“Key account management requires mixing the hard facts with the soft stuff – crunching numbers AND taking the relationship’s pulse. Adjust the formula based on what key accounts want to stay satisfied”-Milind Katti, COO & Co-Founder, DemandFarm.
Dear Readers, for the past two weeks, I have been emphasizing on what is described as “key customers”. This does not in any way mean that customers who do not bring big business to the bank are not key. It is also a reminder about the “Pareto Principle” which always mean that only about 20% of customers give us 80% of our income. However, every customer is important and must be treated FAIRLY.
A business cannot exist without its customers, and this is why banks are really focusing on how to win new business and more importantly retaining existing customers.
A quote from Bloomberg Businessweek says: ”Delivering great customer experience has become a top strategic objective of many corporate organizations”
Why customer care is important to service providers
Before I finalize this series on managing key customers, lets remind ourselves of the importance of customer care and why financial service providers are all out for customer experience excellence:
- Without customers, there will be no business.
- Customers pay salaries of employees.
- As a result of competition, customers have a choice.
- Customers are financially sophisticated and knowledgeable and demand to know what pertains in other financial institutions
- The longer the association between an organization and a customer, the more profitable the relationship for the organization.
- Satisfied customers who are advocates, recommend their Bank to others.
- All services/products are easily imitated.
- Products’ advantages can be very short term.
- It is more expensive to win a new customer than to retain an existing customer.
- Good customer care/service enhances corporate image.
- It also leads to increased business performance.
- Research shows that good customer service tops the list of strategies for gaining competitive advantage and to charge premium prices.
Based on the above facts, if 20% of your customers are giving you 80% of your revenue, strategic value and growth potential, why not continue to use unique skills to make them stay with your bank? Managing key bank accounts is crucial for ensuring optimal customer satisfaction, retention, and growth. Based on various cases and scenarios explained in my previous series, here are some steps and best practices for managing key bank accounts effectively:
- Understand your key accounts
- Identification: Identify key accounts based on revenue contribution, strategic value, and growth potential.
- Segmentation: Segment these accounts to tailor services and strategies to meet their specific needs.
- Data analysis: Use data analytics to gain insights into the behaviors, preferences, and needs of key accounts.
- Develop strong relationships
Become your key account’s trusted Advisor, and not like an ordinary vendor. It is about relationship-building with them. Get to know their structures, pain points, and priorities at multiple levels.
- Personalized communication: Maintain regular, personalized communication with key account holders to build trust and rapport.
- Customer feedback: Solicit and act on feedback to show that you value their opinions and are committed to improving their experience.
- Relationship management: Assign dedicated relationship managers to provide a single point of contact and ensure continuity in service.
- Look for opportunity to offer tailored solutions
The Relationship Managers of key accounts are very instrumental in such events. Although the bank’s products are not cast in stone, an RM can be proactive by studying the competition and recommending customized solutions to the key account holders to personalize their dealings with the bank.
The best way to help key accounts expand is through upsells or new offerings. Closer bonds give insights into the challenges they face. Address those, and you’ll organically grow deal size over time. To make the most of the potential to cross-sell existing Key Accounts, you need a strong strategy and strategic account plans to bring best practices to your Key Account Managers and salespeople.
An additional focus should be about providing customers with something that will benefit them. Please avoid cross-selling irrelevant products to them.
Use the relationships you have already established with your clients to ask questions, find out about the issues they are encountering, and look for ways to resolve those by making improvements to your existing products or developing new ones.
Can you provide Value-Added Services? Provide additional services such as financial advice, investment planning, and risk management tailored to their business or personal financial goals.
- Monitor and evaluate performance
This is the moment of truth in the banker-customer relationship as you engage in the following performance reviews:
- Key Performance Indicators (KPIs): Establish KPIs to monitor the performance and satisfaction of key accounts.
- Regular reviews: Conduct regular reviews of account performance and client satisfaction to identify areas for improvement and opportunities for growth.
- Risk management: Continuously assess and manage risks associated with key accounts to protect both the bank and the client.
- Enhance customer experience
Customers have become very entitled and know that technology is a must-have and yet only an enabler. Many customers continue to appreciate the human touch in addition to the technology.
- Technology integration: Utilize advanced technology such as CRM systems, data analytics, and mobile banking apps to enhance the customer experience.
- 24/7 support: Provide round-the-clock support to address any issues or concerns promptly.
- Proactive problem solving: Anticipate potential problems and proactively address them before they impact the client.
- Training and development
The soft skills must never be underrated in service delivery due to the uniqueness of every customer.
- Staff training: Ensure that all staff interacting with key accounts are well-trained in customer service, product knowledge, and relationship management.
- Continuous Improvement: Foster a culture of continuous improvement through regular training, workshops, and seminars.
- Strategic planning
Here, the RM must collaborate with other specialists to assist in the customer’s strategy and goals for growth.
- Long-term goals: Develop long-term strategic plans for each key account, focusing on growth and sustainability.
- Collaborative planning: Work collaboratively with key accounts to align your strategies with their long-term objectives.
- Reporting and transparency
As a “Friend and business advisor” of the customer who works in the best interest of the bank and the key account holder, RMs should seek help if any, in executing the following:
- Regular reporting: Provide regular, transparent reports to key accounts on their financial status, performance, and any changes in services or policies.
- Open communication: Maintain open lines of communication to ensure that key account holders are always informed and engaged.
- Ethical practices
This applies to all. A bankers motto should always be “Honesty and Integrity” at all times.
- Compliance: Ensure that all interactions and transactions with key accounts comply with relevant laws, regulations, and ethical standards.
- Integrity: Uphold the highest standards of integrity and professionalism in all dealings with key account holders.
- Never under rate your customer at any level” You will be surprised.
Implementing these strategies will help in managing key bank accounts effectively, leading to higher customer satisfaction, retention, and growth.
Daily routine
The daily routine of RMs who manage VIP accounts should include the following:
- Check in regularly with important customers and decision-makers at their designated key accounts to address needs and concerns.
- Delve quickly on any outstanding issues head-on to keep clients happy. Is the internet platform working, have any transfers been effected? Any Treasury or cash management issues? Any correspondence issues? All indemnities on virtual banking in place?
- Is the account performing as expected? Any gaps in sales due to slowdown in deposits from the trend analysis. Know the customer’s challenges, methods of solving problems, or finding growth opportunities.
- Coordinate with sales, service and operations teams internally to deliver on promises made to their accounts.
- Brainstorm innovative solutions to help clients achieve business goals. Their success fuels key account success.
Closing notes
Dear Relationship Managers, continue to build rock-solid, trust-based relationships so clients never want to leave for competitors. Expanding on those relationships by continuously implementing value-driving solutions. The closer the bond, the more business you get!
For more insights on this topic, please book a copy of my new book, “THE MODERN BRANCH MANAGER’S COMPANION” which involves the adoption of a multi-disciplinary approach in the practice of today’s branch management. It also shares invaluable insights on the mindset needed to navigate and make a difference in the changing dynamics of the banking industry. Call 0244333051 for your copy.
ABOUT THE AUTHOR
Alberta Quarcoopome is a Fellow of the Institute of Bankers, and CEO of ALKAN Business Consult Ltd. She is the Author of two books: “The 21st Century Bank Teller: A Strategic Partner” and “My Front Desk Experience: A Young Banker’s Story”. She uses her experience and practical case studies, training young bankers in operational risk management, sales, customer service, banking operations and fraud.
CONTACT
Website www.alkanbiz.com
Email:alberta@alkanbiz.com or [email protected]
