The best of the best of the best!
This is the big lie in community banking… We’re the best! Ask most community bankers about their bank, their people and their service and you will be told they provide the best service and we have the best people. The problem is, you can think it and you can say it but the facts don’t lie. 90% of community banks are no better than the typical big bank. When saying you’re the best, how do you quantify that statement? Is it a feeling or do you actually score it and track it?
A recent research study revealed that the number of community bank charters have decreased by over 50% in the last 10 years and that community banks’ net asset growth has trailed other banks by almost 300% in the past 10 years. Read the research and then listen to the comments from so many community bankers claiming that they give the best service and have the best people. It’s time for community bankers to get their heads out of the sand, understand the reality of the banking world they live in, and stop living the big lie of being the best. Those that continue to say and believe in this lie will be the next 50% to fade away within 10 years. Either this research is wrong and our own research and documentation is flawed or the majority of community banks have bought into this lie. Here are a few other dirty little lies in the community banking world that feed into this big lie.
It’s the Marketing Director’s fault we can’t sell
When all else fails, blame the Marketing Director! The best people never pass the blame, they find solutions, and they produce. We see and hear the “blame the marketing” excuse on a weekly basis. My sales are down because I don’t have the marketing materials I need; or I need better marketing materials; or I need a stronger social media presence. You name it, we’ve heard it. First off, we’re not saying you don’t need effective marketing. What we are saying is that you don’t need to be as fancy a Bank of America with your marketing because you’ll go broke trying trying to keep up and it’s completely unnecessary in order to win the business. The reality is that there is a 99% chance your problem is not marketing. Instead, your problem is the employee that supposedly can’t sell unless he has the latest and greatest brochures, signage and give-a-ways. Or, the sales manager that excuses a lack of sales on marketing. This sales manager is a glowing example of the Peter Principle (being promoted to a level above one’s competency). When you hear this excuse, just know that you are listening to a person that is nowhere near the best. Don’t buy into this lie.
We deliver on our brand promise
90% of community bankers will tell you their bank gives great service. In fact, most will have a brand promise highlighted on their website for all to see. It’s smart to have a brand but it’s incredibly stupid not to check it. Less than 10% actually deliver on that promise. Don’t believe it? Just have someone call your bank and ask for CD rates. Odds are, the employee will be friendly, but less than 5% will be conversational in order to uncover additional needs or opportunities in order to best help the caller. Most will just give the rate and get the caller off the phone. If you’re not monitoring your phones, you can’t possibly have an accurate account of your customer service and brand delivery. You’ll just see what your employees want you to see when you happen to be walking by. If you want to know it you need to check it.
Example from just a few days ago: We mystery phone shopped a community bank in South Carolina as part of a competitor shop. The employee was polite and had a nice greeting. I asked for the 1-year CD rate. She asked me to hold for “just a moment”. She didn’t give a reason so I just figured she was with someone or finishing her snack or on personal call. Three minutes later I was transferred directly to another employee’s voicemail.
The website branding for this bank states, “Great Rates Exceptional Service”. The CEO writes a few other bold claims on their website. The employee was polite and had a nice greeting but the call went quickly downhill from there. I’m sure the CEO of this bank truly believes his bank is exceptional but it’s best not to put it in print unless you’re going to monitor it to ensure that your claims are true. In this case, it was a lie.
Don’t live the lie
The big banks and many of the experts believe the community bank is a dying entity. We agree to an extent. Many community banks are content with living in the lie until the bitter end. We believe this downward trend, shown in the research, will continue. Great news though! The best community banks, the top 10% will not only survive, they will thrive. In fact, they are thriving right now and will continue to do so. These banks make no assumptions of how great they are. They monitor their brand delivery, they hold all employees accountable to standards of excellence and they focus on relationships. These “best” community banks understand where they can win in the face of the regulatory and big bank world. The win is in the best people and the best service. They also understand that they must hold employees accountable to the highest standard and they must confirm the delivery of the best service. Most who read this will believe they are one of the “best” community banks. Base your belief on reality and prove it.
