In the ever-evolving landscape of financial services, community banks are facing increased competition, challenging their traditional methods of customer acquisition. Recognizing the need for change, many community banks are shifting gears and adopting a more proactive approach to sales culture.
- The Changing Landscape
Traditionally, community banks operated under the belief that customers would come to them when in need of financial services. However, this passive approach is no longer effective in a market where customers have a multitude of options. To address this shift, community banks are embracing a more aggressive stance, aiming to take business away from competitors and secure a more significant market share.
- First Bank’s Bold Move in Alaska
First Bank in Ketchikan, Alaska, led by CEO Bill Moran, embarked on a transformative journey by implementing a 120-day action plan in 2006. The primary focus was on gaining new customers and establishing fresh relationships, breaking away from the comfort of dealing with existing clients. The bank assessed the sales strengths of its team members, identifying “Hunters” who excel in building relationships and “Farmers” with strong service-related skills.
The key to their success lay in professional sales skills training, empowering team members to make cold calls, qualify prospects, and build trust. Regular progress meetings ensured accountability and created a platform for sharing experiences and insights. Despite initial challenges, the program resulted in capturing several new customers, contributing over $300,000 in new income to the bank’s bottom line, with an impressive 30-to-1 return on investment.
- Bank Iowa’s Sales Culture Transformation
Bank Iowa Corporation, a bank holding company serving 17 communities, recognized the need for a sales culture across its independently chartered banks. With a history devoid of sales training, the company’s leadership, including CEO Stan Honken, set a goal for each bank to have an officer calling program in place by year-end.
Bank Iowa enlisted the expertise of Wemmers Consulting Group from Atlanta, impressed by their program’s accountability factors and real-world application following skills training. The Calling Teams, comprising both Hunters and Farmers, aimed to get bank representatives out from behind their desks and actively calling on prospects. Bi-weekly progress meetings addressed challenges and allowed for continuous improvement.
The 60-day effort by Bank Iowa resulted in approximately $13 million in new business, translating to around $400,000 in new income. The return on investment, after accounting for sales program expenses, stood at an impressive 23%.
- Conclusion
These success stories underscore the importance of building a financial services sales culture in the face of evolving market dynamics. Community banks must embrace a proactive approach, combining sales skills training with ongoing coaching and accountability. The results speak for themselves, with significant returns on investment and the acquisition of new customers. As the financial services landscape continues to change, cultivating a sales culture becomes not just a strategic choice but a necessity for sustainable growth and competitiveness.
