Beat Competitive Price with Powerful Advice
Beat Competitive Price with Powerful Advice.
According to many finance industry professionals, competition is hotter than ever thanks to the current low interest rate environment.
Many bankers and mortgage providers are blaming low interest rates for the loss of clients and their inability to win new business.
I agree that some competitors are offering “ridiculous interest rates” …. but is that the REAL reason for YOUR losses?!?
I suggest not.
Price competition will ALWAYS exist …. regardless of whether interest rates are low or high. In fact, I have never worked for a financial institution where we were the cheapest in the market. Yet we achieved record growth year after year.
Price ONLY becomes the primary consideration when the customer/prospect perceives they are not receiving any other value.
And it is YOUR responsibility to effectively demonstrate tremendous value. Start by overcoming any limiting beliefs that you are simply offering a homogenous product – like a loan or a bank account.
Be a “Financial Adviser” …. Not Simply a Service Provider.
Price should never be the primary variable that distinguishes you from your competition …. but it will be unless you can create greater VALUE as follows:
1. BELIEVE you offer Tremendous Value
I know many bankers who believe that there is not much differentiation between loan and deposit products beyond price.
Are you proactively positioning yourself as a VALUABLE financial adviser to your customers and prospects? No matter what your position is at your financial institution, you will always have an opportunity to offer guidance and advice that can help a customer achieve their financial goals and/or overcome a financial challenge.
Stop thinking that you are only there to respond to a customer’s request?!?
BELIEVE that you and your Bank can make a huge impact on the life of your customers through your financial knowledge, genuine commitment to helping them and your broad range of beneficial solutions.
BELIEVE that you are far more valuable than your competitors because you can do so much more than simply offer a “better price” on a loan or deposit.
2. PRESENT your Tremendous Value
Now that you confidently BELIEVE in your value proposition, it is important that you can comprehensively present this to your customers and prospects.
And you cannot do this by simply providing Term Sheets and Product Brochures …. or only talking about yourself.
You see by only offering generic documents, you are forcing the client to only review what’s customized for them … and that’s usually price.
Show a genuine interest in helping your clients by asking more questions about their goals and challenges. FOCUS ON THEIR NEEDS, NOT YOUR PRODUCTS. The more you discover, the more valuable advice you can give.
Think more broadly about all the different needs your customer may have, and you will be able to more easily provide a customized outline (proposal) of your broader solutions that demonstrates tremendous value specifically for your customer.
Now THAT sounds like a better way to present your tremendous value than a basic Term Sheet, doesn’t it?!?
3. DELIVER your Tremendous Value
Prove your worth by delivering exceptional results for your customer. It’s important that you now deliver the value you promised and the value they are paying for.
Don’t just close the deal or open the account ….. follow up the broader needs you discovered and now proactively take the next steps to help your customer overcome any other financial challenges and/or achieve their broader financial goals.
- Arrange an appointment with another bank specialist.
- Offer additional funding, investment accounts or a financial plan.
- Invite your customer to an event or financial seminar.
- Provide assistance to their family, staff, friends or any of their contacts.
By delivering tremendous value, not only will you justify your price, but you will soon gain an advocate who will recommend your tremendous value to others.
So I strongly encourage you to focus on the greater VALUE you can provide, than the ridiculous pricing your competition is offering.
In the Absence of Value … there is Only Price
YOU know you can provide tremendous value to your customers, so why discount that?!? Warren Buffett said it best:
Do you think Warren Buffett discounted his price? Of course not …. because he consistently created TREMENDOUS VALUE for his clients. As do YOU!
Now for those of you who may still need a little help with handling price competition, here are three questions who should ask every time that evil monster raises its head:
1. How deep and wide is my relationship with this customer / prospect?
No matter how long you have known a customer or prospect …. and no matter how much they seem to like you …. unless they are constantly seeking your financial advice/support and unless you are consistently trying to help them with ALL their financial needs …. they will be very susceptible to price baiting.
I guarantee if you don’t have a strategy for proactively engaging all your customers, your competitors WILL have a strategy to take them away from you. So be proactive now and don’t wait until it’s too late.
2. Do I truly understand my customer or prospect’s buying criteria?
What criteria will your customer or prospect consider when choosing a financial services provider? Have you asked?
When it comes to money and wealth, a customer or prospect must choose wisely. And cheapest is certainly not best. So what criteria is truly important to them? You will be surprised by how few customers only choose (or prioritize) price.
By knowing, you can focus on their key criteria and present/deliver solutions they will truly value.
3. Am I willing to discount or is it better to walk away?
Sometimes it comes down to only price. Unfortunately the customer or prospect is ignoring (or not recognizing) the greater value you can bring.
You now need to determine if you are willing to discount your service … and potentially compromise your value? Are the customer’s expectations today, and in the future, reasonable for the price they are seeking? Are you setting an unsustainable precedent?
Consider a conditional agreement with the customer or simply walk away. Don’t be desperate for a deal (customer) that is likely to leave you for a better price some other day. Don’t start second guessing your value.
I assure you that there are plenty of customers and prospects who will appreciate (and pay for) your tremendous value.
The”Evil Price Beast” is here to stay.
But please don’t fight price with price …. because both your Bank (through compressed profit margins) and your customer (through limited service) will LOSE. It is a Lose-Lose situation for everyone.
Create a WIN- WIN situation by pricing your tremendous value at a more profitable margin allowing you to now give your customer the attention and advice they need to achieve tremendous financial success.
Powerful financial advice and service will always knockout a “price beast”. You just need to believe, present and deliver tremendous value.
Check out my short 4 minute video below for more personal insights on the importance of focusing on value rather than price.
Article written by Joe Micallef – Sales Strategist & Coach – Grow UP Sales. For more advice on how to believe, present and deliver your tremendous value please email firstname.lastname@example.org or visit the webpage www.growupsales.com
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