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A PRESENTATION FROM DELUXE
DRIVING REVENUE THROUGH THE FRONTLINE
PRESENTED BYRUSS BELLANDTRACY DANIELS
October 19, 2010
Driving Revenue
2© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Welcome
Thanks for joining today’s presentation. All enrolled attendees will be entered
into a drawing for an Apple® iPad™.
How did you hear about this web seminar? (Please check all that apply.)
o Call from Deluxe representative
o Deluxe website
o Email invitation
o Industry association
o Newsletter posting
o Postcard invitation
Driving Revenue
3© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Speakers
Russ BellandDirector, Business ProgramsDeluxe Corp.
Tracy DanielsDirector, Consumer ProgramsDeluxe Corp.
Driving Revenue
4© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Learn how small business trends in this economy may impact your financial institution
Understand the new world of consumers
Leverage Deluxe research and secondary information to help you understand what is driving your customer’s buying habits behaviors
Put proven tactics in place to drive revenue from your branch customers
Learning Objectives
Driving Revenue
5© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Perception Buster
Colonel Sanders
Alexander Graham Bell
John Grisham
Walt Disney
Which one of these famous people went bankrupt with their first business venture?
Driving Revenue
6© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
In the next 60 minutes:
Today’s Environment
Driving Revenue
7© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Today’s Environment
What we’re hearing
Financial Institutions • Margin compression• Fee income loss• Regulations
Small Businesses • Economic uncertainty• Inability to spend for growth• Tight credit
Consumers • Unemployment• Fear of spending• Looking for value
Driving Revenue
8© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
More than 552,000 employer firms are started annually*
22% of business owners will move business away from their primary Financial Institution in the next 6-12 months**
23% plan to open one or more business checking accounts in the next 12 months**
70% of cross sell happens within the first 90 days***
30% of new DDA’s close in the first 90 days***
According to Deluxe’s internal data we see .4 new Small Business DDA’s per branch per week
Today’s Small Business
*Small Business Administration, 2009**Tower Group 2009*** American Banker Article 2008
Driving Revenue
9© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Pride in their business
Belief in serving the customer well
Talent, interest, or skill to share
A story to share about their business
Acceptance of risk
Strong work ethic
Desire for respect and good relationships
Small Business Owners Have a Lot in Common
Driving Revenue
10© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
What Keeps Small Business Owners Up at Night
Single Most Important Problem
NFB Research Foundation, January 2010
Driving Revenue
11© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
What Keeps Small Business Owners Up at Night
(Base = 302 version 1 small businesses) Synergistics, 2010
Cut back on spending is imminent
Driving Revenue
12© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Annoyed
Angry
Apprehensive
Adversarial Appreciative
Alienated
Apathetic
Small Business View of Banks
Driving Revenue
13© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Revenue
CommunityInvolvement
Staff Size
Bank Experience
Life StageAssuredness
Vision
Start Crisis
Stable
Growing
Exit
1-6
7-11
12-50
50+
1 2 6+3-5
Frequent
Occasional
None
Regular
SeesSeeksNot
ReadyNone
Somewhat
Very Sure
Sure
UnsureDimin-ishing
Stable
Growing
CircumstancesDispositionSeven factors that impact what a small business owner needs…
Seven Factors
Driving Revenue
14© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Likely Scenario Feels the roller coaster of fear
and exultation Wants to tell people his vision but
worries that they won’t get it Feels he has few resources to
accomplish a lot Works like a dog; sleeps poorly Business requires most of the revenue
Likely Current Needs Strategy Doesn’t know who to ask Trusted friend Not sure how to ask
Likely Barriers to Belief No access to capital They won’t get it Judged by what’s on paper
RevenueRevenue
Life StageLife Stage
Bank Bank ExperienceExperience
Staff SizeStaff SizeCommunity Community InvolvementInvolvement
VisionVision
AssurednessAssuredness
Dimin
Stable
Growing
Start/Crisis
Growing
Stable
Exit
1 2 3-5 5+
NoneNot ReadySees
Frequent
Unsure
Somewhat
Sure
Very Sure
Regular
Occasional
None
Seeks
50+
12-50
7-11
1-6
DispositionDisposition CircumstancesCircumstances
Start-up Stan
Driving Revenue
15© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Likely Scenario Bursts with entrepreneurial spirit If business is not tied to a particular
skill, believes that his skills transfer to most small businesses
Appreciates input from others, but tends to work from own inspiration
Life stage stability and growth foster a lot of big ideas
Likely Current Needs Strategy Trial and error Brainstorming
Likely Barriers to Belief Hurt by rejection Not looking for a relationship,
although might profess a desire for one
RevenueRevenue
Life StageLife Stage
Bank Bank ExperienceExperience
Staff SizeStaff SizeCommunity Community InvolvementInvolvement
VisionVision
AssurednessAssuredness
Dimin
Stable
Growing
Start/Crisis
Growing
Stable
Exit
1 2 3-5 5+
NoneNot ReadySees
Frequent
Unsure
Somewhat
Sure
Very Sure
Regular
Occasional
None
Seeks
50+
12-50
7-11
1-6
DispositionDisposition CircumstancesCircumstances
Creative Cal
Driving Revenue
16© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
31% of small businesses order checks from non-bank suppliers
Tap Your Hidden Revenue
Driving Revenue
17© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Tap Your Hidden Revenue
Average Annual
Business DDA
Average Commission
DBA
Annual Orders Lost at
50%
Annual Profit Opportunity Loss
for Financial Institution
10,400 $15.00 5,200 $78,000
For example purposes only. 2 DDAs per branch per week. 100 branch financial institution.
Revenue Driver:Offer checks with EVERY new account. If you don’t…you simply leave money on the table and a poor customer experience.
Over 50% of new small business checking account holders will walk out of your financial institution without a check order.
Driving Revenue
18© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Hand a Deluxe Business Product Brochureto the customer
Use Referral Express! Place order:
CallOnline platform
Tap Your Hidden Revenue
Leave the complex business orders to the experts
Driving Revenue
19© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
New Consumer World
Which trend may impact your financial institution?
Driving Revenue
20© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Green Power Luxury Shame Buying Local Education Health & Wellness
2010 Consumer Trends
New Consumer World
Entrepreneur, 2009
60% of consumers would be more likely to pay by check (rather than credit or debit card) if they knew that paying with a check would keep more money in their own local economy.Ipsos, 2010
Driving Revenue
21© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Attracting a New Checking Customer
11
10
9
14
15
15
25
38
12
28
0 10 20 30 40 50
For Better Cust Svc
Checking Package
Extended Hours
Employer Direct Dep
Better FDIC Limits
Free Checking
Unresolved Problem
Better Fees/Svc Charges
Turned Down for Credit
Higher CD/Savings Rate
(Base = 69 moved checking acct)Synergistics, 2009
No single reason stands out for why a consumer switches financial institutions.
Getting better customer service when they have a question or problem is the most frequently cited reason for switching.
Driving Revenue
22© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Perception Buster
Robert age 47 is a businessman
Tyler is a Freshman in college
Amanda is a mom of two
Earl drives cross country each summer
Which of the following consumers is more likely to write the largest number of checks in the next 5 years?
Driving Revenue
23© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
75% of consumers insist they should have the freedom to pay however they choose
38% would consider walking out of, or not returning to, a store or restaurant if that business refused to accept checks
66% prefer to shop at a store that accepts both checks and credit/debit cards as payment.
One-fifth of U.S. consumers feel that a sign in a store saying “We Do Not Accept Checks” is an example of bad customer service.
PERCEPTION:
Consumers don’t want to write checks
Consumers on Check Acceptance
Ipsos, July 2010
Driving Revenue
24© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
PERCEPTION:
Small Business Owners Don’t Want to Accept Checks
Small Businesses on Accepting Checks
Deluxe proprietary research, 2010
Driving Revenue
25© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Tap Your Hidden Revenue
Revenue Driver:Offer checks with EVERY new account. It could mean a 20% profit improvement to your financial institutions.
Average Annual
Consumer DDA
Average Consumer Paid Profit
Value
Annual Orders Lost at
50%
Annual Profit Opportunity Loss
for Financial Institution
26,000 $6.00 12,000 $72,000
For example purposes only. 5 DDAs with consumer paid checks per branch per week. 100 branch financial institution.
Over 50% of new consumer checking account holders will walk out of your financial institution without a check order, while 95% of consumers surveyed said offering checks shows great customer service.
Driving Revenue
26© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Tap Your Hidden Revenue
Maximize revenue through channels
= Incremental gross profit per order above branch channel amount(Based on actual Deluxe results. Your results may vary.)
Branch Deluxe Internet Deluxe IVR
260%
47%
228%
Driving Revenue
27© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Provide consumers choice and control
Tap Your Hidden Revenue
Check Ordering Channel
Average Profit/Order
Annual Orders
Annual Profit
Branch $3.15 10,000 $31,500
DeluxeSelect $10.75 10,000 $107,500For example purposes only.
Revenue Driver:
On average, financial institutions make 240% more profit per order through the DeluxeSelect channels.
Driving Revenue
28© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Tap Your Hidden Revenue
15% of consumers opened a new checking account online
12% of small business accounts opened a new checking account online
Revenue Driver:Is check ordering integrated into your online new account platform?Is there an “order checks” link prominently displayed in your online banking site?
Driving Revenue
29© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
www.deluxe.com/checksappeal– Entertaining education
– Monthly drawings for sharing best practices
Incorporate check sales into your incentive program
Demonstrate to your personal bankers & tellers how check sales can assist in your financial institutions profits
How can you keep checks top of mind for your frontline?
Frontline Awareness & Incentives
Driving Revenue
30© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Deluxe Small Business Merchant Check In & Win Sweepstakes
Added Value for Your Small Business
Email to Small Business Owner Point of Sales Materials & Sweepstakes for Merchants
Its free. deluxe.com/checkinandwin
Driving Revenue
31© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Frontline Bankers on Checks
“Get to know your customers likes and hobbies before ordering checks. There may be a design they overlooked that would involve their favorite hobby or interests. It will make a more personal feel from the start.”
“Every time a customer opens a new account, I always ask if they have a hobby, a favorite charity, or a special interest. This allows me to get to know my customer better, but it also allows me to point out checks that may interest them.”
“For my young customers that "Don't Do Checks!" I always suggest the mini-paks so that they have at least a few to set up auto payments and direct deposits! They usually didn't 'think about that'!”
“I offer checks as a necessity. How else are you going to pay person-to-person transactions without an ATM nearby?”
“Make sure we are doing referrals on business customers. Some businesses are new and do not know what they will need in order to run the business successfully. Checks/Deposit Slips/Endorsement Stamps/Business cards etc. a Deluxe Representative will discuss in detail and assist the customer more efficiently than we could.”
Driving Revenue
32© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
Revenue Recap
1. Leave the complicated business orders to the experts
2. Capture a check order with EVERY new checking account
3. Show up where your account holders are transacting
4. Follow-up with your new account holder through a systematic onboarding process
5. Educate your frontline and continue awareness
Driving Revenue
33© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.
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Questions
AFTER THIS SESSION ENDS Ask more questions by sending an email to deluxefinancialservices@deluxe.com
TO LISTEN TO THIS PRESENTATION You can find this presentation on www.deluxe.com/dba after 11/14/10, or email
deluxefinancialservices@deluxe.com to request.
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