers are able to walk into a local branch and speak with a trusted adviser – possibly even a neighbor – about how to best invest an inheritance or whether to refinance their home.

Customer relationships are the winning ticket.

Community banks know the needs of their customers and can better serve them as a result. Cross-selling bank services to consumers that are already loyal significantly lowers customer-acquisition costs and boosts your reputation as a reliable banker. Consumers respond to convenience, but they also seek value in the services they are receiving. Tailoring services directly to consumers is how community banks stay relevant.

Stay true to your brand.

It can be tempting to copy the marketing strategy of larger banks, but that won’t maintain existing customers or attract new customers when there are so many options available. You need to find what makes your community bank unique and use that as your competitive edge. Seek out benefits, beyond low interest rates, that will peak the interests of consumers – and understand who you’re trying to connect with in your community.

Pricing structures, fees, and products must be relevant to those you serve, but you also must have a differentiator. Community banks can offer more personalized services that resonate with individual customers, luring them away from larger banks.

There is enormous opportunity for you to grow your community bank or credit union, but it starts with knowing what existing customers and prospects think of you compared to your competitors. Take action now and request our benchmark study for your region.

7 Secrets to Providing a Better Community Bank Customer Experience

Technology has done much to level the playing field between big banks and small community banks and credit unions. Digital interfaces are available to every business, regardless of size, which leaves the battle over customers to be fought in a different realm. It is customer experience that is more important than ever, and community banks need to leverage from these 7 secrets, to gain advantage over the competition.

  1. Don’t fear technology.

Big banks have done the hard work of mainstreaming technology, so don’t let this be your downfall. Technology assists in providing customers with the integrated experience they expect from businesses, and your bank is no different. Even the smallest bank or credit union is more than capable of capitalizing on the software that is available in the marketplace.

  1. Unify all touch-points.

The customer experience is not linear. Customers may complete a single financial task using multiple touch-points, and they all must connect seamlessly. Those who use your bank should be able to access their balances easily via mobile app, discuss financial decisions with an expert by phone or at a physical branch, and keep track of their finances on a desktop computer. Every form of communication needs to be instantly responsive to the needs of every customer.

  1. Create a comfortable atmosphere.

Digital components to your community bank are crucial, but the atmosphere of your physical locations still matters. Even as you integrate each touch-point, you  want to avoid making your community bank feel like a sterile government office. When your customers do pop in, they want to feel welcomed. Lighting makes a huge difference, and you could easily swap stiff chairs for comfortable couches and friendly décor.  Some leading institutions are even experimenting with olfactory ambiance to help customers feel more comfortable.

  1. Empower through training.

Staff training is often what makes the difference between a growing business and a dwindling one.  When we interview hundreds of thousands of banking customers, we learn that poor staff training is typically the #1 or #2 reason that people decide to switch banks.   When your employees have and understand all the relevant product and service information about your community bank, they can better serve your customers. Staff should be able to answer customer questions, and with a solid understanding of existing technology, your staff can teach customers how to search for answers that they don’t readily have.

  1. Build a culture of customer service.

When the customer is central to every process, your staff can provide superior customer experience. This tenet starts at the top, with upper-management implementing processes that enable frontline staff to solve issues immediately for customers, rather than always having to refer the problem to a manager.  Our surveys reveal that 27% of customers report getting the runaround when trying to get questions answered.  For businesses, this increases to 35%.  And in both cases, getting the runaround is a major reason households and businesses tell us they might switch banks.  If you prioritize the customer and their experience from every angle, you achieve an approach that naturally eliminates most of the problems they face.

  1. Personalize your service.

Your overall infrastructure may be amazing, but customers need help marrying their needs to your products and services. It is not a case of “If you build it, they will come.”  Community banks are in an amazing position to be able to learn about the unique needs of their patrons, and then provide them with the tools and advice to meet those needs. A familiar smile, remembering their names, and recalling that they are in the process of purchasing a home, for instance, can build lifelong relationships.

  1. Contribute to the community.

The customer experience is driven by your involvement in the community. Many customers want to know that you are aware of what is relevant to those that live there. Sponsor local teams and celebrate regional traditions. Reinforce that you are an important part of the community.  This will improve your own customer loyalty and will actually attract more business, especially from middle market and small businesses in your area.  And do not feel shy about promoting your good works.  Our surveys show that when a community contribution is accompanied by marketing spend to promote it, the impact to the bottom line can grow by more than 350%.

Community banks and credit unions have unique strengths. If you want to offer a truly impactful customer experience, you have to offer personalization that is also convenient. Your frontline staff must be fully trained and confident enough to offer financial knowledge in addition to providing account services.  Your electronic banking should be an extension of that service, not a replacement for it.   A concerted, thoughtful examination of your processes, and more importantly, an unblinking understanding of your current customers’ opinions of the bank will enable you to excel beyond your peers.