FEATURE
A new era:
the retail
banking sales
professional
As the world of banking changes and pressure on sales forces increases,
it is becoming increasingly necessary for banks to professionalise their sales
forces to sustain growth and customer value. Dr Derek Shirley unpacks the
package for us.
THE DEMAND
There is always a range of economic factors driving a range of
sales targets. PwC’s annual analysis of the major banks’ financials
highlights the importance of deposits in 2012 to 2013. The report
predicts that retail deposits will be cheaper than wholesale deposits
as a source of funding for banks. Operationally, this will translate
into aggressive sales targets.
Net interest margins on unsecured lending have been good over
the past year. There is a market swing towards these products
in the retail banking space. This will, no doubt, mean aggressive
sales targets.
Then there is the annual quest for the bottom line growth that
meets shareholders’ expectations. Those requirements cannot be
met through cost reductions alone. A better top line is imperative,
conceivably generated by fewer, but more productive staff, which
will mean higher sales targets. All in all, the pressure is on for sales
more than it has ever been before. The world in which these sales
have to be made is changing rapidly.
24
SA BANKER
Edition 2
MORE WITH LESS
A number of trends are continuing to make the banking sales
environment more challenging than it has ever been. Bank brand
differentiation and loyalty still does not provide access to customers
when they purchase financial products. As reported in Time
Magazine, brand and product differentiation in banks generally
remains elusive.
A survey conducted by marketing research firm, Brand Keys,
found that consumers make no differentiation at all between bank
brands. ‘They’re still among a group of brands where there is zero
differentiation,’ says Brand Keys’ founder, Robert Passikoff. In most
banking sales situations consumers essentially believe they are
buying commodities on a transactional basis, rather than expecting
a value-adding sales process. No bank brand yet provides any degree
of certainty that it will have access to its existing customers when
next they buy a financial product or solution.
Competition is more focused and more vigorous when purchasers
do decide to buy. Competition for wallet share is intensive.
Continued »