Customer Value Creation: The Key Differentiator for Today’s Banks

“Consumers today are likely to find banks of all sizes offering the level of convenience, technology and personal service they have come to expect.” – Jim Miller, senior director of banking, J.D. Power and Associates

In today’s environment, quality products and services are no longer the differentiators they once were. And that means if you don’t have an engaged team that is committed to delivering superior customer value, your bank could be vulnerable to competitive threats from all sides.

How effective is your team at creating customer value?

Start by looking at their Relationship Impact: The extent to which your team is able to build deeper, trust-based relationships that add value by understanding customer needs, delivering more value than is expected, and helping them achieve personal financial goals. Their ability to create value will be reflected in the way customers view your bank:

Transactional customers view your bank as a Supplier. With these customers, your bank is extremely vulnerable because you can be easily replaced by the next offer that comes along.

To enhance value:

• Increase your sales team’s capabilities in demonstrating the unique­ness of your products and services com­pared to competitive offerings.
• Improve their relationship-building skills by helping them develop trust, credibility and rapport so they can gain a deeper understand­ing of the personal goals of your customers.

Customers who view your team as Value-Add may be satisfied, but you will be vulnerable to losing them if they discover a competitive offering of equal or greater value.

To enhance value:

• Establish a customer-centric culture that creates strong value-based relationships.
• Increase your team’s ability to identify unarticulated customer-needs and deliver value beyond the products and services you offer, which will reduce customer attrition and increase new customer acquisition.

Customers who view you as a Trusted Adviser are likely being served well by your team, but because they don’t perceive your products and services as differentiated from the competition, your bank could be vulnerable, particularly if there is ever a service breakdown.

To enhance value:

• Develop your team’s ability to more effectively communicate the value of your products and services.
• Ensure they are able to collaborate internally to deliver superior solutions compared to your competition.

If customers perceive your bank as a Partner, your sales team has maximized the value you create by developing both customer intimacy and differentiated solutions. These customers not only value their trusted relationships, they also feel their wants and needs are being satisfied by differentiated products and services. As a result they will:

• Have the highest levels of loyalty and strongest emotional bonds with your bank
• Use your bank as a single source provider for their financial needs
• Become “promoters” of your organization—a key metric correlated with profitable growth

There was a time when product and service quality were the main contributors to competitive advantage. Now it’s a given that you must have product and service quality to survive—but it’s not enough to thrive. Today, the most important organizational asset driving customer loyalty is employees who are dedicated to creating superior value for your customers.

Download our POV paper, Make Value the Currency of Your Sales Approach, to learn how to effectively engage your sales team and build a strong commitment to customer value creation.

About the Author

Terri O’Halloran

Vice President of Client Development

Terri partners with our clients to strategically plan, implement, and sustain high performing sales and customer service cultures that achieve...