How to Be the Pink Zebra in a Black & White Crowd

Do you want to stand out from your competitors – to be the pink zebra in a black & white crowd? How about providing a customer experience your competition can’t match?  From products designed for what your customers need to the customer contact that builds the relationship.

First – you need to look at what really matters to your target customers? Step back and look at what you have to offer from the customer’s viewpoint.

Second - don’t try to mold your customers to your product, but mold the product to your customer’s needs.

Third - look at what your customer’s experience in the delivery and follow up. Use this perspective to make improvements and manage the experience.

Whether it’s your product offering, the customer touch points, or your brand, learn which part of the customer experience is important to each segment of your target market and differentiate your products and delivery accordingly.

Our upcoming Brown Bag webinar this Friday highlights a Midwestern bank that has done just that. They have framed their products, delivery and customer experience to the customer. Register to join our free session at 1:00 EST on Friday, March 16, 2012 and see what one financial institution has done to stand out from the crowd.

Until next time,
Melissa

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There are three types of people in this world: those who make things happen, those who watch things happen and those who wonder what happened. ~ Mary Kay Ash

MarketMatch is a full-service marketing consulting firm, dedicated to the credit union and community banking community.  We utilize knowledge-based strategies to help you FOCUS on the efforts that will generate MOMENTUM and yield the greatest RESULTS for your bottom line.

Increase Revenue with Increased Experience

A recent Forrester Research report looked at 13 different industries and came to the conclusion that as a customer's experience (CxPi) with your company increases, so does revenue, specifically in the areas of:

• Incremental purchases from existing customers
• Retention
• New sales from word-of-mouth

OK, not really rocket science, but it shows that there is ROI in employee engagement.

According to Forrester, the banking industry was more effected by positive customer experience than all others in the area of retention. In banking, an increase in positive customer experience yields a higher rate of change in attrition than all other industries. In a time when customers are changing institutions at a significantly higher level - this becomes an important finding.

Want to put some hard numbers to customer experience? According to Forrester's report, the banking industry can expect a total annual impact averaging $21.20 per customer by improving your customer experience - with more than half of the impact coming from reduced attrition.

So, increased customer experience equals increased revenue - you can't argue with the logic. But we have some work to do. Credit unions ranked in the Top 10 of Forrester's 2010 Customers Experience Rankings with only 3 banks in the top 50. How do we improve?

• Create written Customer Service Standards for the entire company to follow.
• Relook at your sales process - do you speak "to" the customer or "at" them. Create a process that facilitates a CONVERSATION with the customer - then addresses their needs.
• Relook at your sales materials. Are they benefit oriented.
• Follow-up is key. Call it on-boarding, re-boarding or just doing your job. But the best experience a customer has with you can be out of your branch and in their home. Set standards and create a process to add value-based communication with your customers.
• Consistent training. Customer engagement is a culture, not a program. It starts with a new hire and continues every-day. Your staff must be engaged and understand that we are dealing with people's money. And when it comes to money, a little empathy, understanding and advise can go a long way!
• Talk to them. Before you make changes to your organization, talk to your customers and determine their needs.
• Let them have it their way. Whenever possible, let the customer create their own product. More and more institutions are turning to a build-your-own checking product. If not that, then package your products in a way that looks tailored to them.
• Measure your success. Start with baselines in: Attrition, services per household and average balances. Then track your progress regularly.

A positive customer experience can differentiate you in a competitive market place and generate incremental revenue. It can grow your institution organically and reduce attrition.

Want to chat about your customer experience culture? Call us.

Take care,

Eric

egagliano@MarketMatch.com

866-501-2233, ext. 106

Lend an Ear to Complaints

As marketers, we focus on creating a positive customer/member experience, but unfortunately sometimes people still get upset over a fee, service issue, etc. And when customers/members are unhappy, they are 5-20 times more likely to share a bad experience than they are to spread good news.

And with the increasing popularity of social media, sharing a negative experience is easier than ever.

Take this customer for example…

A Philadelphia Bank of America customer was upset over a series of charges. The customer lived across from the BoA branch and hung a larger banner on his building reading, “I Hate Bank of America.” His story caught the attention of local newspapers and also the local NBC station. After 7 months of having the banners displayed, the disgruntled customer took it to the Internet. He started a blog and myspace page strictly dedicated to “how much he hates Bank of America.” It has been almost 2 years since the inquiry and he is STILL posting blogs and encouraging other customers share their negative experiences.

So what can we learn from this…

Simply not responding to a complaint can generate significant negative word of mouth. Having a process in place that allows customers/members an opportunity to voice their comments and that ensures all comments receive a response will means higher satisfaction levels and less backlash. It’s all about listening to what people have to say and fostering two-way dialogue for solving problems, answering questions, recognizing suggestions and thanking compliments.

Do you have a process in place for reviewing and responding to customer/member comments in a timely manner? Clearly, your front line staff should feel empowered to fix any issues that might arise, but you can also utilize a blog or facebook page open to comments, devote a section of your website to allow customers/members to submit comments, or create a satisfaction survey.

And when you receive a comment, do something about it... listening is important, but action makes the difference!

Best,

Jamie

Competing With Internet Banks

We recently completed an RFP to rebuild a website for a prominent internet bank. Folks, if you're not including these banks in your competitive review, you should be. In a 2010 Forrester study, 2 major internet banks (USAA & ING Direct) ranked 2 & 3 (only behind credit unions) in "trust" when 4,500 banking customers where asked to rate institutions against, "My financial provider does what's best for me. not just the bottom line."

(I'll touch on this again in our FREE Brown Bag webinar on Friday, Sept. 17th)

For the internet banks, the website is everything ... it's their entire branch network, their sales force, their marketing material, etc. You need to be looking at your website in a very similar manner:

• Is your site easy to navigate? Can a customer get to where they need to be in 1-2 clicks?
• Do you make it easy to transact business?
• Does your site allow for an engaging customer conversation? You can accomplish this with online chat, but also with well thought out FAQs, Benefit oriented product bundles, video learning, electronic or personal follow-up to online triggers or forms, etc.
• Is your product information benefit oriented? How can you take product information beyond being an electronic brochure?
• Does your site cross-sell?

In 2010 and beyond, customers are looking more and more to easy, online access. Especially if you're looking to diversify your 50-60 year old demographics with some 20-somethings.

Take a closer look at your website as it relates to the questions above. How does your site stack up against the major online banks? 2011 may be a time to invest in some web enhancements.

Take care,

Eric

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Turning Problems into Positives

The "Happiest Place on Earth" may be in Florida, but there are no mice there.

To me, the happiest place on Earth is a little condo in Sarasota where my family and my sister-in-law's family get together every year for white sandy beaches, a calm pool, and a week of relaxation.

That is until this year ...

Don't get me wrong, my family still had the time of our lives, but my sister-in-law had a completely different experience ... two days without A/C in the June Florida heat.

Certainly, the blame is not on the condo, they didn't shut off the A/C on purpose. But the way the issue was handled may loose then a faithful, recurring customer. And there are lessons here for your branches. When it comes down to it, the condo's problem was a lack of leadership:

Accountability

No one accepted accountability for the A/C. What was experienced was a lot of finger pointing.

When an issue occurs at your branch, your team needs to own the problem. If the point of contact can't solve the issue, they need to work to find someone internally who can and stay with the issue until it's resolved. Do not say, "you need to talk to Sally and she's off until Tuesday."

Responsibility

What was forgotten is that the responsibility is to the customer not on the customer. Even if your institution is not at fault for the error - the perception is that you are. If the customer is unhappy, your entire team needs to work to make it better.

In the case of our condo, they expected the customer to talk directly to maintenance until the A/C was fixed.

Empowerment

Great leaders empower their team to make decisions. Otherwise, when the leader is not around, nothing gets done! Your team has to be comfortable doing what's right for the customer without the fear of second guessing. The more empowered your team, the faster customer issues will be be resolved and the better overall experience your customer will have.

The bottom line is that we can't control when the A/C will die. But we can demonstrate a sincere desire to solve our customer's problems. To me, customer issues are really customer opportunities. Some of the most memorable and positive experiences I've had with a company is when something goes wrong and the company goes above and beyond to make it right.

And so it begins...

Summer is here...

And so it begins!

The summer rush to enjoy the great outdoors, trips, family, baseball...its all about enjoying life and living each moment!  For you, your staff, AND your customers.

The need?  For you, your staff and your Bank/CU to put yourself in position to help your customers.  Debit cards, online banking, credit cards...even travelers checks.  I know, sounds very basic. However, it is also the moment of truth for you!  How?  Why?

Because you prove yourself OVER and OVER again to a customer...not just in the first 90 days, but each time they interact with you.  Do the LITTLE things well and the BIG things will come to you more often, faster and with less competition attached!

So, prepare your staff to be prepared to help your customers with the SMALL stuff...

Enjoy the start of summer...and enjoy watching your staff plant the service delivery seeds for a GREAT fall!

Cheers!

Bruce Clapp

"What Endears Endures"

Holy Cow, we can all learn a lesson from Chick-Fil-A!

With nearly half of the industry average in front-line turn-over and always packed dining rooms, Chick-Fil-A is doing something right. And any service industry - be it bank, credit union or shoe shine - can learn a significant lesson.

You see, Chick-Fil-A credits one simple reason for why they have not been effected severely by the economic downturn...

"What endears endures."

Chick-Fil-A strives to look at each customer interaction as more than a basic transaction ... it's a relationship building opportunity.

Chick-Fil-A, a fast food company, strives to be part of their customer's life. Now, many of you reading this are in the financial industry. We deal with people's money ... their mortgage ... their retirement. What could possibly be more personal and life altering?!?!

We have an opportunity, as the Grand Marketing Poo Bahs of our organizations to build these relationships and capitalize on them.

Chick-Fil-A says that they do not have to create customer stories, they only have to listen, harness them and connect them together. We can do the same, our tellers, new accounts and lending team are changing lives every day. Teach them to LISTEN and understand that what may be common place for them may be a great story. Make sure they share their stories with you.

Finally, use social media. Encourage your customers/members to share their stories with you too.

You simply need to provide your staff the tools to provide outstanding "customer experiences" (not customer service), the autonomy to do what's right and encourage them to share their stories.

Take care,

Eric

Branding ... It's Not What You Say, But What You Do.

If you don't think that you can afford to rebrand your institution in this economy, think again.

It’s all in the definition.  Yes, your brand is tied (in part) to your name, logo and visual appearance.  But it is defined by the customer experience.

To rebrand your institution properly, you need to focus less on the creative department and more on strategy and day-to-day interactions.

Check out this great article published on customerthink.com.  

Where are you in the continuum of: do-nothing; basic Customer Loyalty programs; CRM (customer relationship management) and CEM (Customer Experience Management)?

As financial institutions, we know more about our customer’s activities than most any industry – yet we are one of the most commoditized.  We help our customers manage their money – yet we tend to take the emotion and empathy out of our messages. 

This is why branding is my passion!  It’s about people … it’s about turning “potential-customers” into “customers” and converting “customers” into “evangelists!”

When there is little tangible difference between “Bank A” and “Credit Union B,” can you afford NOT to rebrand in this economy? 

Take care,

Eric

Is it Spring Yet??

Greetings...

By the calendar, it is March and spring should be right around the corner. However, if you ask those on the east coast (the recipients of 8-12 inches of snow yesterday) they would swear it is mid-winter! Baseball is beginning and the temperatures just are not cooperating!

The point? Ahh, yes. The point is that "shifts" are happening everywhere. Shifts in the weather, shifts in the competition, and shifts in the economy. Some are slow to occur, some are swift and breathtaking, others occur and we only realize it after the fact! We need to have our customer contact points ready to act and react to the shifts and secure confidence from our customers!

Last week, we conducted 7 focus groups and 26 competitive shops for a client. The one word to describe the banking situation. WOW....and not in a good way! 50% of the 26 competitors did not even respond to our phone request for information, another 20% simply referred us to their website. I thought the in person shops would be better....not the case. In 70% of the shops, we were simply handed a brochure with no questions other than "what type of account are you interested in", 90% of the checking account discussions started and ended with Free checking!

With spring around the corner (hopefully) and the economy struggling, customers needing help, and money in motion everywhere...I think it is time for a Spring Inspection! Take a day and:

• visit ALL of your branches
• call your call center
• scour your website
• review all materials that are mailed from the institution

Do each of these with your "customer eyes" on...does your call center convey competence? Is your website truly easy to navigate, are your branches user friendly and promoting confidence in the bank/cu?

I think you may be surprised what you find! However, if YOU find it...and correct it...then it won't impact the customer negatively. Do a Spring Inspection THIS WEEK.

You will be surprised what you find...and you may also be pleasantly surprised! The key is that everyone KNOWS that they will be inspected to check on your expectations. That is an old Marty Cohen (from Cohen/Brown) saying that still resonates and has power.

Inspect...share expectations...and make sure you are ready for the current and future shifts by having your customer contact points ready to shine!

Cheers!

Bruce Clapp