KQ Article

Whether the customer is walking in the door for the first time, shopping for products and services, or complaining about a problem, bankers regularly find themselves in situations where they need to persuade the customer to think or act in a particular way. These engagements are typically handled by front-line staff who rely heavily on their day-to-day experience and basic training.

 

What front-line staff really need to be effective is skill in nuanced persuasion and influence. Yet most financial institutions leave their employees ill-prepared, relying on generalized sales training to equip them for these complex customer interactions. While many employees are effective in the moment — they gain the customer’s agreement or close the sale — this short-term success is offset by negative long-term outcomes, such as the erosion of trust or feelings of hostility toward the banker.

 

Today’s sales approaches tend to generate two primary negative effects:

 

1. Already timid front-line bankers feel even more uncertainty and discomfort.

2. Customers feel disregarded and skeptical of the bank or banker’s competence.

 

 

 Thrust out on the “floor” after minimal training, largely unprepared to discuss products in depth, and self-conscious about their financial management practices, front-line bankers are expected to engage customers confidently, conversing easily about their needs as well as the products and services the bank has to offer. Terrified of being labeled an impostor, these bankers tend to talk a lot, listen too little and suggest the products they know best — regardless of what the customer needs.

 

This general discomfort and lack of financial acumen prevent front-line bankers from using a rational approach. Instead, they rely on stronger, more forceful means of persuasion. In the end, one of two things happens, and both are negative. If insecure bankers succeed, they tend to devalue the customers and themselves, resulting in even stronger discomfort and decreased self-esteem. If these same bankers fail, it validates their feelings of inadequacy.

 

 The second problem with today’s approach to persuasion is that financial institutions tend to leave customers feeling disregarded. This increases the customer’s already looming skepticism of the bank or banker’s competence. When ill-prepared front-line bankers are battling feelings of inadequacy (coupled with limited experience or training), they have very little ability to listen attentively or consider the true needs of the customer. If customers get enough information to select the right product or service, they do so in spite of the bankers, not because of them.

 

On paper, the interaction looks like a success. What is not reflected, however, are customers’ lingering concerns that the bank and banker operate with little regard for the customer.

 

 

The way a banker influences customers should vary by situation — and the situation should be determined by the customer. Following are three unique influencing situations. In each one, customer comments or responses help bankers identify the situation correctly and respond appropriately.

 

In this situation, a customer walks in or phones the branch with a clear need and some idea of how to address it. The banker’s objective is to move the customer from a narrow, singular focus to a more conceptual view that allows the banker to meet the immediate need as well as discover other needs. This leads to a deeper, longer-term, more profitable relationship.

 

To influence effectively in a Stated Needs situation, the banker does three things:

 

 

The interaction might look something like this (C = Customer, B = Banker):

 

 

 

 

 

 

 

 

 In this situation, the customer’s need is sparked by a problem with an existing account or an action taken by the customer or bank. The banker’s ultimate objective is to make the customer feel whole again. The banker should immediately focus on resolving the problem by seeking to understand it and offering options. Only then can the banker co-create the final solution with the customer.

 

To influence effectively in a Problem Situation, the banker does three things:

 

 

The interaction might look something like this:

 

 

 

 

 

 

 

 

 This situation is similar to the Stated Need because the customer walks in or phones the branch with a clear need and some idea of how to address it. Here, however, the banker immediately realizes the customer’s need would be better met with a different solution. In this case, the banker’s objective is to move the customer away from what they say they want — and help them see the benefits of a different choice.

 

To influence effectively in a Customer Misdiagnosis situation, the banker does three things:

 

 

This interaction might look something like this:

 

 

 

 

 

 

 

While these three approaches do not discount the need for solid product knowledge and general financial acumen, they do shift the emphasis to understanding the customer’s need and the situation at hand. Each situation begins with the customer talking and the banker listening. The banker listens attentively to determine the situation, which encourages the customer to feel optimistic about the pending exchange. This positive feedback boosts the banker’s self-confidence and helps alleviate any pressure the banker feels to dominate the discussion.