KNOW YOUR CUSTOMER —
AND YOUR BRANCH EMPLOYEES
Feature Article
Andrew Singer

BANK-BASED REPS, unlike conventional brokers, have two constituencies: Their retail customers (and prospects) and their fellow workers in the bank branch.

Often a branch-based broker's success depends upon how well he or she is perceived in the branch, observes Doug Robb, regional marketing director, Lincoln Financial Distributors (Basking Ridge, NJ). Are bankers happy to see the rep in the morning? Is the rep viewed as trustworthy?

The branch manager is critical

'Key' No. 1 for rep success is the branch manager, says Robb, speaking at BISA's Advisor Workshop, held during the summer in White Plains, New York. The session was titled "Techniques to Build Truly Effective Branch Teams."

"If you don't have the branch manager on your side, you'll never get any traction," he says.

The rep should seek to reinforce the idea that the branch manager is in charge. If a rep has an idea, it's not so bad to let the manager think it is his or her idea, he suggests. And be sure to clear all initiatives with the branch manager (e.g., "I want to do a call night.")

Gaining trust

A second key is to "earn respect and trust in the branch," says Robb. "If you do a bad job, we know how fast that word travels."

Speak to each branch employee at every opportunity. Introduce yourself to that new bank teller. Buy that new person a sandwich. Some tellers know everyone in the neighborhood. You never know who will be a good source of referrals. "Look them in the eye" when you speak with them, and "never talk down to anyone," says Robb.

"Birthdays are key," Robb adds. Know everyone's birthday; and when a birthday rolls around, "go to the local bakery" and buy a cake.

With older branch employees, make sure that you know their kids' names and what their kids are doing. "It makes a big difference."

Robb refers to NYSE Rule #405, which stipulates that a securities salesperson must know his or her customer. Try to apply this principle to the bank team as well. What motivates each person? Flowers, food, time off, lunch? You might put a board in the lunch room where everyone sees top branch referrers. "People love to see their names in lights."

Reward activity, not results. Praise people for asking their clients for referrals, for example. The actual number of referrals generated is secondary at this stage. The important thing is to get people into the habit of asking.

"Management loves to hear success stories," says Robb. Tell them about the Merrill Lynch customer who moved his assets over to the bank. Don't only go to the branch manager with these stories—report the good news to the manager's manager as well, if possible. Let them know that 'so and so' did a great job.

Training, training, training

Branches have to understand the benefits to customers with regard to investment products and services. Don't talk about features. Talk about benefits. Show bank employees you have a way for their clients to take care of their families and generate income for themselves.

There are three ways to raise this level of understanding within the branch: 'Training, training, training.'

—Doug Robb, Lincoln Financial

There are three ways to raise this level of understanding within the branch, says Robb: Training, training, training.

Make the training easy and convenient. Training sessions held right before the branch opens in the morning may not be the most opportune time. Employees are gearing up for the initial customer rush. A better time might be during the day when there is a lull in branch traffic—at 10 a.m., say.

And keep it brief. "Don't do more than 15 minutes—you'll lose them," Robb says. Go over a couple of key benefits of your products and services each time.

Target employees personally. You might ask, "Do you have a college fund set up?" Also, avoid technical jargon.

'Build your value proposition'

A fourth key is to "build your value proposition," says Robb. Make it clear that you are there for the customer, the institution, and the branch employees. When asked what you do, you might answer along these lines: "I specialize in building private pension plans for clients."

A fifth key is to "Make your expectations crystal clear," says Robb. Set goals that are attainable and have the 'buy in' of the branch. If possible, let the branches set their own goals, even if it's as modest as generating one referral per employee each quarter.

Again, "Be activity driven," not results driven, says Robb. Focus on getting bankers to talk to customers about investments rather than generating a certain volume of revenues through their referrals. Regularly discuss employees' goals. "What can I do to help you reach your goal?"

'If you don't have the branch manager on your side, you'll never get any traction.

"Does everyone understand what a qualified referral looks like?" asks Robb. "Does everyone understand the compliance-approved way of making a referral…including language and logistics?"

Branch employees should be taught not to obfuscate. When a client asks, for instance, if a retail investment product is FDIC insured, don't evade the question. The rep might say something like, "No, it's not. But a lot of our clients like alternatives to traditional bank products for these reasons…."

Constantly reinforce who 'owns' the customer (i.e., the branch). If possible, hold joint meetings with bankers and customers. The banker can always cut out after five minutes ("I have to go off and do some things") after making the introduction and adding a few salient details, such as "Mrs. Johnson is only interested in guaranteed income solutions…."

"Provide immediate feedback." When a banker makes a referral, follow up with that banker immediately. If a prospect doesn't pan out, there's a tendency not to contact the banker. That's a mistake. Two weeks later, the banker might ask, 'What ever happened with Mrs. Johnson?'

"She's bringing in more statements," the rep answers.

"Oh, I should have remembered to ask for that," says the banker. In the future, the banker resolves to ask referred clients to bring in all their statements.

A rep might also provide platform bankers with good questions to ask clients, such as: "What is your income replacement strategy when you retire?" Many bank customers can't answer that, notes Robb.

Another good question: "Is the money in your CD designated for retirement?" This is better than asking: "What are you doing with the money in your CD?" The latter might prompt an answer along the lines of: "None of your business!"

Another useful gambit: "Are you buying the CD to make a major purchase?" Many bank customers buy CDs for exactly that purpose, Robb notes.

Three words that always resonate with bank clients are: "Are you aware…"

Again, continuously reinforce the importance of the manager to your success, Robb advises. Keep stressing: "We are a team." Be present wherever possible at staff functions. If you are not there, people begin to think, "He's not one of us" or "He thinks he's above us."

If the bank conducts morning 'huddles,' says Robb, "show up with coffee and doughnuts—it goes a long way."