SHIFT THE FOCUS

There is an urgent need to shift our focus on the EARNING POTENTIAL OF A CUSTOMER. How much income does bank get from Mr X, by way of interest, commission, exchange etc., should occupy the mind. We have all along been concentrating on giving good service to customers. Of course, it should continue. It is time our thought process graduated towards identifying the customers who consistently give us good business: either deposits or availing credit facilities or thro, ancillary business. Let me explain.

CASE 1:

Mr X has been enjoying credit facilities from us since a decade. Most of the staff know that Mr X is a top customer. But how many of us have bothered to check exactly how much income the bank has earned in absolute number. This is where the point lies-EARNING POTENTIAL.

The bank has earned over Rs 500 lacs from a single account of Mr X over a period of ten years. It means a yearly income of Rs 50 lacs! In all probability, Mr X could be paying the entire salary of the branch!! Did you know it, let alone think along these lines?

CASE 2:

Mr Y has been our customer for ten years and his average deposits over these years amount to about Rs 5 lacs. Our bank would have earned a net income of Rs 2.50 lacs on the assumption that interest paid is @ 5% and interest earned is @ 10% over a period of ten years.

Now contrast this with what Mr X and Mr Y are getting from the bank by way of service.

-you don’t mail them dr/cr advices

-hardly ensure quick realization of OBCs

-general disinterest in attending and responding to such customers

The list goes on. Pretty ordinary stuff.

This is exactly why I am suggesting that there should be a SHIFT IN OUR FOCUS from ‘merely knowing our top customers’ to ‘what/how much they mean to the bank in terms of EARNING POTENTIAL and treat them the way they ought to be. How much Mr X contributes to the ‘BOTTOMLINE’ of the bank should be our focus. Once we begin to look at the customers from their EARNING POTENTIAL, I am pretty sure that we will attain the ability to discern and define TOP CUSTOMERS AND TREAT THEM FOR WHAT THEY ARE!!

Each branch must make a list of top income earning customers and every staff member must have a copy. The list must contain the amount of income earned from each such account in order to suitably alter the mind-set of staff. The knowledge that our salary is paid by the bank thro’ such TOP INCOME EARNING accounts is sure to trigger a change in our attitude towards such customers specially.

And now, how to ‘make a difference’: Let’s do it this way:

Ideally, every staff should know our TOP CUSTOMERS from their income earning potential. However, it is not always the case. One way to DELIGHT TOP CUSTOMERS is to invite them to branch after business hours and share a mug of coffee/tea ALONG WITH ALL STAFF MEMBERS. They may be invited in groups of 3-4 or individually depending on the convenience of the branch. It should be a very INFORMAL MEETING with the sole purpose of getting to know one another well and cultivating and enhancing healthy banking relationship with TOP CUSTOMERS.  Such meeting could be held once a month and in course of time covering all TOP CUSTOMERS.

This has several advantages:

It will break ‘the ice’, if any.

It will create good will.

Staff will be ‘attentive & sensitive’ to their requests/needs as they get to know them well.

It will break the monotony and hopefully activate the ‘grey cells’ and ignite the passion to be creative during such informal ‘tête-à-tête’!

C’mon friends, let’s do something DIFFERENT and be the trendsetter. Our tall claims notwithstanding, customers are not exactly happy with our service. You and I know it. It beats me we are still capable of treating customers with supreme neglect and rustic attitude. Hopefully, things will change. Hopefully, you and I will live to see that day. After all, we live in HOPE, don’t we?

Definition of TOP CUSTOMER: ONE WHO ADDS TO BOTTOMLINE SIGNIFICANTLY.

Friends, let’s SET THE TREND and SHIFT THE FOCUS ON SUCH TOP CUSTOMERS!!