I remember the scene in Miracle on 34th St. where the Santa Clause tells a parent to visit a competing store for a product because it’s cheaper and of a better quality there. Hey, it’s all good in a Christmas movie or even in real life when you’re talking about a simple product and the customers can still buy the majority of their products with your business. However, when it comes to a banking relationship, we would strongly advise against telling your customers or potential customers to get their home loan at another bank. However, this is what we’re seeing in some cases. It could be that you have a lazy lender that doesn’t care and just doesn’t want to spend the time getting the business and building a profitable relationship. Maybe it’s the leadership of the bank creating so many steps above any regulations that are required and being so critical of any business development activity that the lender figures… why bother! It’s not worth the trouble.
Think about this… even if your officers aren’t specifically telling customers to go to the competition, their actions often tell the customer the same thing.
- Is the officer taking the time to have a conversation with potential customers calling in to the bank?
- Is the officer going outside the bank to meet people and build business?
- Does the officer have a business development plan or outbound calling plan?
- Does the officer give referrals to customers and does she consistently receive referrals from advocates?
If you’re an officer and you answered no to any or all of these questions then you’re in the process of relocating your bank to Elm St. If you’re a leader in your bank and either you don’t know this about your officers or you do know but you’re not doing anything about it, then get ready because Elm St. is just around the corner and the nightmare is about to begin!
What is your bank recommending to the customers? Don’t know? Have your spouse or a friend call your branches to ask for a home loan or refinance information. You might be shocked at what you hear. Take time to figure out where you stand now and have a Merry Christmas in five months or do nothing and get ready for a Nightmare on Elm St. in 2013.
