One of the biggest challenges bankers face today is getting prospective business clients to change banks. Even if they don't really like their current bank, getting prospective business clients to actually change to another bank is almost impossible. But why is it so tough?
That's the problem I was looking to solve when I started my research months ago...why is it so tough to get a prospective business client to change banks?
When I asked dozens of bankers across the United States this question, I got an earful. Almost every banker I interviewed had a "war story" to tell about a prospective business client that just wouldn't commit to changing banks. Even when the banker had shown the prospective business client that they could save them money or improve their cash flow, they still wouldn't agree to change banks.
As I analyzed all of the banker interviews, I realized the biggest obstacle to changing banks was...there are always unintended consequences for the business client!
In most cases, it's the fear of these unintended consequences that causes the prospective business client to avoid changing banks. In other words, for every positive action by the banker to solve a client's problems, there is an equal and opposite reaction the client must deal with...Newton's Third Law of Motion, for every action, there is an equal and opposite reaction.
So how should bankers deal with the prospective business client's fears of unintended consequences? There are two basic steps bankers must take:
1. Develop a Plan...Identify the most typical unintended consequences for key bank products and services that occur when changing banking relationships and outline the specific steps the banker will take to eliminate or minimize those consequences. By developing these specific steps for resolving unintended consequences, the banker will be able to respond to any client objections or questions.
2. Write Success Stories...Develop stories that describe examples of how the banker successfully resolved similar unintended consequences with other prospective business clients. These stories will demonstrate to the client that the banker is familiar with the unintended consequences and has experience successfully dealing with them.
Newton's Third Law of Motion helps explains why prospective business clients are so resistant to changing banks. If bankers wants to successfully overcome this client resistance they must have a better approach for reducing their fears of unintended consequences.
For more information on this and other bank sales challenges, email me at firstname.lastname@example.org or call 704-674-8482.