Business Bankers Need to Focus on Building Relationships to Grow

March 26, 2010 - PRLog -- Malvern, PA— According to Barlow Research, only 15% of small business customers (sales between $100K and $10MM) have discussed with their bankers the impact that the recession has had on their business. Both sides may be avoiding uncomfortable conversations, but that’s clearly not in the interest of business bankers, according to Buck Bierly, the president of MZ Bierly Consulting, Inc., a sales consulting firm based in Malvern, PA (www.mzbierlyconsulting.com).

“Bankers who aren’t proactive now run the risk of losing their best customers,” said Bierly. “As many regional and community banks have reduced their dependence on real estate-related loans, competition has heightened for the business of well-run operating companies and professional practices. Many of our bank clients view this as a time to grow market share and are aggressively targeting banks that are not actively calling on their business customers,” Bierly added.

While noting that loan demand has been slack throughout the country, he highlighted the importance of staying in close contact with borrowers. “You build relationships between transactions,” he emphasized.

In focused relationship development, the most successful bankers do the following things consistently:

1.  They focus on the right companies. Bankers need to understand what their banks are looking for. But there's more to this than just memorizing the target profile. Bankers have to assess whether they’re a good match for the prospects as well, considering whether they have the requisite skills and experience to deliver a compelling value proposition.

2.  They build relationships at the right level. In most cases successful prospectors start at the highest point in the organization that they can reach. In small to midsize businesses this is usually the owner while in larger companies it is a chief financial officer or treasurer. Starting at the top of the organizational totem pole is not always easy (these people are hard to reach for a reason) but it usually pays dividends in the long run.

3.  They have clearly defined objectives for both the first and the second meetings. They familiarize themselves with the prospect’s industry using resources like RMA, First Research or LexisNexis. They also spend time reviewing the prospect’s website. By comparing industry trends with what appears to be going on in the company, they're able to identify potential financial needs.  

4.  They use their team members effectively in developing and implementing their sales strategy. Successful prospectors are good relationship “quarterbacks.”

5.  They find a coach, somebody inside or outside the prospect organization who can give them a window on the inner workings of the company. A coach can help bankers see things in a different light (e.g. who the real influencers are within the company, what the values are of the key players, and who the real competition is in a given situation.)

6.  They understand that prospecting takes time. According to Bierly, it takes between five and eight face-to-face calls to move a significant share of a prospect’s business. That requires both patience and persistence.

About MZ Bierly Consulting
Founded in 1988 by Buck Bierly and headquartered in suburban Philadelphia, MZ BIERLY CONSULTING, INC. provides proven sales force management processes for regional and community banks. The firm is dedicated to helping banks translate their business objectives into results by improving the day-to-day effectiveness of sales managers and sales teams through consulting, coaching, onsite training, webinars and publications. Please visit www.mzbierlyconsulting.com or call 610-296-4772 for more information.

UPCOMING WEBINARS
-The 5 Mistakes Bankers Make in Sales Calls—April 5, 2010
- Value Propositions:  It’s Not All About Price—April 26, 2010
- Identifying and Developing Needs: Think Like a Business Owner—May 10, 2010
- Delving into Financial Operations: Follow the Money—May 24, 2010
- Team Selling—June 18, 2010
- Pricing/ Negotiating Strategies—June 28, 2010

To register for any of the upcoming webinars go to https://mzbierlyconsulting.webex.com.
Media Contact: Ned Miller, 610-296-4772, nmiller@mzbierlyconsulting.com

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Founded in 1988 by Buck Bierly and headquartered in suburban Philadelphia, MZ BIERLY CONSULTING, INC. provides proven sales force management processes for regional and community banks. The firm is dedicated to helping banks translate their business objectives into results by improving the day-to-day effectiveness of sales managers and sales teams through consulting, coaching, onsite training, webinars and publications. Please visit www.mzbierlyconsulting.com or call 610-296-4772 for more information.