Approaching business customers

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Jan 17, 2006 12:32 pm

One of the bank branches that I cover has a new branch manager who is very enthusiastic in partnering with me to increase the investment revenue for his branch.    That being said, he just gave me a list of some of our branches business customers.    Before I begin warm calling I wanted to solicit some opinions how I should position this first warm call.     I'm a firm believer in less is more on these first calls and to keep it brief.


Thanks in advance for any feedback.


Scrim

Jan 17, 2006 5:47 pm

Ok I have to say this, because it is how I feel . . right or wrong.  I think you bank guys are like unfair competition.  And I don't like helping you out.


I think you run transactional business and that the minute that client is out the door, you are on to the next one.


Am I wrong?


Jan 17, 2006 7:57 pm

I would ask the new branch manager to accompany you to go see those business owners whom he knows and let him/her introduce you. Of course, you'll need to come up with a very short intro of what you offer and how it pertains to their business.


For those business owners the branch manager doesn't know, find out if the business has a commercial loan with your bank. If so, then locate the loan officer who is in charge of that relationship. Find out, from the loan officer, the issues concerning that particular type of business or (even better) have the loan officer accompany you on an introductory visit.


In some instances, the business won't have a loan with the bank and the manager doesn't know them. What to do? Chances are, the business owner is friends with someone at the bank. Maybe the owner comes in to make their daily deposit and shoots the breeze with a particular teller or customer service rep. By all means, take that employee with you to make the first call.


Making calls with bankers the business owner knows will increase your chances of building a relationship.


Good luck!

Jan 17, 2006 10:30 pm
maybeeeeeeee:

Ok I have to say this, because it is how I feel . . right or wrong.  I think you bank guys are like unfair competition.  And I don't like helping you out.


I think you run transactional business and that the minute that client is out the door, you are on to the next one.


Am I wrong?




I wouldn't worry about them using your advice. If they could handle themselves in the asset raising business, they wouldn't try to get the scraps at the bank.

Jan 17, 2006 11:19 pm

Maybeee,


I like to think we are all in this together.    I couldn't imagine not wanting to help someone just because they decided it was best for them to build their practice in a wirehouse or at an independent firm.


If you check any of my past posts concerning my fee based practice you will realize I am building relationships as opposed to transactions.


Good luck to you.


Scrim

Jan 18, 2006 1:18 am

Scrim,


I wouldn't lose any sleep over Mr. Maybeeeeee's coments.  If you've read any of his past posts you'll see that he's more interested in cutting people down rather than helping them out.  It is annoying when you try to start a serious conversation, and some jerk hijacks it with his inability to get past the preconceived notions in his little mind.


I haven't presented to a business owner yet, so take my advice with that grain of salt in mind, but I have owned a small business for the previous 5 years.  I think the most important thing to a business owner is the bottom line, his own and his companies.  That should be the focus of your presentations.  You should also take advantage of synergies you can offer with your other banking services.

Jan 18, 2006 10:02 am

Scrim, interesting response.  And I will think about what you say. I have received tons of good advice here.  From my experience, I have not seen bank reps building mutually beneficial relationships.  That is the foundation of what I try to do.


good luck to you to.


Go sell your A shares Kool aid whether or not they are good for the customer.  Then figure out in two years how to sell completely different A shares to the same customer.

Jan 18, 2006 10:26 am

80% of my business is fee based as it is the arrangement I think is most beneficial for the client, my firm, and myself in respective order.  


The other 20% is transactional for a variety of reasons and of that 20% a very small percentage is in annuity products only because I couldn't talk them out of it.


scrim

Jan 18, 2006 10:57 am
scrim67:

80% of my business is fee based as it is the arrangement I think is most beneficial for the client, my firm, and myself in respective order.  


The other 20% is transactional for a variety of reasons and of that 20% a very small percentage is in annuity products only because I couldn't talk them out of it.


So you participated in something you felt was not right for them? Sounds unethical to me.


scrim

Jan 18, 2006 11:55 am

Technically I'm not sure if it's unethical.


Especially if I mark the trade "unsolicited" as I did.


There are rare occasions when I have to be an order taker.


scrim

Jan 18, 2006 2:43 pm

I hate to see guys squirm when someone who obviously has little to no details makes a remark like that. Why get so defensive and why succum to a blanket comment?

Jan 18, 2006 8:22 pm

scrim67:

Technically I'm not sure if it's unethical.


Especially if I mark the trade "unsolicited" as I did.


There are rare occasions when I have to be an order taker.


scrim


---------------------------------


(In case others don't know) Remember, just because an order is unsolicited, doesn't absolve you of any responsibility for it. You should make a reasonable attempt to make sure that the investment product is appropriate for that client. If it isn't, you should refuse the order.


Simply telling the arb board, that your client requested a particular investment product is not a defense. 

Jan 18, 2006 9:27 pm

doberman,


Point well taken.


I should have been more specific when I took an "unsolicted" order for a fixed annuity.


It would be hard to get into hot water I would imagine for that as long as I explanied the surrender fees and such.


scrim

Jan 18, 2006 9:30 pm
scrim67:

doberman,


Point well taken.


I should have been more specific when I took an "unsolicted" order for a fixed annuity.


It would be hard to get into hot water I would imagine for that as long as I explanied the surrender fees and such.


scrim



Buddy, there's nothing wrong with what you did. I was just busting your chops a little bit. Was it a big ticket? How much was the commish?

Jan 18, 2006 10:08 pm

Small ticket....like 600 GDC