Community Bank Consulting Blog

Good Morning America - "Are Banks Lending Again?"

Friday, March 27, 2009

This morning ABC News did a segment called "Are Banks Lending Again?" on popular morning show Good Morning America (GMA).

Click here to watch this short video segment.

Does the New Market Demand New Client Service Tactics?

The following post is by guest author Kirk Hoffman.  Kirk is a Book Yourself Solid Certified Coach and lives in Maryland where he operates Absolute Arrow Coaching.  Click here to see his biography -or- click here to read his other posts.

 

“The wise man does no wrong in changing his habits with the times” (Dionysius Cato, 3rd or 4th A.D.)

"The wise man is a wise man when his principles remain consistent through turbulent times." (Kirk Hoffman, now)

Our economy has definitely shifted over the last few years. Our boom market went bust. Wall Street was hit by an earthquake. Businesses and banks are scrambling to stay open.

The other day I read that the new market demands new client service tactics. Is that true? I think it is. And isn’t.

Business Foundations

It appears that many businesses have lost their way. Enron, Halliburton and WorldCom are just a few that have weakened the foundations of relationships between businesses and customers. Somehow a massive disconnect has formed between corporations and the people they serve, causing them to act destructively and criminally in the unbridled pursuit of their own self-interest.

The problem here is that they’ve missed or forgotten one small but extremely important step. You must know the reason you get out of bed in the morning and what you stand for in the world. Without that solid foundational element it’s easy to fall into thinking it’s about getting all the money you can, instead of living out the purpose of your life.

Trust and Credibility

How many times have you felt like you were being rushed into a sale, that it had to happen at the insistence of the salesperson in front of you? You tried to communicate concern or lack of readiness but your salesperson put their agenda first. It left you frustrated, unheard and unlikely to return.

Instead, we can build a sales cycle that becomes a process to engage people however they are comfortable and at their pace. It allows time to get to know who we are and how we can really help them, to give them trust-building evidence over time. We can build relationships in which people can decide they want what we have to offer and choose when it is right for them. We can also develop a variety of offers that provide people with different levels of personal and financial commitment as well.

Self-Promotion

I can’t remember the number of times I was approached with an offer and, when I wanted more time or more information, never hearing from the salesperson again. The message here is clear: their prospects are only of interest as long as they are going to buy, and buy now.

Let’s create a way of maintaining our relationships with people without it always being a sales call or pitch. Build a referral network of other professionals, in other industries, that will enrich people’s lives. Recommend good books or seminars in areas of interest. Deliver valuable, usable information in blogs, articles or speeches. Become someone who adds value and generally improves people’s lives without always having to be paid.

Now, this is where I have to say, after all the evidence, that new client service tactics are not needed…because the remedies have been around for ages!

Knowing the way you positively impact your customers’ lives and treating your customers as human beings, both in allowing them to set the pace that is best for them and by consistently reaching out to them helpfully over time, is not a novel idea.

Just a forgotten one.

The new market demands we remember ageless client service tactics.

Thankfully, only those who remember tend to survive during times like these. I’m looking forward to spending more time with people like that.

Ben Bernanke changes history… goes public. What does this mean to you?

On March 15, 2009, Federal Reserve Board of Governors chairman Ben Bernanke changed history by being the first Fed Chairman ever to grant an interview while in office.  Bernanke appeared on the CBS News Magazine 60 Minutes.

60 Minutes leads in with “Aside from the president he’s the most powerful man working to save the economy…” “Ben Bernanke may be the most important Fed chairman in history.  The question is can he help lead America out of this deep recession and when?”

The interview begins with 60 Minutes correspondent Scott Pelley asking “Mr. Chairman, I’m going to start with a question that everyone wants me to ask: when does this end?” To which Bernanke replies “It depends a lot on the financial system. The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis. We've seen some progress in the financial markets, absolutely.  But until we get that stabilized and working normally, we're not gonna see recovery.  But we do have a plan.  We're working on it. And I do think that we will get it stabilized, and we'll see the recession coming to an end probably this year.  We'll see recovery beginning next year.  And it will pick up steam over time."

What does this mean to you?  The fact that Mr. Bernanke granted an interview to 60 minutes is a strong indicator that he recognizes the need for a level of transparency that was not necessary in the past.

I think a clear indicator of the demand for more transparency in business is the tremendous growth recently of social networking sites on the internet such as Facebook, Twitter, and LinkedIn.  As I was writing this post I attempted to log into Twitter to check some facts and got the message “Twitter is over capacity. Too many tweets!  Please wait a moment and try again.”  What a great illustration of the rapid growth of social networking sites.

MarketingCharts.com indicates in a blog post dated March 24, 2009, that “Twitter experienced 1,382% year-over-year growth in February 2009, with the number of total unique visitors increasing from 475,000 in February 2008 to seven million last month, according to Nielsen Online.”  They went on to say “This increase makes Twitter the fastest growing member community site for the month.”

“Zimbio and Facebook , which were the second and third-fastest growing communities, posted triple-digit growth, with the number of visitors to those sites increasing 240% and 228%, respectively” MarketingCharts.com continues.

Click here to access the MarketingCharts.com blog post.

The growth and popularity of these social networking sites is a great example of the internet transitioning from what is now referred to as Web 1.0 to Web 2.0.  Think of Web 1.0 as being like a printed brochure.  Web 1.0, like a printed brochure, only gives information.  It does not engage the reader in a two way conversation.

Web 2.0 is conversational.  Web 2.0 gives readers an opportunity to respond.  A great example of how Web 2.0 is conversational is this blog; you have the opportunity to post comments.  On Twitter, you have the opportunity to engage in conversation by retweeting (sending the post of someone else to your followers), replying, or direct messaging (sending a response privately to the original sender).  On Facebook you have the opportunity to post a comment related to almost any information on the site, again, a two way conversation.

For those of you that are having trouble grasping this Web 1.0, Web 2.0 thing, consider this fair warning, there is now a Web 3.0.  Web 3.0 is built around a more collaborative environment.

So what are the lessons we can learn from Mr. Bernanke?

First, I think his bold move of breaking a 96 year tradition of the Fed chairman not granting interviews is a reminder that a good leader is open to change when change is appropriate.  A recent study indicates that the workforce of 2012 will be made up  of 70 million Gen Y's (born 1977 to 1992) and 38 million Baby Boomers (born 1946 to 1964).  The current recession will most likely cause more Baby Boomers to remain in the workforce longer than projected when this study was conducted, however, the shift in demographics that will occur in the workforce in the next five to ten years is still noteworthy.  Gen Y is the group that discovered social media through outlets like MySpace.  They grew up communicating very openly online about their lives.  Gen Y expects more transparent communications from their leaders.  Gen Y does not respect a leader because of their title, the leader must earn their respect through their actions.

Second, be genuine and open.  If you have not had the opportunity to watch the video of the interview with Mr. Bernanke, it is well worth your time to do so.  You will see a man that is genuinely unhappy with the fact that the Fed had to put money in AIG.  You will also see his explanation of why it was the appropriate thing to do.

As I work with senior managers at community banks, many express concerns about using tools such as a blog, video interviews (Vlog), podcasts, and social networks such as Facebook and Twitter.  I understand the basis of these concerns, banks are highly regulated; all communication must meet compliance requirements.  This concern is legitimate, however it is not a reason to ignore these communication tools.

Here are a few action items:

1. Look at what other banks are doing.
   1. I did a blog post a few weeks ago on how banks are using Twitter.  Twitter is HOT right now.  A day does not go by without Twitter getting a mention in the media.  I outlined some suggested steps related to Twitter in that post.  Check here to access the Twitter post.
   2. Jim Brune did an excellent post about Twitter recently on the NetBanker blog.  I suggest taking the time to read his post and the comments.  Click here to access the post.
   3. Wells Fargo / Wachovia has a blog specific called The Wells Fargo-Wachovia Blog.  On March 18, Matt Wadley did a good post on their co-branding effort.  Click here to access the post.  This is a good example of using a blog to keep prospects and clients informed.
   4. Monarch Community Bank has done a nice job developing a page on Facebook.  They have integrated lots of photos and video.  Great technique.  Click here to visit their Facebook page.
2. Reserve your name on every social media network that you may ever want to be on!  Unless the site is geared toward inappropriate content, I highly recommend reserving your name.  At the bottom of this blog post there is a ShareThis link.  If you click on that link it will list the top 20 social networks currently on the web.  If you do not plan to begin actively using the network now, post a message saying you are determining how you will use it in the future and tell visitors how they can contact you now.
3. Involve compliance!  Have you compliance staff offer guidelines appropriate content.
4. Being current and relevant are very important.  It is a good idea to have a "fast track" review process in place with your compliance staff when posting to a blog, Twitter, Facebook, etc.  You are going to want the ability to publish information quickly.  Figure out in advance what the quickest way to have compliance "bless" your material is.  Ideally compliance should be able to review material in an hour or so, rather than a few days or weeks.
5. Have compliance set guidelines on information that can be published on an ongoing basis without being reviewed in advance.  For example, I noticed one bank uses Twitter to occasionally promote rate specials.  If this is something you plan to do, have compliance provide guidelines for how it is to be done once and following those guidelines going forward rather than having a compliance review done each time.
6. Social media coach Laura Roeder (http://twitter.com/lkr) posted a couple comments on Twitter on March 24, that I think are very valuable.
   1. "Don't put a pitch as your bio (on Twitter), (it) makes people feel like they will get a ton of pitches if they follow you."
   2. "The number one biggest mistake I see on Twitter is not telling anyone you are here! Put in your website sidebar, email signature, newsletter..."
7. Continue learning!  We sponsor a weekly series of free webinars geared toward small businesses, service professionals, and community banks called Free Webinar Wednesdays.  We often have discussions around social media.  Click here to see the schedule of upcoming events.
8. Popular business author Seth Godin did a blog post on April 11, 2008 in which he mentions Twitter and blogging in a very short, but insightful way.  Go read the post!  Click here to access "Drip, drip goes the Twit"

I would love to get your comments!

Jeff Simpkins, Book Yourself Solid Certified Coach
Community Bank Consulting, Inc.

Twitter: http://twitter.com/jeffsimpkins
Free Webinar Wednesdays:  http://www.freewebinarwednesdays.com/

"Helping community banks successfully integrate People, Process, and Technology"

Gen Y as Collaborators and Learners - A Vision of Students Today

On March 4, 2009, Bea Fields of Bea Fields Companies, Inc (www.BeaFields.com) presented a webinar for Community Bank Consulting, Inc. (www.CommunityBankConsulting.com) and WSI Internet Consulting (www.PoweredByWSI.com) entitled “Connecting with Generation Y as Customers and Employees.”  You can access a recording of the one hour webinar at www.CommunityBankConsulting.com.

In this webinar Bea described Gen Y as tech savvy, multi-task oriented, open communicators, quick learners, diverse and accepting, optimistic, and confident.  Like their Baby Boomer parents, Gen Y has a voice and they want it heard.  Their parents, born from about 1946 to about 1964, were known for their activism and willingness to protest in order to be sure their voices were heard.

Gen Y uses technology as the way to have their voices heard through blogs, wiki’s, and forums.  Gen Y was raised “internet ready” and tech savvy.  With the power of the internet this group collaborates with others around the world using social media and tools such as Google Docs and CollectiveX.

This short video entitled “A Vision of Students Today” is an example Gen Y’s ability to use collaboration and technology to make their voices heard loud and clear!

Twitter and the Communtity Bank - You REALLY want to know this!

Twitter.  Odd word.  Is it a word at all?  Is it something you should care about as a community banker?  Let me handle these one at a time.

First, Twitter.  It definitely is a word.  More specifically it is a website that Wikipedia defines as "a social networking and micro-blogging service that allows its users to send and read other users' updates (known as tweets), which are text-based posts of up to 140 characters in length."  Twitter was launched in July 2006.  The word Twitter is a backronym created by Comedian Josh Marino; Typing What I'm Thinking To Everyone Reading.

Second, is it something you should care about as a community banker?  It depends.  If you target market is 100% Traditionalist or Baby Boomer (see Gen Y and the Community Bank), no.  However if your target market includes Gen Y (born after 1977), and in some cases Gen X (born 1965 to 1977), you should take a serious look at Twitter and other social media tools.  For most community banks, a decision to ignore Gen Y will eventually represent a decision to slowly see business wither away.  Gen Y will soon represent the largest segment of the US population; they will soon outnumber Baby Boomers.

A great place to start learning more about Gen Y is in the book Millennial Leaders: Success Stories From Today's Most Brilliant Generation Y Leaders .  Doing business with Gen Y is very different than doing business with their predecessors.  Click here to learn more about a free webinar on doing business with Gen Y on March 4, 2009.

Back to Twitter.

What is Twitter?  To quote their homepage, "Twitter is a service for friends, family, and co-workers to communicate and stay connected through the exchange of quick, frequent answers to one simple question: What are you doing?"  In my experience, it is much more than  this!  It is a great way to reach a very large group of potential prospects in a very low cost (free), non-intrusive and non-offensive way if you follow the proper etiquette of Twitter.  To put it "old school", it's a form of networking.

In doing my research for this post I did a search on Twitter to learn who is already there from the banking community and how they are using Twitter.

I was most impressed with Wachovia (http://twitter.com/Wachovia), which became part of Wells Fargo (http://twitter.com/WellsFargo) at the beginning of this year.  Wachovia indicates "We're here primarily to listen, to learn, to engage with the Twitter community and, occasionally, to share information about our company and services." in their Bio.  There are currently 1,736 users following the posts Wachovia makes on Twitter.

Okay community bankers, here is the most valuable piece of information in this post!  When I looked up Wells Fargo, their Bio says "We're holding our name for now, but hope to participate soon."  There are 438 people following them already.  The moral of the story?  Register your bank name on Twitter immediately after reading two blog posts on choosing a name!  Sarah Evans discusses choosing a Twitter ID and much more in a post entitled HOW TO:  Build Community on Twitter on Mashable.com.  Rick Butts offers some useful tips on the importance of the correct Twitter ID and how to change it if you picked the wrong one in a blog post entitled How to Change Your Twitter Username ID on RickButts.com.

Here are a few other examples of banks currently using Twitter well, and banks that show good potential.

Using Twitter well:
North Shore Bank, Wisconsin and Illinois - http://twitter.com/NorthShoreBank
1st Mariner Bank, Baltimore MD - http://twitter.com/1stMarinerBank
First Arkansas Bank, Arkansas - http://twitter.com/fabandt

Showing good Twitter potential:
Northeast Bank, Maine & New Hampshire - http://twitter.com/Northeast_Bank
Nicolet Bank, Northeast Wisconsin, Green Bay - http://twitter.com/nicoletbank
Chesapeake Bank, Virginia - http://twitter.com/chesbank
Fidelity Bank, Greater Scranton/Wilkes-Barre PA - http://twitter.com/Fidelity_Bank

Are you wondering where to start?  Here's what I suggest:

1. Register a Twitter ID for your bank following the ideas mentioned above.
2. Post a message on the bank Twitter ID indicating you will begin posting "Tweets" in the future similar to what Wells Fargo has done.
3. Register a personal Twitter ID to get a feel for the community.
4. Follow all the banks you can find to see how they are using Twitter. Copy what they are doing correctly!
5. Become familiar with Twitter etiquette.  Randy Gage did an excellent blog post with some good guidelines for Twitter etiquette called Tweet This!  A Twitter Manifesto. 
6. Run a "beta test" by posting tweets to your personal Twitter ID for a period of time. Experiment using various tools for making post such as cell phone, etc.
7. Start tweeting!

Community bankers start your engines! You're ready to begin.

There is an eight minute video of Evan Williams, CEO of Twitter, on Ted.com that is absolutely worth watching!  Check out Evan Williams:  How Twitter's spectacular growth is being driven by unexpected uses.  Follow Evan on Twitter at http://twitter.com/ev.  He's a pretty popular guy with 190,497 followers on Twitter as I write this post.

Oh yes, and be sure to follow me on Twitter at http://twitter.com/jeffsimpkins

Happy Tweeting!