Retail bank sales and services unit2

THE UGANDA INSTITUTE OF BANKING & FINANCIAL SERVICES

UIBFS

ISO 9001:2008 CERTIFIED

1

Personal Services

Product Knowledge

The Competitive Environment

Selling Skills

Customers Service

Sales Interviews

MODULE COVERAGE

Introduction to Marketing

Customer Relationship Management


UIBFS


2

Definition of product knowledgeProduct knowledge is about a banker’s awareness and understanding of the

bank’s products, their features, pricing and benefits.Features:For the usual products, product features referrer to physical, tangible,

measurable characteristics of a product. You can see, hear, smell, feel or taste them. Features answer the question “What is it?” Features are easy to determine because they are usually obvious, appearing on the packaging or label or readily observable.

In banking, the products are intangible that is to say they come in form of a service. According to Kotler, a service is ‘any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

The common characteristics of financial services and products which make their marketing unique are: intangibility, perish ability, variability, inseparability.


UIBFS


3

Intangibility• Financial services are activities performed by the financial

institution but unlike physical products they cannot be seen, tasted, felt, heard or smelt before they are consumed.

• The marketer of financial services cannot therefore rely on product-based clues that the buyer generally employs in alternative evaluation prior to purchase.

• Financial service providers can try to increase the tangibility of services by making the tangibles which support the delivery of financial services very appealing.

• This is perhaps why banks have very lovely customer reception areas, neatly printed cheque books. You must realize at this point that in marketing financial services, it is easier for you to emphasize the benefits of the service rather than just describing the features.


UIBFS


4

• Since, financial services are not tangible, they do not have features that appeal to the customer’s senses, and their evaluation, unlike goods, is not possible before actual purchase and consumption


UIBFS


5

Inseparability• Financial services are typically produced and consumed simultaneously.

Physical goods are manufactured into products and distributed through multiple resellers to be consumed later.

• Financial services on the other hand cannot be separated from the service provider. What this means is that the financial service provider becomes a part of the service. It follows that services cannot be produced now for consumption at a later stage.

• This creates a new dimension to financial service marketing which is often referred to as inseparability. The physical presence of customers is essential in marketing financial services.

• Inseparability of production and consumption increases the importance of the quality in financial services. Therefore, financial service marketing not only needs to develop task-related, technical competence but also, requires a great input of inter-personal skills.


UIBFS


6

Perish ability• As you saw in the definition of a service, financial services can be referred to

as acts or performances whose consumption takes place simultaneously; that is to say, they tend to perish in the absence of consumption. Financial services like other kinds of service cannot be stored. The services go waste if they are not consumed simultaneously i.e. value of service exists at the point when it is required.

• The perishable character of services adds to the complexity of marketing financial services. The inability of service sector to regulate supply with the changes in demand; poses many quality management problems. Hence, service quality level deteriorates during peak hours in banks.

Variability• Financial services are highly variable, as they depend on the service provider,

and where and when they are provided. Banks face a problem in standardizing their service, as it varies with the experience of staff, type of customer, and sometimes even time of the day.


UIBFS


7

Benefits of product knowledge• While features tell a client what the product or service is, they don’t

necessarily sell the product to the client. Benefits sell it, hence the saying in sales “features tell; benefits sell”.

• Benefits provide the answer to the client’s question, “What’s in it for me to buy this product?” As a banker, you should know the entire bank’s products in such great detail that you are able to articulate the suitability of each of them to various kinds of customers.

• Benefits are the advantages that a product, by virtue of its features can deliver utility or satisfaction to customers. Knowledge is power and for banking, product knowledge can mean more sales.

• It is difficult to effectively sell bank services to a consumer if we cannot show how a particular service or product will address their needs.


UIBFS


8

The key advantages of having detailed and accurate product knowledge is that it;• Strengthens our communication with customers and prospects as we sell or

popularize the product• Boosts our belief in the product and thus personal enthusiasm about it, making

us passionate as we sell the product• Enhances our confidence, which can persuade the customer to believe us• Assists in overcoming objections: objections by customers can often be overcome

with factual information regarding the product, which we can very well articulate when we have full product knowledge.

• It is therefore important for every banker to fully understand each product, its rationale, target market, features, pricing and how it blends with other products.

It may take a while to fully master all the products in the bank, especially with new products being developed, but over time you can become comfortable and confident in providing the correct information to clients. As a banker, you need to be well versed with both the products of your bank as well as those of competitors.


UIBFS


9

How to acquire product knowledge Sources of product knowledge are many and varied, Below are the most commoni) Education and training • Bankers in these modern times of superfast information and fierce competition, need

good education and training on the subject of banking and finance. A degree is now almost the mandatory minimum qualification for any banker, save for the lowest subordinate grades of staff.

• Additionally, bankers need to frequently attend special training in areas of core banking as well as general good business practices so that they become more knowledgeable, up-to-date and highly relevant. Most banks conduct in-house courses/workshops to get all their staff informed on all the products.

ii) Experience• Experience is the most important source of information for product knowledge for a

banker. A keen banker will learn a lot each day, week and month of work in the working environment both within and outside his/her direct area of work.

• He/she also learns a lot from with the hundreds of customers of different types that he or she serves/meets daily, enriching product desirability from the customers’ side.


UIBFS


10

iii) Senior salespersons and long term customers• Salespersons in a bank can be the most accurate and quick source of

product knowledge to fellow bankers. If you are not in sales, you might consider regularly finding time to be with a sales person who can brief you about the products in a comprehensive way.

• Customers who have been with the bank for a long time can also be a good source of product information, especially from the consumer’s viewpoint of suitability.

iv) AdvertisementsFor bankers working away from the mainstream operational departments,

advertisements containing salient features of the products can be good source of product knowledge.


UIBFS


11

v) BenchmarkingStudying brochures, tariff guides, websites and profiles of competitors can

enrich a banker’s knowledge of the other products in the market, which can aid realistic comparisons with in-house products.

vi) Banking magazines, newsletters and libraries It is advisable for every banker to subscribe to and regularly read the two

quarterly magazines produced by the Uganda Institute of Banking & Financial Services (UIBFS) namely; The Ugandan Banker and The Microfinance Banker. Product information can also be gathered from libraries of the Institute as well as those of Bank of Uganda and

commercial banks.


UIBFS


12

Importance of product knowledge for a salespersonA thorough knowledge of the product helps the salesperson in a bank to increase

sales, obtain larger orders and render better services to the customers. Up-to-date knowledge of the existing products as well as the new products is essential for the banker to sell efficiently in competitive situations. The following are the reasons as to why a banker should have perfect knowledge of the bank’s products:

i) Personality is not enoughSales personality without product knowledge is just like a body without soul. A

salesman having excellent personality can ensure sales. Though personality is the starting point of any sale, perfect knowledge of the products backs the salesman in dealing with the customer and impressing them.

ii) Better sales• A salesman sells benefits of a product. Unless he knows the product in detail he

can not provide information to the customers about the product and its utilities. Product knowledge helps a salesman to satisfy customers and ensures faster and better sale of the products..


UIBFS


13

iii) Strengthens self-confidence• A thorough knowledge of the product, its capacity, performance

limitations, helps the salesman to speak with self-confidence and courage.

• He can not be defeated either by the customers or rivals. Detailed knowledge of the product helps the salesman to overcome customers’ doubts and suspicions about the products.

iv) Selling becomes a pleasant task• The sense of mastery that comes with full product knowledge makes

the selling job more pleasant to the salesman. The salesman feels something lacking without the perfect product knowledge and he can not find his job satisfactory.

• A self- satisfied salesman naturally ensures better sales. He finds his job enjoyable only when he has complete mastery over his products.


UIBFS


14

v) Ensures satisfactory meeting of objections• Generally buyers enquire about the nature, function, design, price

of the product from the salesmen. Prompt answers from the salesman make them impressed. A salesman without adequate knowledge about the product may not be able to meet questions, objections, or suspicions raised by the customers about the product.

vi) Beating competition• Products are becoming complex and are changing day by day. Thus

the victory of selling over competitors depends on the up to date detail and technical knowledge of the products. A competent salesman remains well equipped with information about the products like a warrior in the field of selling.

•


UIBFS


15

In totality, the key knowledge points for the banking products salesman are;(a) Knowledge of the bankKnowledge regarding the philosophy and total offering of the bank helps the

salesperson to present the image of the bank before the customers. b) Knowledge of productsThe salesperson deals with different types of products in the bank. The

salesperson should acquire technical knowledge in selling the all types of products. This will help him to point out to customers the usefulness of the products.

c) Knowledge of market conditionsThe market is always changing and the salesperson should closely note

these changes. The changes in customer behaviours should be noted and the salesperson should change accordingly. Experience in market conditions also helps a salesman to forecast future trends.


UIBFS


16

d) Knowledge of competitors’ strengths and weaknesses

In the modern age of keen competition, the salesperson must be aware of the competitor’s strength. A detailed knowledge of the price and products of the rivals enables the salesman to guide and advise the customers about the superiority of his products over those of his competitors.


UIBFS


17

How to identify selling points of products or services Here are some tips on how to identify the unique selling points of your

products or services; Brainstorm in-house. The best source of information for identifying

your product or services selling points is you and your staff. Chances are that what you think makes your product or service great is same thing that your customers will think is great.

• What you need to do is to take a few minutes and write down everything that you think is good about the product. After doing that do a quick survey of your co-workers to see what ideas they have.

• After getting the ideas you can go to work on creating advertisements that focus on the selling points of your product. Always validate this by interviewing a few customers causally.


UIBFS


18

Conduct some market research to find out information about your competitors and their products or services. This can be built into the normal operations and thus done at no extra cost.

• By finding out everything you can about their products or services you can easily identify your products’ selling points. Some examples of this would be a lower selling price or a product that caters for all categories of people.

• Building regular customer feedback into the bank’s normal operations can help you keep up-to-date with the trends in customer tastes and market competition. This means, you can continually refine your products so that you maintain an edge in terms of your selling point.

Explore what kind of edge you have over your competitors. These would be personal qualities that only you, your employees and/or your business will offer your customers. This could be better customer service, longer loan duration period, etc. But if you can offer something for the product or service which others can't, you have another great selling point.

Business

Retail bank sales and services unit2