Wholesalers face aggressive activity objectives. Today’s standard is 25 in-person contacts per week. When covering larger geographies this proves challenging. As a result of insufficient scheduling, some wholesalers stop at an advisor’s office after calling to say, “Hey, I’m just down the street…” or – even worse – totally unannounced. “Do you have a few minutes?” turns into 30- 60 minutes. The wholesaler attempts to tell his or her story with little regard for the schedule of the advisor.

Recently a coaching client called me about a wholesaler dropping in unannounced and sucking up an hour of his Associate Advisor’s time. This wholesaler has a quality product, but my client called the wholesaler and advised him not to call or come back. You might ask if this is a little drastic; maybe so.  However, my client was waiting on a report that was to be prepared by the associate – and the report was late. Not only did my client fire the wholesaler, but he had to deal with a delayed meeting because the associate tried to be courteous to the wholesaler.

Are Drive-By’s ever appropriate? Possibly when dropping off a promotional item ONLY or to introduce oneself and schedule a future appointment. However, if a wholesaler expects the advisor to have empty time in his or her calendar because the wholesaler has empty time, the situation is totally unprofessional.

FOR ADVISORS: Be jealous with your time. Give wholesalers your “ground rules” for meeting. And be on time when you have a meeting scheduled with the wholesalers. Their time is as valuable as yours.

FOR WHOLESALERS: Schedule in advance. Use a scheduler. Set your next meeting at the conclusion of this meeting. And always be a pro.

Good Selling!

This is the second post in a series of ten discussing major faux pas’ made by wholesalers, ideas on how to correct them, and suggestions for advisors on how to deal with wholesalers who make these mistakes.

Mistake #2: Telling, Not Selling

Presenting is an essential skill for wholesalers. You demonstrate your product in such a way so the advisor knows what it does, how it works, where it fits, and how to sell it. And to say nothing about group presentations! Master wholesalers dominate when it comes to individual and group presentations.

However, hear the words of Jaime Calva, a selling sage with 60 years under his still productive belt:

“Telling is not selling.”

Dialogue happens when two or more people converse. Like the Tango, it takes two to dialogue, and in order for a sale to be made, both parties must communicate. While this involves feedback, it means more than the typical sales feedback loops. Selling involves interviewing your prospect. Selling means knowing your prospect, and in order to know someone you must ask questions. Asking questions does NOT mean interrogation with “Fact-Finding” questions, but professional rapport building with “Foundation Building” Questions, such as:

• “Tell me about your family.”
• “How did you get into the business?”
• “If you were to bring me on as new vendor relationship, what has to happen in the next twelve months in order for you to consider your decision a success?”“
• In looking at your practice / business today, what do you consider your biggest challenges?”
• “What is the biggest factor in your success?

SOLUTIONS: Develop a standard interview structure, and be flexible. Build a list of 20 Foundational Questions as a goal for each advisor relationship. Ask these questions over a couple of meetings to find the advisors passions, drivers, and motivations. Don’t forget to build effective feedback loops into your presentations, as well.

FOR ADVISORS: You should do the same with your clients. Ask better questions. And, beware the wholesaler who leads with, “What part of your sales is made up of [PRODUCT]?” Chances are he/she is looking out for himself/herself alone. For your part, get to know your wholesalers better with every meeting. Learn about their internal drivers, and what they need and want in a professional relationship. Expect wholesalers to truly be your partners, and be a partner with them as well.

Good selling!

Today’s kids just aren’t motivated. We have spoiled and coddled them. They don’t have drive, and can’t deal with competition.

Yeah, right.

Yesterday Missy Franklin put an exclamation point on her first world swimming championships in Shanghai.  She won five medals in all — two golds and a silver in relays as well as a gold medal in the 200 back, and a bronze in the 50-meter backstroke. Her performance put Michael Phelps meet – which was outstanding – into the second paragraph of news articles. Phelps was quoted as saying, “She does it all… she’ll remember this for a long time.”

Did I mention Missy Franklin is only 16?

Missy teaches us some wonderful lessons. You are never too young (or too old) to realize big dreams, but those dreams come with a price! During the broadcast, the commentators from NBC mused about the influence of Franklin’s coach, Todd Schmitz. Schmitz taught his young swimmer that when you practice, it is similar to making deposits in the bank. You keep making deposits whenever you practice, and you equate the amount of the deposit to the quality of the practice. When you compete, you get to withdraw everything you have deposited!

Apply this to your business. How can you make “deposits” into your business? What can you “practice” that will result in significant withdrawals in the future? Consider practicing:

• Exceptional Service
• Keeping Promises
• Presentation & Delivery
• Staff Empowerment & Development
• A Never-Ending Commitment to Improvement & Excellence

Congratulations, Missy Franklin. Thank you for your inspiration, and best wishes for continued success, and a long and happy life.

And to you…

Good Selling!

Today I received an email from a financial advisor who is a coaching client. A portion of the email read as follows:

“Mike; I am working on a schedule for my assistant for blocking time and activities.  What are your thoughts on the subject…?  Thanks.”

This was my reply:

For a start, book appointments – as many as possible – on Tuesday through Thursday. Mondays would be for staff review, planning, and case preparation. Fridays would be for finishing the week, planning the coming week, and cleanup of messes.

Does this mean you wouldn’t see a client on Monday or Friday, or for breakfast, lunch, or dinner, or possibly an evening or Saturday appointment? OF COURSE NOT! However, MOST clients can be guided to one of these time slots. Furthermore, I suggest that unless you plan to work Saturday, don’t schedule an appointment after 11:00 AM on Friday. This allows you to finish early – and let your staff catch up – from the busy and productive week.
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Please feel free to send me your thoughts on time blocking and scheduling appointments.

Good selling!

“National Sales Meeting Season” is upon us! Do you get the maximum benefit from national and regional sales meetings? Follow these five simple steps to get the most value from the time you invest attending sales conferences.

1. Set Objectives. What do you need to grow your business this year? How can you deliver even better client service? What efficiencies can you put in place to allow you and your team to work smarter? Asking these questions and setting objectives for sales meetings provides the framework for making these meetings profitable.
2. Review The Agenda. What sessions promise the most for you? What speakers do you want to make certain to hear? Research the speakers to find out about their experience and areas of expertise. Look at the list of sponsors to identify product partners and vendors with whom you would like to visit. Make the best use of the exhibit hall for new learning and service opportunities.
3. Network. Meet people that can help you achieve your business objectives. Look for new attendees, and welcome them. Who knows; they might be able to help you as well! Connect with home office leadership and support staff to build relationships, create liaisons, and advocates for opportunity development and problem solving.
4. Plan Individual Meetings. Schedule breakfasts, lunches, dinners, and coffees in advance with individuals that can assist you as you work toward building your business.
5. Have Fun. Sales meetings often include entertainment, excursion, and adventure opportunities. Take advantage of these, for you can mix business with pleasure!

Good selling!

The banking industry has caught its share of flack for the industry’s part in what has come to be known as “The Great Recession.” Not without cause, mind you, but virtually nobody saw what was coming. With the exception of a handful of people such as Steve Eisman, Michael Burry, and Greg Lippmann (read Michael Lewis’ book, The Big Short: Inside the Doomsday Machine. New York: W.W. Norton & Co.) bankers not only did not see but were hurt by the financial collapse of 2008 as much as any sector. In fact, in 2004 the FDIC said, “Within the banking industry, we conclude that each of the three main sectors—community banks, regional and other midsize banks, and the largest banking organizations—has favorable prospects for the years immediately ahead, even though the number of institutions is likely to decline further. What could materially diminish these relatively favorable prospects?”*

The question is simple; where do bankers go from here? With a return to conventional lending standards, and the inability of the majority of consumers failure to qualify for those standards, bankers face a double-edged sword. With the flight to security of depositors and the inability to lend those funds to qualified buyers, banks find themselves in a unique paradigm.

The immediate challenge is to stay active in the communities in which these banks and bankers work and live. Good banking business is still out there, bu the days of sitting in the bank waiting for business to come in the door are over. The flight to quality in loan underwriting notwithstanding, bankers must compete and win the battle for quality relationships like never before. Forget marketing; does your bank have a CRO (Chief Relationship Officer) tasked with developing a strategic relationship development program for its officers and directors? It is no enough to join organizations and be visible.  Banks must aggressively and strategically develop a plan to own the key relationships in their marketplace.

*The Future of Banking In America; George Hanc; Former Associate Director, Division of Insurance and Research, Federal Deposit Insurance Corporation.

The last half of 2008 provided the banking industry with a host of unprecedented problems.  Many banks offer investments and financial planning services to their customers through internal broker-dealers or third party providers.  Regardless of you distribution model, your investment department faces challenges as well.  Shrinking account values, inappropriate investments, and delayed or damaged retirement plans damage customer relations.  Emotions run high when customers feel (rightly or wrongly) they have been poorly advised or misled.  Deteriorating client relationships in your investment department carry over to customers’ banking decisions.  Follow these five simple steps to make certain your investment department provides the highest level of professional service to you customers.

Manage your Investment Advisors – Too often banks neglect to provide the same degree of oversight to their investment departments as they do to their banking operations.  Manage your investment department the same as you would any other part of the bank.  This requires a basic understanding of the culture, benchmarks, and processes of the investment industry, as well as management processes designed to grow business and insure exceptional service. If you have a program manager, your increased interest and knowledge will help them in their role.  If you have a third-part program, assign a member of the bank’s management team to provide assistance and oversight of the operation.

Departmental Communication – Include your investment advisors in regular bank meetings and events whenever appropriate.  When your investment advisors understand the bank’s focus, they are better equipped to cross-refer business.  In addition, they experience the bank’s culture and expectations on a first hand basis.  Insist upon a basic level of reporting that allows you to exercise proper due diligence.

Investment and Service Offerings – Know what your investment advisors sell to your customers.  Be cautious about allowing your investment department to position its services as “investment management.”  In most cases, bank advisors sell packaged investment products utilizing portfolio managers, such as mutual funds, variable annuities, and separately managed accounts.  Most bank advisors do not pick stocks, for the most part, or exercise discretionary authority to trade securities for clients.  Product and service offerings should not be so broad as to hinder the advisors’ ability to have a complete understanding of what they offer to clients.

Examine Service Standards – Know exactly what a client can expect from an advisor in the way of service.  Most advisors establish and follow a service schedule that answers questions such as:

• How often will the client’s account be reviewed?
• How does the advisor segment clients for service purposes?
• What additional services are offered, and how does the client qualify for additional services?
• How is the service program administered, and who manages the service program?

Investment Policy Statements – An Investment policy statement (IPS) is a simple document, usually based upon a template, which spells out an investor’s investment goals, risk tolerance, and expected results. It also lays out a plan for how the investor will monitor his or her portfolio, as well as the advisor’s roles and responsibilities. An IPS allows the client to be clear about expectations, as well as providing the advisor with rules of engagement, in addition to acting as a compliance tool.

Consider using these strategies to enhance to value of and quality of service rendered by your investment department.  A minimal amount of oversight provides customers with the best possible level of service and protects the bank’s valuable customer relationships.  An investment department provides addition fee income and a more complete financial product offering, which improves bank customer retention.  Make certain this star pupil continues to make its bank parent shine.