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This Land of Strangers - Robert E Hall

This Land of Strangers

"..the most important book of the decade." — Richard Boyatzis, co-author of best seller Primal Leadership

Relationships, in all their varied forms, have been the lifetime study of Robert Hall. He brings a rare combination of experience as a researcher, consultant, writer, teacher and CEO in dealing with the real-world relationship challenges of modern organizations. When coupled with a decade of hands-on experience in the gritty world of inner-city homeless families it translates into a tapestry of vivid stories, well-researched and oft startling facts, and strategic insights that weave together the yet untold narrative of society's gravest risk and most stellar opportunity.

A Relationship Culture: More Than a Sales Culture

“It is not slickness, polish, uniqueness, or cleverness that makes a brand. It is truth.” – Harry Beckwith

• • •

The pressure for banks to grow retail and small business revenue is a real challenge. We face changing regulations that lower fees, customers who visit our branches less and less and a marketplace hardened against sales tactics that push products now and seek relationships later (maybe). The truth is that many of our sales culture initiatives have strained the relationships with our customers and created passive resistance on the part of our staff.

All of this leads to an important question: What is the difference between a sales culture and a relationship culture? The terms are often used interchangeably but they are different. It is quite possible to get additional sales while depleting the relationship, thus leading to tougher future sales and even customer defection.

The data seems to tell us that while a number of our customers continue to do business with us, we are not building relationships. According to a Novantas survey, four of ten customers are receptive to consolidating their banking business with a single institution, yet a bank typically wins no more than 20% share of wallet from the average consumer, leaving 80% of the potential is with competitors.

Further, 40% of respondents said they don’t feel their bank looks out for their best interests. The sales culture efforts over the past two decades that emphasized selling or pushing product has repelled customer relationships and diminished the brand. In the short-term it often led to sales, but we now face a marketplace that is highly immune to and distrusting of our sales efforts. Too often we have traded on or harvested the relationships rather than build them.

There are certainly exceptions. Many of the smaller banks have put more emphasis on customer service than on pushy sales, sometimes providing better service but missing relationship opportunities. In the larger banks, there are certainly instances of individuals growing relationships while yielding sales but it has not been the norm.

The aim of many sales cultures is to develop sales in every interaction possible. It alienates some customers because it seems so self-serving – putting the needs of the bank over the needs of the customers. The aim of a strong relationship culture is to use every touch to build up the customer relationship, so when needs arise that relationship translates into sales.

This contrast raises an interesting question: What if the priority goal for every touch in every channel was to build a stronger relationship and any customer service or selling was simply a means for doing that? It is a subtle but profound difference. If the goal of every interaction was to conclude the communication with a stronger connection than when it started, how would that change things? Certainly it would be different in-person where the relationship building potential is greater than in a call center or an on-line chat.

In my experience there are three key principles that would drive an organization that truly makes building the relationship its highest priority:

■ Make relationship-building the primary goal: Every customer interaction – in-person, over the phone, or on-line – would begin with a goal of enhancing the personal connection between the customer or prospect and the individual and the enterprise they represent. That is a different goal than providing great service, completing a transaction in an effective way or closing or up-selling the customer. The aim, in small ways and large, would be that after every interaction customers or prospects would feel more known, acknowledged, appreciated, or connected than when they started. The metrics would be growing customer commitment to the organization and its brand, willingness to refer and ultimately share of wallet.

■ Allocate of attention to the relationship: A portion of each interaction would be focused on acknowledging and feeding the relationship. For example devoting a second to recognizing a customer’s tenure or their newness if they just joined you or unique needs or circumstances. Simply noticing is a powerful way to feed the relationship. I have over 6 million miles on one airline and from time to time on a flight an attendant might compliment my tie or remark that I worked non-stop on the flight, and I sensed that as a small gesture of feeding the relationship. Over the phone or in chat, simply saying: you have been with us a long time or we really appreciate customers who give us so much of their business. It is the opposite of feeling invisible during an interaction where the provider does all the right transactional stuff but totally ignores the relational interaction. It doesn’t mean lengthening the interaction, but intentionally being relationally present: eye contact, sincere handshake, thanking them for doing business – even acknowledging taking too much of the customer’s time if appropriate.

■ Purposefully go out of your way for them: Look for at least one opportunity in each interaction to do something beyond the normal, what the customer requests or expects. In person, things like walking them over to meet the manager, walking them to the door or getting them a folder for their papers. Over the phone offer, “Let me look that up for you” or “If you can hold I will call over or search for that answer for you.” Or, “I will be happy to hold if you need to take that call, answer the door or … ” If you are seeking to surprise them by going out of your way – often you’ll find a way. Sacrificial serving builds relationship.

Here’s the good news. Building a relationship culture intent on engaging customers in every interaction is a much easier sale to employees than a product-push sales culture because it is more true to the customer. It simply requires making relationship-building the highest priority. The organizations that master this new priority will build a stronger brand and win the longer-term revenue war.

(Column appeared originally in ABA Bank Marketing magazine – March 2011)

By ROBERT E. HALL

Not to be reproduced without written permission. All rights reserved. © Copyright Robert E. Hall 2011

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