If you know anything about my professional career, I’ve done a lot of work in the broad area of peak performance, but more than anything else I’m branded as a business development and sales guru. I wear that badge with pride since I’ve been teaching sales and management teams how to sell with complete integrity and go against the grain of what is common practice for many years. I know what works and what doesn’t and I see much more of the “what NOT to do” when I’m meeting with potential clients or seeing what is being disseminated out there under the guise of effective sales training.
Lately, I’ve seen a pattern of developing conditions that most organizations are failing to address properly. So my bold prediction is this:
The tipping point is here. Businesses disruption is about to cause a big path of destruction for Associations that don’t take important corrective action.
We are in a unique time in history for many reasons. There is a perfect storm brewing and those who weather the storm will set themselves up for healthy growth and profits for years to come. And those who don’t weather it….well, let’s just say, it won’t be pretty! In fact, I think what is done in the next couple of years will have a lasting impact that will be felt for the next decade.
There are five key factors which are converging that Associations must address with their sales and marketing strategy immediately.
1. More Competition
Competition is at an all-time high. Accessibility to products and services is easier than ever for the customer. And there are plenty of competitors who want to cherry-pick the best customers for their own portfolios.
2. Lack of Differentiation
With all the competition, it’s harder than ever to differentiate between similar financial institutions. So why should I want to get a loan with your Association instead of the local community bank or large commercial bank? Or in some cases, where there are overlapping territories with another Association, why would I choose you versus them? If you can’t clearly and quickly (10 seconds or less) articulate your difference with confidence, you lose.
3. Less Client Loyalty
Loyalty is not a given. In fact, in a recent discussion I had with a group of CEOs, an overriding complaint was that customer loyalty is dying. In my work, I wouldn’t say customer loyalty is dead, but there are more factors that are impacting loyalty and you can’t continue to do things the same old way and get raving fans. You have to recognize that buying behavior is different with different generations and that is one area where disruption is about to explode.
In addition, competitive pressures and changing technology are among the factors impacting loyalty. Associations that are going to thrive must maximize and deliver value to customers, not just give it lip service.
4. Price Sensitivity
Customers are more rate-sensitive than ever. It’s easy to shop the competition online and find the best deal. Quality is expected. Customer service is demanded. If you’ve failed to differentiate yourself in a meaningful way, you are going to be stuck in a rate war where you are slashing profits or losing business to lower-priced competitors. Neither bodes well for your long-term success.
5. Passing Of The Guard
In most Associations, there is a tremendous brain drain happening. Senior team members are hitting retirement age or choosing to exit early to pursue other opportunities. At the same time, Millenials are joining the ranks. This matters and it matters now. Managing and leveraging the passing of the guard is critical to preserving key knowledge and accounts. The passing of the guard means that Associations have to get their younger Millenials up-to-speed while learning how to tap into their growing power and influence in the workplace.
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So what does my prediction and the alignment of the perfect storm conditions mean to your Association? It means that your profits and revenue growth are in jeopardy if you do not have a clear and effective way to address the conditions above that will cause ongoing disruption. And it can’t just be addressed on a macro-level, although setting the course and getting the entire team on the same page is a critical function that the senior team must facilitate. Beyond that, however, each employee who has customer interaction, particularly those in a sales or business development role, must be trained and empowered to charge ahead on the right path.
If you are interested in a Sales & Marketing Retreat to address these issues or specific training for senior team members, managers and loan officers; contact Will@SeedingGrowth.com.