Key Takeaways
- Providing more competitive rates on deposit and loan products can be a natural avenue to attract new customers.
- It’s a top priority to have a Relationship Manager that’s knowledgeable about customers’ industries.
- Smart Relationship Managers will make new technologies and their ease of use a top selling point.
Many banks have begun 2023 racing to grow deposits to support new loan origination and cover any potential default losses should the economy enter choppier waters. As Relationship Managers look to grow their list of commercial clients and the products they’re providing them (commercial loans, commercial savings & checking, treasury management), many are looking for ways to set themselves apart from the pack.
Below are five tips that can help you stay focused on what’s most meaningful to new and existing commercial customers, as well as a video from IBISWorld’s Director of Customer Communications, Isaac Satten, on how our industry research database can help:
1. Competitive pricing
It’s the obvious one, so let’s get it out of the way. Depending on an institution’s offerings, providing more competitive rates on deposit and loan products can be a natural avenue to attract new customers.
However, in an environment where a bank’s competitors are also aggressive, this strategy is likely only appropriate when you pair it with other strategies listed here. Many business owners are being called on by multiple banks, offering them similar rates, so competitive pricing will only stand out when the banker’s messaging also does.
2. Be the trusted advisor
Relationship Managers need to focus on building strong relationships with their commercial customers. According to Barlow Research, having a Relationship Manager knowledgeable about their industry is a top priority for 72.0% of companies.
This involves understanding their business needs and providing customized solutions that meet those needs. By building trust and providing value-added services, bankers can deepen customer relationships, leading to increased deposits and loans.
3. Cash & treasury management services
As part of being a trusted advisor, bankers can offer cash or treasury management services to their commercial customers. These services help customers manage their cash flows more efficiently, which can also lead to increased deposits.
It also positions the bank as a reliable partner that can help a company reduce financial exposure during uncertain economic times.
4. Marketing
Targeted email campaigns, social media ads, and other marketing tactics that reach a bank or credit union’s commercial customer base have become popular ways to generate inbound inquiries from local businesses. If your institution has a dedicated marketing team to help create this content, are they using tactics like this?
If not, Relationship Managers can create their own eye-catching email campaigns that address the industry conditions that might keep a business owner up at night or their social media posts promoting their personal brand and expertise.
5. Promote convenience
Banks and credit unions can make it easy for their commercial customers to deposit funds by offering online banking and mobile banking services. These services allow customers to deposit funds remotely, saving them a lot of time and effort.
Smart Relationship Managers will make these new technologies and their ease of use a top selling point.
Check out Isaac Satten's walk-through of IBISWorld's industry research database here:
Sign up to our newsletter and follow IBISWorld on LinkedIn to keep up to date with our latest insights and market research guides.
