Service Differentiation Formula

 

 

C² x M = Success

In a recent blog post (Top Five Myths You Hear Credit Unions Say), I noted that one marketing myth is that “we compete on service.” After all, who says they don’t compete on service? If you are trying to differentiate your credit union on service then you have a huge challenge before you. Not impossible, but huge. You must treat service honestly instead of giving it lip service.

Here’s a formula that can help make sure service differentiation is achieved and not just discussed:

C² x M = Success

Let’s examine what the formula means:

(1)    Consistency

One of the biggest challenges with service is consistency. One branch might provide over the top service while another just mediocre. Of course, service is not just a branch issue—it involves all delivery channels (website, phone center, etc.). If your credit union is truly competing on service then your employees will provide exceptional service. All your employees. All the time.

That is the standard you must set. You cannot compromise at the department level or the employee level. Your service standards are only as strong as your weakest link. Think of your department or employee that is the weakest in service or selling. Then that is true standard. So now, how is your consistency?

(2)    Coaching

If you are truly in a vibrant sales culture then you will have coaches that reinforce it daily. A typical sales training plan is “coach, train, coach.” You coach your employees that they can sell, you train them with specific skills they’ll need (asking for the business, closing the deal, etc.), then you coach them on how well they’re doing. Notice it’s two parts coaching and one part training.

Giving your employees the proper training is only the beginning of implementing a sales culture. You cannot have success unless your managers are regularly coaching your employees. Make sure you are not overloading your managers with so many operational tasks that they don’t have time to develop their employees. If your credit union is struggling with getting your employees to cross-sell the problem could be a coaching issue. Make sure you are properly developing your coaches.

(3)    Measurement

How do you know if your sales culture is truly working? Of course the bottom line numbers tell the ultimate story: things like products per household, number of accounts opened, etc. While those long term numbers are worth analyzing, you must also have measurements in place that track how your employees are doing with service-selling skills at the transactional level.

Measurement techniques could include mystery shops, member surveys, employee observations, etc. While there are pros and cons with each of those methods, the key is to use one. If you are not measuring how your employees are doing with selling (while doing their transactions), then you are not really in a sales culture. While there is such a thing as “transactional coaching” there is also “transactional measurement.”

So how do you know if you’re really in a sales culture? If your member touch points are consistent, if your managers are coaching and if you are measuring employee-member transactions then you have the formula for successful sales culture.

What do you think? Is there anything else you would add to the formula?

Comments

[Stan Cowan]

Right on, Mark. "IF" (a BIG if) you're going to differentiate yourselves via SERVICE, this equation hits the mark (no pun intended).

However, I would almost call this a SALES & SERVICE differentiation formula (instead of just SERVICE).

Measurement - NetPromoter Score surveys go right along with this, but may be more leaning toward service (member loyalty) than sales.

[Mark Arnold]

Stan: Excellent point! In fact, based on your suggestion I'm going to change the post's title to Sales & Service Differentiation Formula. And NPS is another great measurement tool as well.