5 minutes
This is bonus coverage from “Setting the Sales Dial” in the May 2016 issue of CUES’ Credit Union Management magazine.
At $30 million/5,500-member First United Credit Union, Grand Rapids, Mich., employees embrace an empathetic and forward-thinking sales approach.
“It helps us to leverage the credit union alongside our city’s mega-sized financial institutions,” says CEO Mark Richter. In his market, there are more than 130 banking outlets, including Bank of America, collectively serving a metro population of just over one million.
Richter believes small institutions can be just as competitive as their larger counterparts. “It requires offering the right product mix, multiple service channels and having your employees present banking solutions to members in the right way.”
Richter says smaller CUs can leverage their size to provide a more personal way of doing business. He believes a well-designed sales culture can help an organization define how it wants to serve members and be a differentiator. “Gone are the days of a single sponsor; members don’t have the same loyalty to any institution. But with a strong sales culture, a credit union can stay abreast of changing member needs and assist with products that are top of mind.”
Have a plan. Richter previously established a dynamic sales culture for a much larger (now 16-branch) CU in western Michigan. “Having a background in broadcast sales, my role then was to create a dynamic sales approach to the credit union’s marketing and branch strategy. This meant implementing sales training at every level, as well as establishing goals for every branch and member-facing employee. It was also critical teaching branch managers to become sales coaches.”
He recommends that a sales plan be clear, concise and in writing: “Have it reflect the needs of your members and specify the credit union’s expectations and goals. Include staff training, incentives and timing for implementation. There has to be a statement of accountability within the plan as well.”
Larger CUs require a structured plan with goals for all levels, explains Richter, including a set of expectations for regional and branch managers. Objectives should filter down to individual loan officers, member service reps, and even tellers. For smaller CUs, the plan should be written more broadly, since employees wear many hats.
“No matter the size of the CU, training and accountability are critical; everyone should understand the larger organizational goals and have individual goals,” stresses Richter.
Tools and training pave the way to a successful sales culture. But be prepared; there may be staff who are resistant to change or won’t want to sell. Or, some may want to sell and don’t know how. “It should happen in the beginning and throughout the employee’s career,” reiterates Richter. “Training will help staff to be professional and give confidence that selling is serving. It also enables selling to be done in a tactful and caring manner.” He adds that some (staff) may not achieve, and this could result in turnover.
Teach staff to sell. Is it as simple as asking the right questions? Almost. “Rarely will a member walk in and say they need a car loan, mortgage or CD,” says Richter. “It’s up to staff to find out what’s on your members’ minds and to discuss financial solutions. Asking good questions helps.”
It’s also necessary to have the right tools in place, stresses Richter. “First, ensure staff have a supreme handle on product knowledge. Have them role play with each other by asking needs-identifying questions and practicing overcoming objections. Create an employee intranet focusing on organizational goals. Other tools can include online measurement tracking, so staff can see where they are in the sales process. Also provide ongoing training for employees and a formal coaching development plan for managers.”
If the right tools are in place, some turnover can be healthy, submits Richter.
Here’s the process Richter teaches his staff to use, step by step:
- Know what to say and how to say it.
- Ask significant questions. They can be simple, such as, “How do you like to bank?” or specific like “I see you’re making payments to xyz company for your mortgage. What rate are you currently paying?”
- Watch for cues from the member.
- Determine member needs.
- Match the product to the need.
- Overcome objections.
- Ask for the business (close the sale.)
“And don’t discount the importance of having competitive products for staff to sell,” adds Richter. “If not, you may be asking the impossible. Poor product selection will not benefit your members nor be comfortable for staff to sell.”
How should a non-profit sell? “Because we are non-profit, and our mission is to serve, you don’t want to sell too hard,” says Richter. “On the other hand, you don’t want to fall into the trap of making excuses for staff if they’re not selling. It’s a balance, but one that can be achieved with a comprehensive plan. It also requires a commitment to the process and the ability to see the plan all the way through.
“If you don’t know about sales or aren’t sure, learn,” concludes Richter. “Visit credit unions that are doing sales the right way. Network with peers. Visit websites and attend training or conferences. Review your products to confirm they are competitive and relevant for members. Ensure that you, your staff and the board have a long-term commitment to the process. And before you can implement any new culture, staff has to be willing to learn. Get their buy-in that selling is serving.”
As a CU decides to build a new culture, Richter recommends reading The Energy Bus by Jon Gordon.
Stephanie Schwenn Sebring established and managed the marketing departments for three CUs and served in mentorship roles before launching her business. As owner of Fab Prose & Professional Writing, she assists CUs, industry suppliers, and any company wanting great content and a clear brand voice. Follow her on Twitter @fabprose.
