The role of the bank teller is evolving, and in today's environment they must do more than transact, the must also sell! But making the move from Tellers to Sellers takes a commitment to training - but it also requires banks to focus on four areas: Strategy, Organizational Structure, Branch Efficiency and Sales Process.
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Industry challenge: starved for revenue, burdened by expenses
The challenge:
Need for growth, but fewer opportunities: less fee income, low interest rates
Higher costs, largely due to increased regulation, have made it tough for banks to
significantly improve profits
Significant opportunity to improve branch efficiency/reduce cost…
Redefine the model: the right branch configuration to efficiently meet customer needs
Enable more efficient service through improved technology
Shift branch staffing toward more flexible, “Universal Banker” model
…and grow revenue
Tilt branch staff skills and focus away from declining transactions and toward sales
growth
Create cost savings
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Serving customers tomorrow requires change in strategy
Primary role of the retail branch: drive customer acquisition and support consultative sales
Drive new customer acquisition and provide sales and for existing customers
Support business customers, who are more dependent on branch services
Build and reinforce bank’s brand
Customers still value branch presence
64% identify branch convenience is primary reason for choosing their bank
61% still visit a bank branch at least once per quarter
Channel preferences are changing
Transactions conducted in bank branches are declining 6-7% per year
Transaction behavior and routine servicing shifting to other channels
Shrinking branch traffic leaves fewer sales opportunities
New accounts opened per branch FTE declined 23% since 1997
Source: American Bankers Assn. Consumer Survey, 2011 Source: Gordon Smith, “Consumer & Community Banking” 2/26/13, J.P. Morgan & Chase, SNL Financial
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% of Consumer Deposits Through Tellers(1)
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Turning Tellers Into Sellers
The teller role is evolving
With transaction volume’s declining, tellers must contribute to
increased sales volume.
Technology advancements continue to automate customer
transactions
Self service allows customers to conduct their own transactions and
ATM’s can take deposits, analyze the customer profile for next
product need and promptly explain the benefit
Cash Recyclers are eliminating or reducing cash counting/balancing
It’s more than merely changing a job description as it requires
fundamentally changing their jobs and compensation
Tellers must be trained to focus more on the needs of the customer
Tellers must do more than transact, they must also sell…
Tellers see more customers than anyone in the bank
Teller transactions give off obvious indicators of sales opportunities
The feasibility to have specialized teller rolls within the branch is
declining
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Turning Tellers Into Sellers
Making the move from Tellers to Sellers takes a commitment to training - but it also
requires banks to focus on four areas:
Strategy
Organizational Structure
Branch Efficiency
Sales Process
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It is more than providing a script and an incentive
It must be a significant strategic initiative
This means providing new skills to enhance customer and product knowledge
More than just sales skills
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Turning Tellers Into Sellers
Your focus should be on four main areas:
Strategy
How will this change alter the customer experience?
Competitive risks?
Can our Information Technology support this initiative?
Which products should we focus on?
Organizational Structure
Altering the teller job description clearly has implications for the retail structure.
How does this impact other functions, such as new accounts?
Do we institute the “Universal Associate”?
Take the time to organize “well” and reconsider your staffing model
Communicate changes thoroughly in advance
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Turning Tellers Into Sellers
Branch efficiency
Previous staffing model was calibrated on teller transactions
How will you measure change?
The staffing model must recalibrate based on a new sales process
Sales Process
How will the sales process for tellers differ from the traditional sales process around
qualifying prospects, making the offer, overcoming objections, closing, etc..?
What new technology will be needed to support this change?
What will the customer think?
Training on selling and communication skills will be essential
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Turning Tellers Into Sellers
In summary:
Creating a trained and effective Teller sales force appears compelling and potentially lucrative
Sales improve, when combined with the right marketing paradigm and disciplined sales/service
process
Technology advances will continue to support customer unassisted transactions
We will need to provide new skills through extensive training to support needs based sales activities
Require a new staffing model to create an environment that supports the customer experience
Behavioral change comes from planning for conscientious and comprehensive strategic change.
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Peak Performance Consulting Group
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