Community banks losing their competitive advantage?
Ask most community banks what separates them from the competition or the big banks and the typical answer is “our service” or “our people”. Regardless of the answer or how your bank feels about its service, a reality check is always provided with a telephone mystery shop. A quality shop will show if compliance standards are being met, if basic sales opportunities are being recognized, if employees are taking a relational approach to their conversations, and if your bank’s phone standards have been 
implemented at the customer level.
How did the banks stack up?
Each year SCMG shops hundreds of community banks across the US for customer service. This provides incredible insight as to which community banks are performing at peak levels and which are barely treading water to survive. One of the services we provide to banks is to help monitor their customer service and deliver training to improve both customer relations and profitability.
Our final shops in 2015 focused on the Houston market. The survey included shops of twenty-seven (27) banks including both community banks and big banks. Two banks scored an “A” in customer service in the Houston market. One was a community bank and the other a larger regional bank. The following is a breakdown of what the scores indicate:
A+ = Actively Engaged
A = Engaged
B = Somewhat Engaged
C = Order-Taker
D = Disengaged
F = Actively Disengaged
The Highlights
Our shopper had $40,000 to invest and was open to other options that may be available. When calling each bank, he inquired about a 1-year CD rate. Out of the 27 banks, only 4 asked for the caller’s name, 6 asked if the caller was a customer, and 3 asked for the amount the caller wanted to invest. As the calls progressed and came to an end, only 1 employee used the opportunity to promote other products, 1 directed the caller to the bank’s website for more information and 6 invited the caller to the branch. Imagine the lost opportunities over the course of a month due to poorly handled calls. Finally, out of all the banks shopped, 62.9% of banks were out of compliance!
Congratulations to Spirit of Texas Bank and Amegy Bank for ranking at the top of their market. They have set themselves apart from the other banks in their market. Find out where your bank’s weak spots are and implement basic standards and a process to join the top tier in customer service. Regardless of where your bank ranked in this survey, we know that with the right training, mystery shopping, and coaching, any bank can quickly move into the top 10% of their market in customer service.
If your bank was one of the 27 banks in the survey and you would like to learn more about your score or listen to the recorded shop, let us know.
