Selling the Bank

1. Selling the Bank Presented by S. Cox

2. Section 1: Marketing and Promotions • Objectives: • Explain how customer needs and wants are used to identify a target market. • Describe the components of a marketing strategy and how it is developed.

3. Meeting Customer Needs • All consumers have needs and wants • Need – something a person must have to survive • Such as food, clothing, and shelter • Want – something a person would like to have but does not need to survive • Such as cell phones, jewelry, and brand new car • By identifying their target market banks can give their customers what they need

4. Meeting Customer Needs: Identifying a Target Market • Banks like other businesses… • Set up in locations where they can get customers • Design products and services to help those in the community in which they serve • No matter the product, not everyone will want to buy it • To reach the right consumers, banks must first identify them

5. Meeting Customer Needs: Identifying a Target Market • Some questions to consider… • What characteristics do these consumers haved in common? • Are they saving money to buy a house? • Did they recently buy a car? • Knowing the characteristics that potential customers have in common help identify a market segment…a group of consumers that share common wants and needs

6. Meeting Customer Needs: Identifying a Target Market • Four types of market segmentation • Demographic – age, occupation, gender, family size, income, education, and ethnicity • Geographic – region, country, state, block, neighborhood, city • Behavioralistic – benefits sought, usage rate, brand loyalty, purchase frequency • Psychographic – habits, interest, opinions, hobbies, activities, lifestyle

7. Meeting Customer Needs: Identifying a Target Market • By breaking consumers into segments, banks can focus their marketing efforts on those who are most likely to become customers…this group is called the target market • The market segment that will be the focus of the marketing strategy

8. Meeting Customer Needs: Matching Bank Products & Services to Needs & Wants • Once the target market is identified, the bank can match the needs and wants of these consumers to its products and services • Products and services are designed or modified by analyzing the needs and wants of a certain market segment • Example on next slide….

9. Meeting Customer Needs: Matching Bank Products & Services to Needs & Wants

10. Developing a Market Strategy • Advertising – calling attention to a product or service, commonly through the use of paid announcements • Marketing – the process of introducing a product or service to the consumers who can purchase it

11. Developing a Market Strategy: Aspects of Marketing

12. Developing a Market Strategy • Plan is developed around the four P’s of marketing • Product – What products or services meet the needs of consumers in the target segment? (examples: certificate of deposit, savings account, mortgage, or mobile banking app) • Place – How will the product be available to customers? (examples: online, at a bank branch, ATM, Smartphone; regionally, nationally, or internationally) • Price – How much will the product cost the consumer? (examples: fees and interest rates are paid as well as charged) • Promotion – How much will the product be announced? (examples: TV ads, billboards, Internet, social media, or a combo)

13. Developing a Market Strategy: Creating Promotions • Promotion – an activity that increases consumer awareness of a product • In the past – heavily relied on advertising which included TV and radio or in newspapers and magazines • Today – promotion is more dynamic • Distributing pens with the bank’s logo • Sponsoring a city-wide event, a concert • Creating a web site • Sending email or social media updates to customers • Distributing calendars or some other daily-use product • Holding seminars to help customers that are considering financial milestones

14. Developing a Market Strategy: Making a Sale • Some sort of contact is needed to make a sale • Selling occurs in many ways but for banks personal selling is the most common…each time a bank employee comes in contact with a customer or potential customer • Cross selling – personal selling strategy that encourages existing customers to buy new products based on their previous purchases, sometimes called relationship-based selling • Result of existing relationship • Requires interaction between bank employees

15. Developing a Market Strategy: Making a Sale • Event based selling – personal selling strategy in which a bank employee contacts a customer because of event that has recently happened with the customer • Example: when a customer visits a web site and requests information about home mortgages which may trigger a personal email from the loan officer inquiring if any additional information is needed by the customer

16. Section 2: Building Relationships • Objectives: • Describe the elements that create a positive image for a bank. • Explain the importance of customer service in keeping customers.

17. The Bank’s Image • What qualities would you want a stranger to have when you consider giving him or her your life savings to hold for you? • Wouldn’t you require the same qualities from your bank?

18. The Bank’s Image • Public image – made up of the ideas and opinions that people have about the business • It’s easier to hire and retain employees, acquire new customers, and keep current customers with a positive public image • A bank must be seen as honest, stable, and an important part of the community • Even though all banks seem to be honest and stable, they also need to appear unique in some way • Maybe emphasize their customer service or community involvement

19. The Bank’s Image • Economic strength of a community often depends on its ability to get credit • Banks can contribute to the local economy by making loans to individuals and businesses • These loans help create jobs and bring revenue to its citizens

20. The Bank’s Image • Banks also engage in the communities that they serve • Sponsor community events…marathons • Financial education to consumers • Executives serve on civic boards and local chamber of commerce • Customer service

21. The Bank’s Image • If the bank’s reputation is damaged they may need to repair it • Replace some of the managers • Change how they qualified potential borrowers • Institute other policy changes

22. What is Customer Service? • Customer Service – all interactions between a customer and the bank • Customer – an individual, organization, or business that purchases a product or service

23. What is Customer Service? • Starts with the first interaction between the customer and bank • Click on a web site • Comment overheard about the bank while at work • Use of an ATM at the mall • The difference between poor customer service and great customer service is the difference between losing and keeping a customer

24. What is Customer Service? • Every bank employee is a customer service representative…each must avoid unethical and inappropriate behavior • To provide positive customer service, employees should: • Address the customer by name • Know the products and services offered by the bank • Apply their expertise to the customers’ needs to find the right product that is right for him or her • Exceed in the customer’s expectation for service

25. What is Customer Service? • Building rapport with a customer will increase his or her satisfaction with the bank • Rapport – a bond of mutual trust • Having good rapport is central to a successful and ongoing business relationship • Customers expect good service and if it’s exceptionally good or poor chances are he or she will mention it to others • Word of mouth advertising – type of promotion in which customers tell others about their experience with a specific business

26. What is Customer Service? • Methods of achieving rapport: • Language • Use speech and body language similar to the customer • Be aware of your nonverbal communication as well as that from the customer • Cultural • Find shared interests and experiences • Be aware of cultural differences • Other • Create a positive environment • Be open to doing something for a customer for no immediate return • Identify barriers and work to remove them

27. What is Customer Service? • Customer service representatives are an important part of customer service but quality products and services enhance the banks image and generate customer loyalty: • Locations • Handicapped accessibility • International service • Secure web sites