a REFERRAL - Indiana Bankers Association
How to
Build
a REFERRAL Program Culture
That
Works
Tom Hershberger President [email protected] Twitter @crossfin
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Culture A patterned way in which people do things together.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Referral Cultures Don’t
begin unless you plan to continue 9 Distractions are costly Establish a clear purpose for referrals 9 Reinforce it frequently Support your profit, growth and relationship goals or don’t do it at all – Inconsistency is apparent to employees
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Money And Needs Save
Borrow
Manage 9 Move money 9 Make payments
Protect
9 Short-term 9 Mid-term 9 Long-term
9 Major purchase 9 Ongoing financing
Savings
Loans
Checking
Insurance
CDs
LOC
FDIC
IRAs
ODP
Online banking
Annuities
Leases
Bill Pay
9 Income 9 Assets 9 Retirement
Trust Services
Debit card www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Relationship Development Business Initiative Retention
Growth
Attraction
1
2
3
Current Customers
Prospects
Target Audience www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Relationship development begins after the first purchase is complete. Help employees focus on what’s next, not just what needs to be done now.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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1 2
Quality Service
Referrals Relationship Growth www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
In order to succeed, continually sell the idea that referrals are part of good customer service. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Relationship Building Service
Support
Products Referrals
Expertise
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Customers Have Choices
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Reducing Household Losses Products
that reduce lost customers
9 Checking accounts with direct deposit 9 Annuities 9 IRAs 9 Investment funds 9 College savings plans 9 Life insurance 9 Mortgage loans
TowerGroup www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Average Sale Per Referral $11,000
$12,444
$11,250
$10,000
$8,824 $7,246
Year One
Year Two Year Three Year Four
Year Five
Year Six
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Sales and Referrals Product Sales
8,000 7,000 6,000
Referrals
Bank Example
$50,000,000 $40,000,000
5,000
$30,000,000
4,000 3,000
$20,000,000
2,000
$10,000,000
1,000 0
$60,000,000
Year One
Year Two
Year Three
Year Four
Year Five
Year Six
$0
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Great referral programs are first a mindset and second a set of procedures. Procedures alone do not generate results. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Complexity does not improve performance. It only confuses the staff and makes measurement more difficult. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Referral Management Leadership
Decisions
Support
Management and Coaching
Implementation
Forms and Data Entry
Staff Responsibilities
Daily Activities
Operational Procedures
Program Compliance
Performance Reports
Performance Tracking
Goal Setting and Achievement
Success Action Plans
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Who Should Generate Referrals? Referrals
are a way to serve customers Everyone can help serve customers Everyone benefits when customers use more services Therefore,
everyone refers www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
What You Will Hear I
don’t have any customer contact I’m in a support position It’s not my job I don’t know how to make referrals I’m not sure what to refer
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Sell the idea that referrals are part of great customer service.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Job Descriptions Every job description can include relationship expectations.
Proactively promote the bank’s products and services. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Referrals take the extra step to providing the best service possible.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Terminology - - - - - - - -
Lead Introduction Qualified lead Referral Qualified referral Closed referral Account referral Relationship referral
Define a referral before you add complexity with additional components or alternatives.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Bank A It is a referral when…
9 The customer has not previously requested
information about the product 9 The referring employee recognized a need and established the thought with the customer 9 The referring employee plays an active part in the customer setting up the product 9 The sole reason the customer is coming to the bank is because of the referring employee
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Bank B Leads
Referrals
Leads do not qualify 1. Employee discovers the need for fees or contests
It is a lead when...
9 you direct a customer to a product based on the customer’s request for information 9 the customer need is identified by an employee through routine questions asked during a telephone call or visit to the office
2. Employee stimulates customer interest in an idea of a product/service 3. Employee makes the recommendation to meet with a specialist
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Bank C Referral 1. Interactive discussion with a customer, or prospect, that is initiated by the employee.
2. An awareness of a product or service was created and/or a need was identified. 3. The appropriate sales specialist was recommended. 4. The referring employee obtains customer/prospect agreement to meet with, and/or to accept a phone call from, a sales specialist.
5. Generally, the sales specialist is outside of your normal departmental area. 6. An incentive is paid for the referral and is not contingent on a sale or based on the type or dollar amount of any business written or generated.
Appointment Referral 1. Meets all of the criteria of a basic referral. 2. An appointment was facilitated with the help of the referring employee by either a direct personal introduction, if the customer is in the bank, and the timing is good for both you and the sales specialist, or by obtaining the customer’s agreement to meet with the specialist face to face and the appointment is kept. 3. Referral incentive is based upon the appointment generated and is not contingent upon a sale or on the type, or dollar amount of, any resulting business written or generated.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Bank D Referral
The potential service opportunity is initiated by the employee with the customer or prospect The goal is to focus on creating a qualified sales opportunity, appointment or introduction to a salesperson or product specialist The customer needs to provide permission for future contacts from the appropriate bank staff
Qualified Referral
In order to be a qualified referral, the employee must include background and contact information about the customer or prospect, identify the bank service they have suggested and get permission from the customer to have a sales representative contact them, if appropriate. If the employee sets up an appointment for the customer to talk with a sales representative or makes an immediate introduction, it is automatically a qualified referral.
Closed Referral
Any referral that has concluded with the sale of a new bank service
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
13
Forget about leads! Leads
are confusing to employees
Focus
on the one thing that counts
9 Leads are usually low quality referrals 9 Leads can help create a referral
REFERRALS www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Lead and Referral Program
If you can sell it, you can’t refer it. Lead Referral Open referral Closed lead Closed referral Program points
The Union State Bank Lead and Referral Program is designed to encourage relationship development contacts between USB employees and customers and prospects in our trade area. The program is structured to track relationship development activities and to provide rewards to employees that are proactively presenting financial solutions to area residents and businesses. The program components and guidelines are summarized in the following outline.
Referral Program Definitions and Guidelines If you can sell it you can’t refer it. Lead
The employee identifies a potential financial service opportunity The employee provides a sales representative or specialist with basic information about the client and/or financial service opportunity In order to become a qualified lead, the employee must include background information with their lead form that identifies the potential need and provides full contact information for future contacts
Referral
The potential financial service opportunity is initiated by the employee with the customer or prospect The employee must make a recommendation for a financial solution or meeting with a financial specialist The goal is to focus on creating a qualified sales opportunity, appointment or introduction to a salesperson or product specialist The customer needs to provide permission for future contacts from bank staff Qualified referrals must include background information to In order to become a qualified referral, the employee must include background and contact information about the customer or prospect, identify the financial service they have recommended and get permission from the customer to have a sales representative contact them, if appropriate. If the employee sets up an appointment for the customer to meet with a sales representative or makes an immediate introduction, it is automatically a qualified referral.
Open Referral
Any referral that has been initiated by the employee, but has not yet resulted in an appointment with the customer or a sale of a financial service
Closed Lead or Referral
Any lead or referral that has concluded with the sale of a financial service
Lead and Referral Program Points Program Activity
Reward Level
Reward Points
Basic Lead or Referral
1
1 Point
Qualified Lead
2
2 Points
Qualified Referral
3
5 Points
Closed Lead or Referral
4
5 Points
Weekly Goal Achievement
4
10 Points
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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The MENU - - -
Basic referral Appointment referral Dollars by product Dollars by position
03/31/2004
Basic Referral Loans
Sales Assoc.
Commercial/Ag(Inc. R.E.)* Residential Mortgage* Consumer H/E, Auto, Personal Credit Cards
Appointment Referral
Sales Support
Sales Assoc.
Sales Support
$5 $5 $2 $1
$10 $10 $ 5 $ 2
$25 $20 $10 $ 2
$50 $40 $20 $ 5
$5 $5
$10 $10
$25 $20
$50 $40
$5 $5 $2 $2
$10 $10 $ 5 $ 5
$20 $20 $10 $10
$40 $40 $20 $20
$5 $5 $5 $2 $2
$10 $10 $10 $ 5 $ 5
$20 $20 $15 $10 $10
$40 $40 $30 $20 $20
$n/a $n/a $2 $5 $5 $2 $2 $1
$n/a $n/a $ 5 $10 $10 $ 5 $ 5 $ 2
$n/a $ 1 $10 $20 $20 $10 $10 $ 2
$n/a $ 2 $20 $40 $40 $20 $20 $ 4
Life Insurance & Investments Long Term Care/Health/Med. Supps. Life Insurance (Unless directly sold by lenders) Annuities REIT Mutual Funds/MMDA’s Stocks & Bonds
Property & Casualty Insurance Ag Property Crop/Hail Business Auto Homeowners
Deposits & Services Telebanking Internet Banking Bill Payer/Cash Mgmt-Payroll/ACH Business Checking CD/IRA/HSA** Personal Checking/MMDA/Savings Gold Club Membership Debit Cards
*Sales Profitability Bonus Paid-Loan Sales
$ 25 $ 50 $100
$ 50,000 - $ 99,999 loan closed. $100,000 - $149,999 loan closed. $150,000 & above loan closed.
**Sales Profitability Bonus Paid-Deposit Sales for CD/IRAcd.
$ 10 $ 25 $ 50
$ 25,000 - $ 49,999 deposit. $ 50,000 - $ 99,999 deposit. $100,000 & above deposit.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Clarify Basic Procedures Responsibilities
-
Referral Incentive Menu
Employees
9 Client contacts 9 Forms and data entry 9 Action plans Managers 9 Set and manage goals 9 Coach performance 9 Reward progress www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Define – Then Design 1. Identify what you have to know 2. Collect only what is needed 3. Provide enough room to write things down
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Referral Information Date_____________ Referred To _______________________________ Referred By________________ ! Customer ! Prospect
! Lead ! Referral
! Referral w/Appointment
Appointment Date/Time_________________|__________
Examples
Sales Rep Initials_________________________
Name ___________________________________________________________________________________ Address, City, St, Zip _______________________________________________________________________ The best day to call for appointment is _______________________ Best Time _________________________ Telephone number to call___________________________________
Financial Service Interest (check all that apply) Property/Casualty Insurance
Loans
! Commercial/Commercial Real Estate ! Ag Production/Real Estate ! Residential Real Estate-Purchase ! Residential Real Estate-Refinance ! New Construction ! Home Improvement ! Home Equity/HELOC ! Recreational Vehicle ! Auto/Motorcycle ! Personal Loan ! Credit Cards
! Farm Property ! Crop/Hail ! Business ! Health ! Homeowners ! Auto/Motor Cycle ! Recreational Vehicle ! Boat/Snow Mobile ! Motorcycle
Deposits & Services
Investments & Life Insurance
! Business Checking ! Personal Checking ! CD ! Savings ! Money Market ! Debit Card ! Internet Banking and Bill Pay ! Business Cash Management ! Health Savings Account
! Long Term Care ! Life Insurance ! Annuities ! 401(k) ! Estate Planning ! Stocks, Bonds, Mutual Funds ! IRA ! Retirement/Investment Planning
Lead/Referral Information o Lead
Date
o Referral
o Approved
Customer/Prospect Name Address
City
State
Home Phone
Work Phone
Zip Best Time to Call
Lead/Referral Information
Background Information
Follow Up
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
REFERRAL FORM
Client Referral Opportunity Date_____________ Referred To ___________________ Referred By__________________________
Referred To:____________________________
Prospect's Name:____________________________________________________________
Referred By:____________________________
Prospect's Phone Numbers: Home____________________Work _____________________
Date: _________________________________
The best time to reach prospect is: ______________________________________________
RETAIL BANKING
______ Referral-Appt. ______ Referral-Basic
______ Prospect ______ Customer
Appointment Date/Time__________________ Sales Specialist Initials____________________
Name: ___________________________________________________________________________________ Address: _________________________________________________________________________________ Est. Age: ______(21-30) _______(31-40) _______(41-50) ______(51-60) _________(61-70)________(70+) The best day to call for appointment is: _______________________ Best Time: ______________________ Telephone number to call___________________________________
Loans:
Property & Casualty Insurance:
______Commercial/Commercial Real Estate ______Ag Production/Real Estate ______Residential Real Estate-Purchase ______Residential Real Estate-Refinance ______New Construction ______Home Improvement ______Home Equity/HELOC ______Recreational Vehicle ______Auto/Motor Cycle ______Personal Loan ______Credit Cards
______Farm Property ______Crop/Hail ______Business ______Health ______Homeowners ______Auto/Motor Cycle ______Recreational Vehicle ______Boat/Snow Mobile ______Motor Cycle ______Specialty Coverages
Deposits & Services:
Investments & Life Insurance:
______Business Checking ______Personal Checking ______CD/IRA/HSA’s ______Gold Club/Gold Club Trip ______Hi Perf. Svgs., Plat. Svgs., MMDA ______Debit Card ______Internet Banking/Bus.Csh.Mgmt. ______Bill Payer ______Bus.Csh.Mgt.-Payroll/ACH ______Other_________________ Background Information:
______Long Term Care ______Life Insurance ______Tax Deferred Annuities ______401(k)/SEP ______Estate Planning ______ Stocks, Bonds, Mutual Funds ______ Princpl.Cash Mgmt. Account ______ IRA/401-K Rollover ______ REIT
! ! ! ! ! ! ! ! ! !
- CHECKING - Savings - CHECK CARD - Line of Credit - Kids' Klub - Youth Savings - New CD - Renewal CD - Bank@Home - Bill Pay
MORTGAGE LOANS ! ! ! ! ! !
- REFINANCE - 1ST TIME HOME BUYER - HOME BUYER - HUD - CONSTRUCTION - RENTAL PROPERTY
CONSUMER LOANS ! ! ! ! !
- VEHICLE LOAN - HOME EQUITY LOAN - HELOC - PERSONAL LOAN - NE ENERGY LOAN
INVESTMENT CENTER ! ! ! ! ! ! ! ! ! ! !
- MUTUAL FUNDS - STOCKS - BONDS - ANNUITIES - LIFE INSURANCE - DISABILITY INSURANCE - FINANCIAL STRATEGIES PLAN - 401K ROLLOVER - COLLEGE SAVINGS PLAN - ESTATE PLANNING - LONG TERM CARE
BUSINESS BANKING ! ! ! !
- REAL ESTATE - BUSINESS LOAN - BUSINESS LOC - BUSINESS CHECKING
Additional Comments:
Tracking Info:
1. Tracking Date: ____________________________
Qualified Referral? Yes or No
2. Tracking Date: ____________________________
Successful Referral? Yes or No
3. Return to Referring Employee
__________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ (Do not write below this line-For Sales Associate Comments Regarding the Referral)
Follow Up: ___________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ Original-Sales Specialist
Copy-Supervisor
Copy-Yours
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Customer Information
Referral Information
Appointment Information Appointment Results
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Keys To Staff Engagement Knowledge
9 Products 9 Procedures 9 Performance expectations 9 Referral skills
– Tell Me How and Show Me How
Accountability
Communication Leadership
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Identify your cheerleaders!
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Leadership Upper
management participation
9 Make it mandatory Equip managers 9 Referral programs need champions Engage your influential staff 9 Opinion makers influence culture and results
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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If you plan to harvest corn, you need to plant corn.
Wise Nebraska Farmer
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Quality Service Introducing Referrals Creates Change Relationship Growth www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Consider how hard it is to change yourself and you’ll understand what little chance you have in trying to change others. Jacob Braude
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Why Referrals Don’t Happen Lack
of product knowledge Fear of failure Limited engagement/ownership 9 No need 9 No interest 9 No desire Lack of accountability
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Successful Employees Empathy Caring
attitude Genuine interest in the customer Curiosity 9 Know more - help more Product knowledge Proactive approach Ownership in responsibility to help www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Limitations
Customer Objections Employee Objections
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Employee objections are many times rooted in assumptions about what they think their customers will like, want or need. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Training Identify
barriers
9 You won’t get referrals flowing until
employees address their objections
Utilize
stories to enhance understanding 9 How would you feel if...?
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Redirect Objections How
do objections fit with providing customer service? 9 Customer won’t be interested 9 They probably have it somewhere else 9 No need for product until they are older 9 They will want a better rate 9 Somebody else has probably mentioned it 9 The personal banker or lender should make the referral
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Context For Referrals Condition
Employee Response
Customer has a problem Work diligently to fix it Customer has a problem that a new service Proactively suggest it would address Customer has a financial need
We probably don’t know it exists www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Sell your staff initially. Educate them continually.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Successful Training 1. Product features and benefits 2. Suggestive selling 3. Identifying relationship opportunities 4. Benefits for the customer and bank
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Training Conduct base training in groups Train your coaches to coach Conduct skills training one-on-one 9 Review skill 9 Practice skill 9 Assess performance 9 Rinse and repeat…
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Use your top performers to share best practices with newer employees.
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Referral Exercise Help
your staff identify potential
9 Married couple 9 Both work fulltime 9 Two teenage children (13 and 15) 9 Own their home List all the financial services that would be appropriate for this couple...
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Life Changing Events Customer
acquisitions occur around one of these life changing events 9 Marriage or divorce 9 Having a baby 9 Starting a business % 9 Buying a home 9 Getting an inheritance
88
Source: Insurance industry research
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Features And Benefits Customers
buy benefits Banks typically sell features
Features
Benefits
Characteristics of Why the customer a product buys the product
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Simple Techniques
Feature
and the great thing about that is
Benefit www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Suggestive Selling Non-threatening Yes or No
1. Specific 2. Easy-to-understand 3. Appropriate
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Suggestive Selling Would you be interested in (simple description of the product or service)
that (benefit to the customer)
Would you be interested in a savings account that would help you make a little extra money each month? www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
29
Create Exercises/Role Plays Clue My daughter just had a baby. We’re sharing the car. My husband’s car is always in the shop. I’m so busy making gift baskets. I should probably quit my job and do that full-time. I can’t believe the years have flown by. I have friends planning retirement parties. Sue is graduating from high school this spring. She has applied to Kentucky and Northwestern. I don’t think I’ve ever had a check this large before! We just sold our house.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Contests Consistent
with ongoing program performance 9 Consistency will enhance performance Highly focused and visible 9 One product or service recommended Confine contest timing 9 One month preferred Always have a theme www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Balancing Rewards If one of your company values is teamwork, make sure your recognition reflects that desire.
Individ
ual
Team www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Individuals play the game, but teams win championships.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Point-of-Sale Displays
Lobby displays are for the employees.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Refer-A-Friend or Tell-A-Friend
Give employees an excuse to talk about products and offers www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Referral Tracking Don’t wait for the perfect solution to begin your referral program.
Manual
Automated
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Without goals, and plans to reach them, you are like a ship that has set sail with no destination. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Goals Review
prior performance Assess market/product potential Set appropriate goals 9 Understandable 9 Achievable 9 Controllable 9 Tied to activities and/or results Create a system for goal setting www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Appropriate Goals Tie
to core job responsibilities Based on relationship opportunities Utilize flexible goals 9 Large office – higher goal – Group offices by size for contests
9 Relationship manager – higher goal 9 Less customer contact – lower goal
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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First you write down your goal; your second job is to break down your goal into a series of steps, beginning with steps which are absurdly easy. Fitzhugh Dodson
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Goal Worksheet Employee Name Branch/Department
Company Goal
Company
Help employees set goals they can achieve.
Personal Goal
Employee Source for Performance Measurement
Measurement Action Steps and Implementation Strategies 1. 2.
Action Plans
3. 4. 5.
Employee Signature ______________________________ Date __________
Accountability
Manager Signature _______________________________ Date __________
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Coaching Change
your behavior first
9 Then invite participation Recognition is powerful and affordable Help employees understand how they can be successful 9 Recognize attempts, not just success
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Coaches Make
sure referrals remain visible Eliminate excuses Deal with each employee separately Celebrate effort, success and achievement Be honest, direct and caring
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Referrals are a Win-Win. Focus on the future and what can be done, not what shouldn’t be done.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Rewards Reinforce
desired performance
9 Corporate, team, individual Set minimum performance levels Frequency
9 Monthly or end of contest 9 Quarterly is too infrequent
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No employee incentive or reward should ever have a detrimental impact on the customer.
Annette Krosschell
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Positive Reinforcement Managers
must be actively involved Regular reinforcement can modify behavior Watch for behaviors outside the employees comfort zone Take a genuine interest in employee success 9 Do you really care if they succeed? www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
38
Four Step Reinforcement 1. State your observation 2. Explain why it is important to you 3. Praise the behavior 4. Encourage repeat performances
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Flatter me, and I may not believe you. Criticize me, and I may not like you. Ignore me, and I may not forgive you. Encourage me, and I will not forget you.
William Ward
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
39
Contest Rewards Minimum
performance then rewards
9 Use your preset achievement levels Reward team performance 9 Food, activities Reward individual performance 9 Recognition 9 Time-off (even small increments) 9 Cash
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Powerful Rewards Personal
recognition
9 Almost free Peer recognition Time
off
Cash Gifts
and gift cards Points to redeem www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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If you don’t believe you are working at the best bank in town, find a new employer, you will struggle producing referrals.
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Integrated Referral Program Begin
with a clear focus
9 Build on successful behaviors Migrate to making it part of daily staff performance Supervisors and coaches need to be actively involved Complexity
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Things To Avoid Creation
of the perfect program day
one Procrastination 9 Limit the initial structure to simplify decisions and development
Program
introduction without manager understanding and buy-in
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Things To Avoid Complicated
forms or procedures Changing the program in short periods 9 Minimize structural changes 9 Emphasize consistency Don’t get caught saying “we have a new program we are starting”
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
42
Build
a REFERRAL Program Culture
That
Works
Tom Hershberger President [email protected] Twitter @crossfin
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Culture A patterned way in which people do things together.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
1
Referral Cultures Don’t
begin unless you plan to continue 9 Distractions are costly Establish a clear purpose for referrals 9 Reinforce it frequently Support your profit, growth and relationship goals or don’t do it at all – Inconsistency is apparent to employees
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Money And Needs Save
Borrow
Manage 9 Move money 9 Make payments
Protect
9 Short-term 9 Mid-term 9 Long-term
9 Major purchase 9 Ongoing financing
Savings
Loans
Checking
Insurance
CDs
LOC
FDIC
IRAs
ODP
Online banking
Annuities
Leases
Bill Pay
9 Income 9 Assets 9 Retirement
Trust Services
Debit card www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
2
Relationship Development Business Initiative Retention
Growth
Attraction
1
2
3
Current Customers
Prospects
Target Audience www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Relationship development begins after the first purchase is complete. Help employees focus on what’s next, not just what needs to be done now.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
3
1 2
Quality Service
Referrals Relationship Growth www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
In order to succeed, continually sell the idea that referrals are part of good customer service. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
4
Relationship Building Service
Support
Products Referrals
Expertise
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Customers Have Choices
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
5
Reducing Household Losses Products
that reduce lost customers
9 Checking accounts with direct deposit 9 Annuities 9 IRAs 9 Investment funds 9 College savings plans 9 Life insurance 9 Mortgage loans
TowerGroup www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Average Sale Per Referral $11,000
$12,444
$11,250
$10,000
$8,824 $7,246
Year One
Year Two Year Three Year Four
Year Five
Year Six
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
6
Sales and Referrals Product Sales
8,000 7,000 6,000
Referrals
Bank Example
$50,000,000 $40,000,000
5,000
$30,000,000
4,000 3,000
$20,000,000
2,000
$10,000,000
1,000 0
$60,000,000
Year One
Year Two
Year Three
Year Four
Year Five
Year Six
$0
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Great referral programs are first a mindset and second a set of procedures. Procedures alone do not generate results. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
7
Complexity does not improve performance. It only confuses the staff and makes measurement more difficult. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Referral Management Leadership
Decisions
Support
Management and Coaching
Implementation
Forms and Data Entry
Staff Responsibilities
Daily Activities
Operational Procedures
Program Compliance
Performance Reports
Performance Tracking
Goal Setting and Achievement
Success Action Plans
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
8
Who Should Generate Referrals? Referrals
are a way to serve customers Everyone can help serve customers Everyone benefits when customers use more services Therefore,
everyone refers www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
What You Will Hear I
don’t have any customer contact I’m in a support position It’s not my job I don’t know how to make referrals I’m not sure what to refer
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
9
Sell the idea that referrals are part of great customer service.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Job Descriptions Every job description can include relationship expectations.
Proactively promote the bank’s products and services. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Referrals take the extra step to providing the best service possible.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Terminology - - - - - - - -
Lead Introduction Qualified lead Referral Qualified referral Closed referral Account referral Relationship referral
Define a referral before you add complexity with additional components or alternatives.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Bank A It is a referral when…
9 The customer has not previously requested
information about the product 9 The referring employee recognized a need and established the thought with the customer 9 The referring employee plays an active part in the customer setting up the product 9 The sole reason the customer is coming to the bank is because of the referring employee
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Bank B Leads
Referrals
Leads do not qualify 1. Employee discovers the need for fees or contests
It is a lead when...
9 you direct a customer to a product based on the customer’s request for information 9 the customer need is identified by an employee through routine questions asked during a telephone call or visit to the office
2. Employee stimulates customer interest in an idea of a product/service 3. Employee makes the recommendation to meet with a specialist
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Bank C Referral 1. Interactive discussion with a customer, or prospect, that is initiated by the employee.
2. An awareness of a product or service was created and/or a need was identified. 3. The appropriate sales specialist was recommended. 4. The referring employee obtains customer/prospect agreement to meet with, and/or to accept a phone call from, a sales specialist.
5. Generally, the sales specialist is outside of your normal departmental area. 6. An incentive is paid for the referral and is not contingent on a sale or based on the type or dollar amount of any business written or generated.
Appointment Referral 1. Meets all of the criteria of a basic referral. 2. An appointment was facilitated with the help of the referring employee by either a direct personal introduction, if the customer is in the bank, and the timing is good for both you and the sales specialist, or by obtaining the customer’s agreement to meet with the specialist face to face and the appointment is kept. 3. Referral incentive is based upon the appointment generated and is not contingent upon a sale or on the type, or dollar amount of, any resulting business written or generated.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Bank D Referral
The potential service opportunity is initiated by the employee with the customer or prospect The goal is to focus on creating a qualified sales opportunity, appointment or introduction to a salesperson or product specialist The customer needs to provide permission for future contacts from the appropriate bank staff
Qualified Referral
In order to be a qualified referral, the employee must include background and contact information about the customer or prospect, identify the bank service they have suggested and get permission from the customer to have a sales representative contact them, if appropriate. If the employee sets up an appointment for the customer to talk with a sales representative or makes an immediate introduction, it is automatically a qualified referral.
Closed Referral
Any referral that has concluded with the sale of a new bank service
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
13
Forget about leads! Leads
are confusing to employees
Focus
on the one thing that counts
9 Leads are usually low quality referrals 9 Leads can help create a referral
REFERRALS www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Lead and Referral Program
If you can sell it, you can’t refer it. Lead Referral Open referral Closed lead Closed referral Program points
The Union State Bank Lead and Referral Program is designed to encourage relationship development contacts between USB employees and customers and prospects in our trade area. The program is structured to track relationship development activities and to provide rewards to employees that are proactively presenting financial solutions to area residents and businesses. The program components and guidelines are summarized in the following outline.
Referral Program Definitions and Guidelines If you can sell it you can’t refer it. Lead
The employee identifies a potential financial service opportunity The employee provides a sales representative or specialist with basic information about the client and/or financial service opportunity In order to become a qualified lead, the employee must include background information with their lead form that identifies the potential need and provides full contact information for future contacts
Referral
The potential financial service opportunity is initiated by the employee with the customer or prospect The employee must make a recommendation for a financial solution or meeting with a financial specialist The goal is to focus on creating a qualified sales opportunity, appointment or introduction to a salesperson or product specialist The customer needs to provide permission for future contacts from bank staff Qualified referrals must include background information to In order to become a qualified referral, the employee must include background and contact information about the customer or prospect, identify the financial service they have recommended and get permission from the customer to have a sales representative contact them, if appropriate. If the employee sets up an appointment for the customer to meet with a sales representative or makes an immediate introduction, it is automatically a qualified referral.
Open Referral
Any referral that has been initiated by the employee, but has not yet resulted in an appointment with the customer or a sale of a financial service
Closed Lead or Referral
Any lead or referral that has concluded with the sale of a financial service
Lead and Referral Program Points Program Activity
Reward Level
Reward Points
Basic Lead or Referral
1
1 Point
Qualified Lead
2
2 Points
Qualified Referral
3
5 Points
Closed Lead or Referral
4
5 Points
Weekly Goal Achievement
4
10 Points
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
14
The MENU - - -
Basic referral Appointment referral Dollars by product Dollars by position
03/31/2004
Basic Referral Loans
Sales Assoc.
Commercial/Ag(Inc. R.E.)* Residential Mortgage* Consumer H/E, Auto, Personal Credit Cards
Appointment Referral
Sales Support
Sales Assoc.
Sales Support
$5 $5 $2 $1
$10 $10 $ 5 $ 2
$25 $20 $10 $ 2
$50 $40 $20 $ 5
$5 $5
$10 $10
$25 $20
$50 $40
$5 $5 $2 $2
$10 $10 $ 5 $ 5
$20 $20 $10 $10
$40 $40 $20 $20
$5 $5 $5 $2 $2
$10 $10 $10 $ 5 $ 5
$20 $20 $15 $10 $10
$40 $40 $30 $20 $20
$n/a $n/a $2 $5 $5 $2 $2 $1
$n/a $n/a $ 5 $10 $10 $ 5 $ 5 $ 2
$n/a $ 1 $10 $20 $20 $10 $10 $ 2
$n/a $ 2 $20 $40 $40 $20 $20 $ 4
Life Insurance & Investments Long Term Care/Health/Med. Supps. Life Insurance (Unless directly sold by lenders) Annuities REIT Mutual Funds/MMDA’s Stocks & Bonds
Property & Casualty Insurance Ag Property Crop/Hail Business Auto Homeowners
Deposits & Services Telebanking Internet Banking Bill Payer/Cash Mgmt-Payroll/ACH Business Checking CD/IRA/HSA** Personal Checking/MMDA/Savings Gold Club Membership Debit Cards
*Sales Profitability Bonus Paid-Loan Sales
$ 25 $ 50 $100
$ 50,000 - $ 99,999 loan closed. $100,000 - $149,999 loan closed. $150,000 & above loan closed.
**Sales Profitability Bonus Paid-Deposit Sales for CD/IRAcd.
$ 10 $ 25 $ 50
$ 25,000 - $ 49,999 deposit. $ 50,000 - $ 99,999 deposit. $100,000 & above deposit.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Clarify Basic Procedures Responsibilities
-
Referral Incentive Menu
Employees
9 Client contacts 9 Forms and data entry 9 Action plans Managers 9 Set and manage goals 9 Coach performance 9 Reward progress www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
15
Define – Then Design 1. Identify what you have to know 2. Collect only what is needed 3. Provide enough room to write things down
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Referral Information Date_____________ Referred To _______________________________ Referred By________________ ! Customer ! Prospect
! Lead ! Referral
! Referral w/Appointment
Appointment Date/Time_________________|__________
Examples
Sales Rep Initials_________________________
Name ___________________________________________________________________________________ Address, City, St, Zip _______________________________________________________________________ The best day to call for appointment is _______________________ Best Time _________________________ Telephone number to call___________________________________
Financial Service Interest (check all that apply) Property/Casualty Insurance
Loans
! Commercial/Commercial Real Estate ! Ag Production/Real Estate ! Residential Real Estate-Purchase ! Residential Real Estate-Refinance ! New Construction ! Home Improvement ! Home Equity/HELOC ! Recreational Vehicle ! Auto/Motorcycle ! Personal Loan ! Credit Cards
! Farm Property ! Crop/Hail ! Business ! Health ! Homeowners ! Auto/Motor Cycle ! Recreational Vehicle ! Boat/Snow Mobile ! Motorcycle
Deposits & Services
Investments & Life Insurance
! Business Checking ! Personal Checking ! CD ! Savings ! Money Market ! Debit Card ! Internet Banking and Bill Pay ! Business Cash Management ! Health Savings Account
! Long Term Care ! Life Insurance ! Annuities ! 401(k) ! Estate Planning ! Stocks, Bonds, Mutual Funds ! IRA ! Retirement/Investment Planning
Lead/Referral Information o Lead
Date
o Referral
o Approved
Customer/Prospect Name Address
City
State
Home Phone
Work Phone
Zip Best Time to Call
Lead/Referral Information
Background Information
Follow Up
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
REFERRAL FORM
Client Referral Opportunity Date_____________ Referred To ___________________ Referred By__________________________
Referred To:____________________________
Prospect's Name:____________________________________________________________
Referred By:____________________________
Prospect's Phone Numbers: Home____________________Work _____________________
Date: _________________________________
The best time to reach prospect is: ______________________________________________
RETAIL BANKING
______ Referral-Appt. ______ Referral-Basic
______ Prospect ______ Customer
Appointment Date/Time__________________ Sales Specialist Initials____________________
Name: ___________________________________________________________________________________ Address: _________________________________________________________________________________ Est. Age: ______(21-30) _______(31-40) _______(41-50) ______(51-60) _________(61-70)________(70+) The best day to call for appointment is: _______________________ Best Time: ______________________ Telephone number to call___________________________________
Loans:
Property & Casualty Insurance:
______Commercial/Commercial Real Estate ______Ag Production/Real Estate ______Residential Real Estate-Purchase ______Residential Real Estate-Refinance ______New Construction ______Home Improvement ______Home Equity/HELOC ______Recreational Vehicle ______Auto/Motor Cycle ______Personal Loan ______Credit Cards
______Farm Property ______Crop/Hail ______Business ______Health ______Homeowners ______Auto/Motor Cycle ______Recreational Vehicle ______Boat/Snow Mobile ______Motor Cycle ______Specialty Coverages
Deposits & Services:
Investments & Life Insurance:
______Business Checking ______Personal Checking ______CD/IRA/HSA’s ______Gold Club/Gold Club Trip ______Hi Perf. Svgs., Plat. Svgs., MMDA ______Debit Card ______Internet Banking/Bus.Csh.Mgmt. ______Bill Payer ______Bus.Csh.Mgt.-Payroll/ACH ______Other_________________ Background Information:
______Long Term Care ______Life Insurance ______Tax Deferred Annuities ______401(k)/SEP ______Estate Planning ______ Stocks, Bonds, Mutual Funds ______ Princpl.Cash Mgmt. Account ______ IRA/401-K Rollover ______ REIT
! ! ! ! ! ! ! ! ! !
- CHECKING - Savings - CHECK CARD - Line of Credit - Kids' Klub - Youth Savings - New CD - Renewal CD - Bank@Home - Bill Pay
MORTGAGE LOANS ! ! ! ! ! !
- REFINANCE - 1ST TIME HOME BUYER - HOME BUYER - HUD - CONSTRUCTION - RENTAL PROPERTY
CONSUMER LOANS ! ! ! ! !
- VEHICLE LOAN - HOME EQUITY LOAN - HELOC - PERSONAL LOAN - NE ENERGY LOAN
INVESTMENT CENTER ! ! ! ! ! ! ! ! ! ! !
- MUTUAL FUNDS - STOCKS - BONDS - ANNUITIES - LIFE INSURANCE - DISABILITY INSURANCE - FINANCIAL STRATEGIES PLAN - 401K ROLLOVER - COLLEGE SAVINGS PLAN - ESTATE PLANNING - LONG TERM CARE
BUSINESS BANKING ! ! ! !
- REAL ESTATE - BUSINESS LOAN - BUSINESS LOC - BUSINESS CHECKING
Additional Comments:
Tracking Info:
1. Tracking Date: ____________________________
Qualified Referral? Yes or No
2. Tracking Date: ____________________________
Successful Referral? Yes or No
3. Return to Referring Employee
__________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ (Do not write below this line-For Sales Associate Comments Regarding the Referral)
Follow Up: ___________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________ Original-Sales Specialist
Copy-Supervisor
Copy-Yours
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Customer Information
Referral Information
Appointment Information Appointment Results
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Keys To Staff Engagement Knowledge
9 Products 9 Procedures 9 Performance expectations 9 Referral skills
– Tell Me How and Show Me How
Accountability
Communication Leadership
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Identify your cheerleaders!
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Leadership Upper
management participation
9 Make it mandatory Equip managers 9 Referral programs need champions Engage your influential staff 9 Opinion makers influence culture and results
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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If you plan to harvest corn, you need to plant corn.
Wise Nebraska Farmer
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Quality Service Introducing Referrals Creates Change Relationship Growth www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Consider how hard it is to change yourself and you’ll understand what little chance you have in trying to change others. Jacob Braude
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Why Referrals Don’t Happen Lack
of product knowledge Fear of failure Limited engagement/ownership 9 No need 9 No interest 9 No desire Lack of accountability
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Successful Employees Empathy Caring
attitude Genuine interest in the customer Curiosity 9 Know more - help more Product knowledge Proactive approach Ownership in responsibility to help www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Limitations
Customer Objections Employee Objections
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Employee objections are many times rooted in assumptions about what they think their customers will like, want or need. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Training Identify
barriers
9 You won’t get referrals flowing until
employees address their objections
Utilize
stories to enhance understanding 9 How would you feel if...?
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
23
Redirect Objections How
do objections fit with providing customer service? 9 Customer won’t be interested 9 They probably have it somewhere else 9 No need for product until they are older 9 They will want a better rate 9 Somebody else has probably mentioned it 9 The personal banker or lender should make the referral
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Context For Referrals Condition
Employee Response
Customer has a problem Work diligently to fix it Customer has a problem that a new service Proactively suggest it would address Customer has a financial need
We probably don’t know it exists www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Sell your staff initially. Educate them continually.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Successful Training 1. Product features and benefits 2. Suggestive selling 3. Identifying relationship opportunities 4. Benefits for the customer and bank
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Training Conduct base training in groups Train your coaches to coach Conduct skills training one-on-one 9 Review skill 9 Practice skill 9 Assess performance 9 Rinse and repeat…
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Use your top performers to share best practices with newer employees.
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Referral Exercise Help
your staff identify potential
9 Married couple 9 Both work fulltime 9 Two teenage children (13 and 15) 9 Own their home List all the financial services that would be appropriate for this couple...
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Life Changing Events Customer
acquisitions occur around one of these life changing events 9 Marriage or divorce 9 Having a baby 9 Starting a business % 9 Buying a home 9 Getting an inheritance
88
Source: Insurance industry research
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Features And Benefits Customers
buy benefits Banks typically sell features
Features
Benefits
Characteristics of Why the customer a product buys the product
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Simple Techniques
Feature
and the great thing about that is
Benefit www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Suggestive Selling Non-threatening Yes or No
1. Specific 2. Easy-to-understand 3. Appropriate
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Suggestive Selling Would you be interested in (simple description of the product or service)
that (benefit to the customer)
Would you be interested in a savings account that would help you make a little extra money each month? www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
29
Create Exercises/Role Plays Clue My daughter just had a baby. We’re sharing the car. My husband’s car is always in the shop. I’m so busy making gift baskets. I should probably quit my job and do that full-time. I can’t believe the years have flown by. I have friends planning retirement parties. Sue is graduating from high school this spring. She has applied to Kentucky and Northwestern. I don’t think I’ve ever had a check this large before! We just sold our house.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Contests Consistent
with ongoing program performance 9 Consistency will enhance performance Highly focused and visible 9 One product or service recommended Confine contest timing 9 One month preferred Always have a theme www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
30
Balancing Rewards If one of your company values is teamwork, make sure your recognition reflects that desire.
Individ
ual
Team www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Individuals play the game, but teams win championships.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Point-of-Sale Displays
Lobby displays are for the employees.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Refer-A-Friend or Tell-A-Friend
Give employees an excuse to talk about products and offers www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
32
Referral Tracking Don’t wait for the perfect solution to begin your referral program.
Manual
Automated
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Without goals, and plans to reach them, you are like a ship that has set sail with no destination. www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
33
Goals Review
prior performance Assess market/product potential Set appropriate goals 9 Understandable 9 Achievable 9 Controllable 9 Tied to activities and/or results Create a system for goal setting www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Appropriate Goals Tie
to core job responsibilities Based on relationship opportunities Utilize flexible goals 9 Large office – higher goal – Group offices by size for contests
9 Relationship manager – higher goal 9 Less customer contact – lower goal
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
34
First you write down your goal; your second job is to break down your goal into a series of steps, beginning with steps which are absurdly easy. Fitzhugh Dodson
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Goal Worksheet Employee Name Branch/Department
Company Goal
Company
Help employees set goals they can achieve.
Personal Goal
Employee Source for Performance Measurement
Measurement Action Steps and Implementation Strategies 1. 2.
Action Plans
3. 4. 5.
Employee Signature ______________________________ Date __________
Accountability
Manager Signature _______________________________ Date __________
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35
Coaching Change
your behavior first
9 Then invite participation Recognition is powerful and affordable Help employees understand how they can be successful 9 Recognize attempts, not just success
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Coaches Make
sure referrals remain visible Eliminate excuses Deal with each employee separately Celebrate effort, success and achievement Be honest, direct and caring
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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Referrals are a Win-Win. Focus on the future and what can be done, not what shouldn’t be done.
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Rewards Reinforce
desired performance
9 Corporate, team, individual Set minimum performance levels Frequency
9 Monthly or end of contest 9 Quarterly is too infrequent
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
37
No employee incentive or reward should ever have a detrimental impact on the customer.
Annette Krosschell
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Positive Reinforcement Managers
must be actively involved Regular reinforcement can modify behavior Watch for behaviors outside the employees comfort zone Take a genuine interest in employee success 9 Do you really care if they succeed? www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
38
Four Step Reinforcement 1. State your observation 2. Explain why it is important to you 3. Praise the behavior 4. Encourage repeat performances
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Flatter me, and I may not believe you. Criticize me, and I may not like you. Ignore me, and I may not forgive you. Encourage me, and I will not forget you.
William Ward
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
39
Contest Rewards Minimum
performance then rewards
9 Use your preset achievement levels Reward team performance 9 Food, activities Reward individual performance 9 Recognition 9 Time-off (even small increments) 9 Cash
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Powerful Rewards Personal
recognition
9 Almost free Peer recognition Time
off
Cash Gifts
and gift cards Points to redeem www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
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If you don’t believe you are working at the best bank in town, find a new employer, you will struggle producing referrals.
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Integrated Referral Program Begin
with a clear focus
9 Build on successful behaviors Migrate to making it part of daily staff performance Supervisors and coaches need to be actively involved Complexity
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41
Things To Avoid Creation
of the perfect program day
one Procrastination 9 Limit the initial structure to simplify decisions and development
Program
introduction without manager understanding and buy-in
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
Things To Avoid Complicated
forms or procedures Changing the program in short periods 9 Minimize structural changes 9 Emphasize consistency Don’t get caught saying “we have a new program we are starting”
www.crowww.crossfinancial.com ssfinancial.com Lincoln, NE
42
