Accelerating Sales Performance in Retail Banking - BTS

copy Copyright BTS By Michael Collins

Accelerating Performance in Retail BankingImproving Customer Loyalty Through Your People

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

About BTS

Michael Collins is a Director in the BTS Sales Practice He focuses on providing thought leadership to help clients develop new selling capabilities transform the sales organization and execute corporate strategy

Prior to his role at BTS Michael held senior sales leadership and consulting positions with companies in the financial services high tech and telecommunication industries Michael led the sales force for a $100 million financial services outsourcing company He has spent nearly two decades working with and advising clients such as IBM American Express and General Electric on solutions development and go-to-market strategies

BTS is a world-leading strategy implementation firm The company accelerates execution by ensuring the workforce is aligned to the strategy has the right mindset and has mastered the capabilities needed to deliver business results BTS leverages customized business simulations and experiential learning initiatives to develop the business acumen leadership and sales capabilities necessary for superior strategy execution Partnering with todayrsquos leading corporations BTS consultants bring passion and deep industry expertise to deliver high-impact solutions that help clients achieve better results faster

Headquartered in Stockholm BTS has approximately 350 professionals in more than 25 offices located on six continents Partnering with nearly 400 organizations including more than 30 of the worldrsquos largest corporations BTSrsquos major clients are some of the most respected names in business Anglo American ATampT Chevron Coca-Cola Ericsson Hewlett-Packard Rio Tinto Sony Telefonica and Unilever Among the current clients of the BTS Sales Practice are Accenture Autodesk Bancomer Cisco IBM MetLife Microsoft Nike Oracle Pepsi SAP Schindler Sodexo Standard Bank UCB UPS and VMware

BTS is a public company listed on the NASDAQ-OMX Stockholm trading under the symbol BTS B

For more information please visit wwwbtscom

About the Author

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

About BTS

Michael Collins is a Director in the BTS Sales Practice He focuses on providing thought leadership to help clients develop new selling capabilities transform the sales organization and execute corporate strategy

Prior to his role at BTS Michael held senior sales leadership and consulting positions with companies in the financial services high tech and telecommunication industries Michael led the sales force for a $100 million financial services outsourcing company He has spent nearly two decades working with and advising clients such as IBM American Express and General Electric on solutions development and go-to-market strategies

BTS is a world-leading strategy implementation firm The company accelerates execution by ensuring the workforce is aligned to the strategy has the right mindset and has mastered the capabilities needed to deliver business results BTS leverages customized business simulations and experiential learning initiatives to develop the business acumen leadership and sales capabilities necessary for superior strategy execution Partnering with todayrsquos leading corporations BTS consultants bring passion and deep industry expertise to deliver high-impact solutions that help clients achieve better results faster

Headquartered in Stockholm BTS has approximately 350 professionals in more than 25 offices located on six continents Partnering with nearly 400 organizations including more than 30 of the worldrsquos largest corporations BTSrsquos major clients are some of the most respected names in business Anglo American ATampT Chevron Coca-Cola Ericsson Hewlett-Packard Rio Tinto Sony Telefonica and Unilever Among the current clients of the BTS Sales Practice are Accenture Autodesk Bancomer Cisco IBM MetLife Microsoft Nike Oracle Pepsi SAP Schindler Sodexo Standard Bank UCB UPS and VMware

BTS is a public company listed on the NASDAQ-OMX Stockholm trading under the symbol BTS B

For more information please visit wwwbtscom

About the Author

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Customer Loyalty Challenges and Opportunities

How well do banks attract and retain their most profitable customers

As industries and regions emerge from the global recession many companies have a renewed focus on driving profitable revenue growth Nowhere is this more important than in the banking industry in the United States

In banking a critical lever for profitable growth is the customer According to a 2012 study by Bain the typical affluent US customer who is a promoter of the bank is worth USD 10000 more than one who is a detractor

In a cross-industry study of Net Promoter Scores (NPS) by the Temkin Group banking represented the extremes when it comes to customer engagement and loyalty

On the positive side USAA earned the highest scores across all industries when customers were asked whether they would recommend the company to a friend

At the opposite end were several global banks where the banksrsquo detractors nearly equaled ndash or even outnumbered ndash the banksrsquo promoters

-20 -10 0 10 20 30 40 50 60 70 80

Auto dealers34 40 48

Software companies23 35 52

Grocery chains14 33 55

Insurance carriers20 31 75

Investment firms20 30 38

Retailers9 30 54

Parcel delivery services20 30 35

Hotel chainsndash3 29 60

Computer makers3 29 51

Fast food chains2 27 48

Appliance makers18 25 39

Airlines8 21 49

Wireless carriers13 19 28

Car rental agencies11 18 24

Banksndash26 19 77

Credit card issuersndash24 13 29

Internet service providersndash2 13 31

Health plansndash4 11 28

TV service providersndash15 9 44

HighNPS

LowNPS Avg

Range of Net Promoter Scores (NPS) Across Industries

Source Temkin Group

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Customer Loyalty Challenges and Opportunities

How well do banks attract and retain their most profitable customers

As industries and regions emerge from the global recession many companies have a renewed focus on driving profitable revenue growth Nowhere is this more important than in the banking industry in the United States

In banking a critical lever for profitable growth is the customer According to a 2012 study by Bain the typical affluent US customer who is a promoter of the bank is worth USD 10000 more than one who is a detractor

In a cross-industry study of Net Promoter Scores (NPS) by the Temkin Group banking represented the extremes when it comes to customer engagement and loyalty

On the positive side USAA earned the highest scores across all industries when customers were asked whether they would recommend the company to a friend

At the opposite end were several global banks where the banksrsquo detractors nearly equaled ndash or even outnumbered ndash the banksrsquo promoters

-20 -10 0 10 20 30 40 50 60 70 80

Auto dealers34 40 48

Software companies23 35 52

Grocery chains14 33 55

Insurance carriers20 31 75

Investment firms20 30 38

Retailers9 30 54

Parcel delivery services20 30 35

Hotel chainsndash3 29 60

Computer makers3 29 51

Fast food chains2 27 48

Appliance makers18 25 39

Airlines8 21 49

Wireless carriers13 19 28

Car rental agencies11 18 24

Banksndash26 19 77

Credit card issuersndash24 13 29

Internet service providersndash2 13 31

Health plansndash4 11 28

TV service providersndash15 9 44

HighNPS

LowNPS Avg

Range of Net Promoter Scores (NPS) Across Industries

Source Temkin Group

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

In the United States customer loyalty varies widely across different banking models Among direct banks and credit unions loyalty is strong and continuing to improve Regional banks have seen an increase in loyalty starting from very low NPS However national banks continue to struggle with customer loyalty Only recently have national banks seen their number of promoters exceed detractors according to Bain

In addition wealthier customers in the United States tend to be the least loyal national banks are particularly weak in this segment For national banks households with more than USD 1 million of investable assets have a negative eight percent NPS for households with assets under USD 100000 that number rises to positive four percent NPS

The implications of high churn and low NPS for large national banks in the United States are significant A recent study of banking ldquobrand vulnerabilityrdquo by cg42 Consulting estimates that poor customer satisfaction will cause the top 10 banks in the United States to lose a combined USD 92 billion in deposits and USD 5 billion in revenues in the next year

80

Net Promoter Score by Bank Model (2012)

74

60

40

20

0

64

45

21

3

ndash20Direct banks Credit unions Community banks Regional banks National banks

Source BainResearch Now US NPS survey 2012 (n=74700)

United States

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

In the United States customer loyalty varies widely across different banking models Among direct banks and credit unions loyalty is strong and continuing to improve Regional banks have seen an increase in loyalty starting from very low NPS However national banks continue to struggle with customer loyalty Only recently have national banks seen their number of promoters exceed detractors according to Bain

In addition wealthier customers in the United States tend to be the least loyal national banks are particularly weak in this segment For national banks households with more than USD 1 million of investable assets have a negative eight percent NPS for households with assets under USD 100000 that number rises to positive four percent NPS

The implications of high churn and low NPS for large national banks in the United States are significant A recent study of banking ldquobrand vulnerabilityrdquo by cg42 Consulting estimates that poor customer satisfaction will cause the top 10 banks in the United States to lose a combined USD 92 billion in deposits and USD 5 billion in revenues in the next year

80

Net Promoter Score by Bank Model (2012)

74

60

40

20

0

64

45

21

3

ndash20Direct banks Credit unions Community banks Regional banks National banks

Source BainResearch Now US NPS survey 2012 (n=74700)

United States

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

In a recent ldquovoice of the customerrdquo study by Capgemini customer experience was shown to be highly correlated to customer loyalty In fact a positive customer experience ndash rather than high customer satisfaction ndash proved to be a stronger predictor of retention Banks that pay attention only to satisfaction rather than focusing on the customer experience may overestimate a customerrsquos likelihood to stay with the bank

So what drives a positive customer experience In most regions of the world customers cited quality of service as the most important factor influencing their decision to stay or leave the bank (In North America fees were the 1 factor followed closely by quality of service)

Beyond quality of service the study found that understanding customers and their needs is a significant predictor of customer experience Globally an average of 78 percent of customers with positive experiences said they believe their banks are aware of their needs Conversely only 31 percent of customers with negative experiences said they believe their banks understood their needs

Customer Experience and Customer Understanding

Source Capgemini

Correlation BETWEEN Banksrsquo Knowledge of The Customersrsquo Needs and Customer Experience

Of the Banking Customers with a Positive Experience What Percentage Feel Their Banks

HAVE Good Knowledge of Their Needs () 2013

834 Latin America

North America

Central Europe

Asia-Pacific

Middle East amp Africa

Western Europe

829

805

791

775

762

338

457

284

348

316

268

Of the Banking Customers with Negative Experience What Percentage Feel Their Banks

HAVE Good Knowledge of Their Needs () 2013

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

In a recent ldquovoice of the customerrdquo study by Capgemini customer experience was shown to be highly correlated to customer loyalty In fact a positive customer experience ndash rather than high customer satisfaction ndash proved to be a stronger predictor of retention Banks that pay attention only to satisfaction rather than focusing on the customer experience may overestimate a customerrsquos likelihood to stay with the bank

So what drives a positive customer experience In most regions of the world customers cited quality of service as the most important factor influencing their decision to stay or leave the bank (In North America fees were the 1 factor followed closely by quality of service)

Beyond quality of service the study found that understanding customers and their needs is a significant predictor of customer experience Globally an average of 78 percent of customers with positive experiences said they believe their banks are aware of their needs Conversely only 31 percent of customers with negative experiences said they believe their banks understood their needs

Customer Experience and Customer Understanding

Source Capgemini

Correlation BETWEEN Banksrsquo Knowledge of The Customersrsquo Needs and Customer Experience

Of the Banking Customers with a Positive Experience What Percentage Feel Their Banks

HAVE Good Knowledge of Their Needs () 2013

834 Latin America

North America

Central Europe

Asia-Pacific

Middle East amp Africa

Western Europe

829

805

791

775

762

338

457

284

348

316

268

Of the Banking Customers with Negative Experience What Percentage Feel Their Banks

HAVE Good Knowledge of Their Needs () 2013

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

BTS has been studying customer experience during the buying decision process across multiple industries We have discovered a significant difference between the behaviors that customers seek and what they actually get from salespeople We call this difference a ldquovalue gaprdquo For more information on the results of that study see ldquoClosing the Value Gaprdquo

In banking the implications of the value gap can be seen in longer sales cycles more price pressure and less customer loyalty

So what are the specific behaviors that customers are looking for in banking professionals And where are the biggest gaps

Our research shows different gaps in different industries For clients of financial institutions three ldquovalue elementsrdquo consistently show the largest gaps

Advance ndash Reflects the ability for a producer to move a sale forward in a way that is consistent with the customerrsquos buying decision process The large value gap (08) in what customers seek versus how producers behave likely indicates producers who recommend a product too soon in the buying cycle or recommend a product that does not truly meet the clientrsquos needs

Customer Understanding ndash Indicates the extent to which a producer understands the needs and aspirations of the client The significant value gap (07) is consistent with industry studies cited earlier Banking clients ndash particularly wealthier clients of large national banks ndash do not feel that

Understanding the Value Gap in Banking

producers take the time to understand their goals and aspirations for banking and investing

Plan ndash Reflects the analysis and planning performed by the producer prior to interaction with the client The value gap (07) is consistent with poor Advance and Customer Understanding scores Clients often get the sense that the producer is not prepared to conduct a sales meeting in a way that meets the buying decision process and client banking needs

Value Element Definition What Customerslsquos Seek vsHow Producers Behave

Value Gap

Advance How you move the sale forward 08

CustomerUnderstanding

What you know about your clientrsquos banking needs and aspirations

07

Plan What you do before a client interaction 07

Engage How you articulate the value of your offerings 06

Manage How you build your overall book of business 06

Discover How you determine what clients value 05

CollaborateHow you work with others in your organization

03

Value Gaps for Financial Institutions

25

17

23

16

26

19

24

18

27

21

23

18

23

20

Preferred Behavior Most Typical Behavior

Source BTS

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

BTS has been studying customer experience during the buying decision process across multiple industries We have discovered a significant difference between the behaviors that customers seek and what they actually get from salespeople We call this difference a ldquovalue gaprdquo For more information on the results of that study see ldquoClosing the Value Gaprdquo

In banking the implications of the value gap can be seen in longer sales cycles more price pressure and less customer loyalty

So what are the specific behaviors that customers are looking for in banking professionals And where are the biggest gaps

Our research shows different gaps in different industries For clients of financial institutions three ldquovalue elementsrdquo consistently show the largest gaps

Advance ndash Reflects the ability for a producer to move a sale forward in a way that is consistent with the customerrsquos buying decision process The large value gap (08) in what customers seek versus how producers behave likely indicates producers who recommend a product too soon in the buying cycle or recommend a product that does not truly meet the clientrsquos needs

Customer Understanding ndash Indicates the extent to which a producer understands the needs and aspirations of the client The significant value gap (07) is consistent with industry studies cited earlier Banking clients ndash particularly wealthier clients of large national banks ndash do not feel that

Understanding the Value Gap in Banking

producers take the time to understand their goals and aspirations for banking and investing

Plan ndash Reflects the analysis and planning performed by the producer prior to interaction with the client The value gap (07) is consistent with poor Advance and Customer Understanding scores Clients often get the sense that the producer is not prepared to conduct a sales meeting in a way that meets the buying decision process and client banking needs

Value Element Definition What Customerslsquos Seek vsHow Producers Behave

Value Gap

Advance How you move the sale forward 08

CustomerUnderstanding

What you know about your clientrsquos banking needs and aspirations

07

Plan What you do before a client interaction 07

Engage How you articulate the value of your offerings 06

Manage How you build your overall book of business 06

Discover How you determine what clients value 05

CollaborateHow you work with others in your organization

03

Value Gaps for Financial Institutions

25

17

23

16

26

19

24

18

27

21

23

18

23

20

Preferred Behavior Most Typical Behavior

Source BTS

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Changing the Customer Experience in Banking E=AMC

So how can banks take action to close the value gaps and improve customer experience How can your people in the branches help the bank attract and retain your most valuable clients

In working with many of the worldrsquos leading companies for the last 25 years BTS has developed a framework that captures the inner architecture of exceptional strategy execution We call it

This equation highlights the three critical forces that power exceptional strategy execution Alignment Mindset and Capability We have found that companies achieve better results faster when the workforce is aligned to the strategy has the right mindset to approach execution with a sense of urgency and purpose and has mastered the capabilities needed to execute

Generating profitable revenue growth through greater customer-centricity and improved loyalty is a banking strategy worth considering But successfully executing on this strategy requires a new set of capabilities for your key client-facing personnel What capabilities have the greatest impact on customer experience and loyalty How can a bank best develop these capabilities throughout the organization

Strategy Results

Peopleunderstandthe strategy

People areengaged bythe strategy

People have theskills they needto execute

Alignment Mindset Capabilities

E=

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Changing the Customer Experience in Banking E=AMC

So how can banks take action to close the value gaps and improve customer experience How can your people in the branches help the bank attract and retain your most valuable clients

In working with many of the worldrsquos leading companies for the last 25 years BTS has developed a framework that captures the inner architecture of exceptional strategy execution We call it

This equation highlights the three critical forces that power exceptional strategy execution Alignment Mindset and Capability We have found that companies achieve better results faster when the workforce is aligned to the strategy has the right mindset to approach execution with a sense of urgency and purpose and has mastered the capabilities needed to execute

Generating profitable revenue growth through greater customer-centricity and improved loyalty is a banking strategy worth considering But successfully executing on this strategy requires a new set of capabilities for your key client-facing personnel What capabilities have the greatest impact on customer experience and loyalty How can a bank best develop these capabilities throughout the organization

Strategy Results

Peopleunderstandthe strategy

People areengaged bythe strategy

People have theskills they needto execute

Alignment Mindset Capabilities

E=

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Recent research by BTS shows that for many customers the buying decision is more complex than ever Faced with a myriad of choices banking clients ask themselves a myriad of questions Which investment products make the most sense for me How do I get the most value for my money Does it make sense for me to work with one financial institution or more than one If I have questions about products or services who is going to pick up the phone and help me

As bankers you may think of yourselves as presenting a great product or solution to the customer But your clients may see this completely differently They may see too many choices without clear differentiators Faced with more choices than ever the customers do not want to make their purchase decision just based on price or convenience

Instead what customers today want is a navigator They have a destination in mind Typically that destination is defined by the personal aspirations they want to achieve and targets they would like to hit They may or may not know the best path to take but they will engage with someone they believe will guide them toward that destination They seek salespeople who understand their priorities and can chart new trails based on those priorities For more on this topic see ldquoSalesperson as Navigatorrdquo

The bank that is able to sell and service clients this way will win the battle of client loyalty and retention

An Emerging Key Capability Salesperson as Navigator

What Selling Looks Like to Producers What Buying Looks Like to Clients

Product Selling

Focuses discussion on product or service needs the client needs to fulfill

Focuses discussion on specific problems or issues the client needs to resolve

Focuses discussion on the aspirations of the client and how to achieve them

Solution Selling Accelerator Selling

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Recent research by BTS shows that for many customers the buying decision is more complex than ever Faced with a myriad of choices banking clients ask themselves a myriad of questions Which investment products make the most sense for me How do I get the most value for my money Does it make sense for me to work with one financial institution or more than one If I have questions about products or services who is going to pick up the phone and help me

As bankers you may think of yourselves as presenting a great product or solution to the customer But your clients may see this completely differently They may see too many choices without clear differentiators Faced with more choices than ever the customers do not want to make their purchase decision just based on price or convenience

Instead what customers today want is a navigator They have a destination in mind Typically that destination is defined by the personal aspirations they want to achieve and targets they would like to hit They may or may not know the best path to take but they will engage with someone they believe will guide them toward that destination They seek salespeople who understand their priorities and can chart new trails based on those priorities For more on this topic see ldquoSalesperson as Navigatorrdquo

The bank that is able to sell and service clients this way will win the battle of client loyalty and retention

An Emerging Key Capability Salesperson as Navigator

What Selling Looks Like to Producers What Buying Looks Like to Clients

Product Selling

Focuses discussion on product or service needs the client needs to fulfill

Focuses discussion on specific problems or issues the client needs to resolve

Focuses discussion on the aspirations of the client and how to achieve them

Solution Selling Accelerator Selling

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

BTS has been working with banking clients around the world to enhance client-centricity improve the buying experience and increase client loyalty Here are two examples of how our clients have addressed the challenge of selling and servicing the client

Client Leadership at UBS

UBS was seeking to deepen client relationships and generate new business by generating referrals between business divisions The bank needed a global solution that would help directors in client-facing functions to create cross-selling opportunities

UBS turned to BTS to develop a learning experience for key producers in wealth management asset management and investment banking The simulation-based program brought together senior executive directors and managing directors in the Americas Europe and Asia

The Client Leadership Experience was two days of in-depth learning and application work BTS created a customized Role Play Simulation where cross-business group collaboration and integrated thinking are keys to success Eight hours of the two-day program were focused on the Role Play Simulation in which UBS executives participated by playing the three clients The simulation was highly interactive and allowed UBS colleagues to respond to realistic client scenarios and business opportunities The role playing also provided the opportunity to learn best practices for cross-selling

The simulation was coupled with application work in business development sessions where small group discussion identified cross-business-group client opportunities These small groups worked on developing action plans for implementation after the Client Leadership Experience

Best practices were also shared by top executives from UBS who hosted each program

Results of the Initiative

The Client Leadership Experience consisting of 17 regional workshops each focusing on a specific client segment such as family offices hedge funds and financial institutions or on a specific region such as North America brought together nearly 500 senior client-facing participants Close to 400 cross-divisional client service opportunities were shared ultimately bringing in more than USD 300 million in new revenues and almost USD 1 billion in net new assets to UBS

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

BTS has been working with banking clients around the world to enhance client-centricity improve the buying experience and increase client loyalty Here are two examples of how our clients have addressed the challenge of selling and servicing the client

Client Leadership at UBS

UBS was seeking to deepen client relationships and generate new business by generating referrals between business divisions The bank needed a global solution that would help directors in client-facing functions to create cross-selling opportunities

UBS turned to BTS to develop a learning experience for key producers in wealth management asset management and investment banking The simulation-based program brought together senior executive directors and managing directors in the Americas Europe and Asia

The Client Leadership Experience was two days of in-depth learning and application work BTS created a customized Role Play Simulation where cross-business group collaboration and integrated thinking are keys to success Eight hours of the two-day program were focused on the Role Play Simulation in which UBS executives participated by playing the three clients The simulation was highly interactive and allowed UBS colleagues to respond to realistic client scenarios and business opportunities The role playing also provided the opportunity to learn best practices for cross-selling

The simulation was coupled with application work in business development sessions where small group discussion identified cross-business-group client opportunities These small groups worked on developing action plans for implementation after the Client Leadership Experience

Best practices were also shared by top executives from UBS who hosted each program

Results of the Initiative

The Client Leadership Experience consisting of 17 regional workshops each focusing on a specific client segment such as family offices hedge funds and financial institutions or on a specific region such as North America brought together nearly 500 senior client-facing participants Close to 400 cross-divisional client service opportunities were shared ultimately bringing in more than USD 300 million in new revenues and almost USD 1 billion in net new assets to UBS

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Branch Manager Development at Bancomer

BBVA Bancomer the second largest bank in Spain holds a dominant position in Spanish-speaking Latin American countries In Mexico Bancomer set aggressive targets for increasing client satisfaction and driving gains in revenues and profitability for its retail bank

To achieve these targets Bancomerrsquos leadership team wanted to fundamentally change the role of the branch manager in the branch selling process Previously branch managers would follow up on promising leads in order to close deals themselves In the new strategy branch managers would focus on results-oriented coaching in order to drive up the sales performance of their teams

As part of executing the bankrsquos new strategy BBVA Bancomer engaged with BTS to develop and deliver the ldquoLeadership to Create Valuerdquo Based on BTSrsquos Driving Business Results platform the customized program focused on two sets of critical developmental needs for branch managers

Day 1 LEADbull Use a systematic approach to identify performance gaps and strategically manage

sales teams in order to maximize productivitybull Apply coaching best practices that allow teams to be more productive and

improve the customer experience in every interactionbull Create a follow-up plan to maximize the effectiveness of the coaching provided to

each member of the team

Day 2 DEVELOPbull Understand onersquos own communication style in order to identify barriers and establish

strong relationships with teamsbull Use a standard coaching model and apply the right kind of coaching (ie either more

guided or more directed) depending on team member needsbull Develop a relevant and focused coaching process through the implementation of

high-impact questions

The program was rolled out in stages over the course of three years In total 1800 branch managers attended the program

Results of the Initiative

In surveys conducted after the program feedback from participants was very positive One participant commented ldquoThis is by far the best training program Irsquove been through it is very aligned to the bank needsrdquo

Even more important were the business results and sales performance realized by Bancomer On average performance-based bonuses were 40 percent for producers whose managers participated in the program as compared to those whose managers did not Bancomerrsquos leadership team attributes this performance improvement to ldquoLeadership to Create Valuerdquo

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

Branch Manager Development at Bancomer

BBVA Bancomer the second largest bank in Spain holds a dominant position in Spanish-speaking Latin American countries In Mexico Bancomer set aggressive targets for increasing client satisfaction and driving gains in revenues and profitability for its retail bank

To achieve these targets Bancomerrsquos leadership team wanted to fundamentally change the role of the branch manager in the branch selling process Previously branch managers would follow up on promising leads in order to close deals themselves In the new strategy branch managers would focus on results-oriented coaching in order to drive up the sales performance of their teams

As part of executing the bankrsquos new strategy BBVA Bancomer engaged with BTS to develop and deliver the ldquoLeadership to Create Valuerdquo Based on BTSrsquos Driving Business Results platform the customized program focused on two sets of critical developmental needs for branch managers

Day 1 LEADbull Use a systematic approach to identify performance gaps and strategically manage

sales teams in order to maximize productivitybull Apply coaching best practices that allow teams to be more productive and

improve the customer experience in every interactionbull Create a follow-up plan to maximize the effectiveness of the coaching provided to

each member of the team

Day 2 DEVELOPbull Understand onersquos own communication style in order to identify barriers and establish

strong relationships with teamsbull Use a standard coaching model and apply the right kind of coaching (ie either more

guided or more directed) depending on team member needsbull Develop a relevant and focused coaching process through the implementation of

high-impact questions

The program was rolled out in stages over the course of three years In total 1800 branch managers attended the program

Results of the Initiative

In surveys conducted after the program feedback from participants was very positive One participant commented ldquoThis is by far the best training program Irsquove been through it is very aligned to the bank needsrdquo

Even more important were the business results and sales performance realized by Bancomer On average performance-based bonuses were 40 percent for producers whose managers participated in the program as compared to those whose managers did not Bancomerrsquos leadership team attributes this performance improvement to ldquoLeadership to Create Valuerdquo

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

The challenges in retail banking in the United States have never been greater so too are the opportunities Customer loyalty and churn have a significant impact ndash positive as well as negative ndash on a bankrsquos business results

The good news is that there is a clear path to improving loyalty focus branch activities on delighting the customer and creating the greatest customer experience possible Even more good news is that you already have the resources needed to achieve client-centricity your client-facing people in the branch

However achieving the behavior change in your people that will result in a differentiated experience for your customer is no small task In our experience a strategic initiative of this size requires three things 1) alignment to the strategy across the bank 2) a mindset shift that gets people to truly ldquobuy inrdquo to the changes and 3) a new set of capabilities for your client-facing people in the branch

Customers will notice the difference when your branch representatives engage with them in a new way Branch producers who can ldquonavigaterdquo the customer through the buying decision process in a way that reflects customer aspirations will earn the trust of the customer Branch managers can support the new behaviors with proper coaching that focuses on the unique needs of producers to achieve greater performance

For Your Customers Your People and Your Bank

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

The challenges in retail banking in the United States have never been greater so too are the opportunities Customer loyalty and churn have a significant impact ndash positive as well as negative ndash on a bankrsquos business results

The good news is that there is a clear path to improving loyalty focus branch activities on delighting the customer and creating the greatest customer experience possible Even more good news is that you already have the resources needed to achieve client-centricity your client-facing people in the branch

However achieving the behavior change in your people that will result in a differentiated experience for your customer is no small task In our experience a strategic initiative of this size requires three things 1) alignment to the strategy across the bank 2) a mindset shift that gets people to truly ldquobuy inrdquo to the changes and 3) a new set of capabilities for your client-facing people in the branch

Customers will notice the difference when your branch representatives engage with them in a new way Branch producers who can ldquonavigaterdquo the customer through the buying decision process in a way that reflects customer aspirations will earn the trust of the customer Branch managers can support the new behaviors with proper coaching that focuses on the unique needs of producers to achieve greater performance

For Your Customers Your People and Your Bank

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

BTS is an execution consulting company and we excel at helping your sales force build the alignment mindset and capabilities needed to sell in a way that reflects what your customers want today We have developed standard learning platforms that accelerate the ability of salespeople to become navigators for their customers and we build highly custom learning platforms for salespeople and sales managers as well All of our platforms leverage business simulations and other forms of experiential learning to drive knowledge acquisition and behavior change that lead directly to improved sales results

Learn more at wwwbtscomsales-force-transformation Or contact us online at wwwbtscomcontactaspx or by phone

North America +1 203 391 5224

Europe Middle East amp Africa +31 (0) 20 615 7667

Latin America +52 55 5281 6972

Asia Pacific +65 6221 2870

Australia +61 2 8243 0900

Japan +65 6221 2870

Need Help Planning Your Journey

Closing the Value Gap What if it turned out that salespeople were routinely leaving money on the table Despite all the seemingly legitimate reasons for why selling is harder today what if it turned out that customers are actually willing to buy more and at higher prices

Salesperson as Navigator The world of sales is changing fast The notion of becoming a ldquotrusted advisorrdquo to customers may be outdated and too much of sales training is locked in a legacy worldview Learning to challenge or provoke customers may be part of the answer but itrsquos not the whole picture

Learning from Srsquomores Lessons for the Future of Sales from FMCG In thinking about a different future there is a lot to learn from the fast-moving consumer goods (FMCG) industry which has deployed sales innovation faster and more successfully over the last few years than any other industry

Turbulent Skies Why Customers are Taking Longer to Make Buying Decisions and What to do About It The pace of change has become so bumpy that customers can no longer rely on previous experiences to anticipate potential outcomes In response they are staying put- decisions donrsquot get made innovation stalls and risk avoidance becomes the chief priority So if your customers are tightly strapped into their seat belts anticipating the rough air ahead what can you do about it

Additional Resources

Closing theValue GapBy Lou Schachter and Rick Cheatham

wwwbtscom

copy Copyright BTS BTS_WP_CVG_006

Salesperson as Navigator bull BTS White Paper

Salesperson as NavigatorBy Lou Schachter and Rick Cheatham

wwwbtscom

copy Copyright BTS BTS_WP_SAN_002

Learning from Srsquomores bull BTS White Paper

Learningfrom Srsquomores

Lessons for the Future of Sales from Fast Moving Consumer Goods Companies

By Lou Schachter and Rick Cheathamwwwbtscom copy Copyright BTS BTS_WP_LFS_002

Turbulent Skies bull BTS White PaperTurbulent Skies bull BTS White Paper

Turbulent Skies

wwwbtscom copy Copyright BTS BTS_WP_TS_001C

Why Customers are Taking Longer to Make

Buying Decisionshellipand What to Do About It

By Lou Schachter and Rick Cheatham

Accelerating Performance in Retail Banking bull BTS White Paper

copy Copyright BTS

BTS is an execution consulting company and we excel at helping your sales force build the alignment mindset and capabilities needed to sell in a way that reflects what your customers want today We have developed standard learning platforms that accelerate the ability of salespeople to become navigators for their customers and we build highly custom learning platforms for salespeople and sales managers as well All of our platforms leverage business simulations and other forms of experiential learning to drive knowledge acquisition and behavior change that lead directly to improved sales results

Learn more at wwwbtscomsales-force-transformation Or contact us online at wwwbtscomcontactaspx or by phone

North America +1 203 391 5224

Europe Middle East amp Africa +31 (0) 20 615 7667

Latin America +52 55 5281 6972

Asia Pacific +65 6221 2870

Australia +61 2 8243 0900

Japan +65 6221 2870

Need Help Planning Your Journey

Closing the Value Gap What if it turned out that salespeople were routinely leaving money on the table Despite all the seemingly legitimate reasons for why selling is harder today what if it turned out that customers are actually willing to buy more and at higher prices

Salesperson as Navigator The world of sales is changing fast The notion of becoming a ldquotrusted advisorrdquo to customers may be outdated and too much of sales training is locked in a legacy worldview Learning to challenge or provoke customers may be part of the answer but itrsquos not the whole picture

Learning from Srsquomores Lessons for the Future of Sales from FMCG In thinking about a different future there is a lot to learn from the fast-moving consumer goods (FMCG) industry which has deployed sales innovation faster and more successfully over the last few years than any other industry

Turbulent Skies Why Customers are Taking Longer to Make Buying Decisions and What to do About It The pace of change has become so bumpy that customers can no longer rely on previous experiences to anticipate potential outcomes In response they are staying put- decisions donrsquot get made innovation stalls and risk avoidance becomes the chief priority So if your customers are tightly strapped into their seat belts anticipating the rough air ahead what can you do about it

Additional Resources

Closing theValue GapBy Lou Schachter and Rick Cheatham

wwwbtscom

copy Copyright BTS BTS_WP_CVG_006

Salesperson as Navigator bull BTS White Paper

Salesperson as NavigatorBy Lou Schachter and Rick Cheatham

wwwbtscom

copy Copyright BTS BTS_WP_SAN_002

Learning from Srsquomores bull BTS White Paper

Learningfrom Srsquomores

Lessons for the Future of Sales from Fast Moving Consumer Goods Companies

By Lou Schachter and Rick Cheathamwwwbtscom copy Copyright BTS BTS_WP_LFS_002

Turbulent Skies bull BTS White PaperTurbulent Skies bull BTS White Paper

Turbulent Skies

wwwbtscom copy Copyright BTS BTS_WP_TS_001C

Why Customers are Taking Longer to Make

Buying Decisionshellipand What to Do About It

By Lou Schachter and Rick Cheatham

copy Copyright BTS By Michael Collins

Accelerating Performance in Retail BankingImproving Customer Loyalty Through Your People