articles by xbridgers
Business Money, September 2005
The Age of Deference is dead. Also dying should be the way the market currently sells commercial finance. In the new 'Age of Reference' individuals no longer defer to the advice of others such as their bank manager. Instead business decision makers rely far more on their own research and are more receptive to influence by those with whom they more readily identify. Lenders must now learn to reflect this attitudinal shift in their sales process, embracing the new Age of Reference.
The Internet has been the key driver for the Age of Reference, enabling business decision makers with more information. Banks have accelerated this trend by putting increasingly more junior staff (who are less educated about commercial finance) in their branches, with rigorous sales targets to meet. Lenders must proactively adapt to this reality, and put the sales processes in place that are required to nurture and convert these newly educated customers.
Historically there has been a lethargic approach to customer capture in the marketplace -- often relying on other internal departments within the organisation for sales leads. Traditional external introducer relationships tend to be of limited quantity or value - and even 'quality' relationships will become stale without sufficient nurturing. This 'second hand' approach to generating prospects is not scalable because it fails to address the requirements of The Age of Reference. This new epoch creates opportunities to change this, educating and reaching out to potential customers through the use of direct marketing media and the internet, to those that would not otherwise be aware of, or consider, products such as invoice finance.
Responding to potential customers swiftly is the first step. In the Age of Reference, a prospect needs prompt and informed contact. Any delays in prompt contact will ensure that the prospect is lost to a competitor. Xbridge requires the lenders who participate on its marketplaces to respond to prospects within two business hours. Amazingly, few lenders can meet this requirement.
Once acquired, prospect relationships need to be developed and nurtured. This is achieved in the Age of Reference with a mix of both automation and personalisation. Over reliance on one element will be to the detriment of the other and the opportunity of converting the lead. An effective CRM system will ensure timely customer contact, scheduling and tracking. It will also manage the automated contact as well as assist in ensuring the most effective personal contact is made.
In the new Age of Reference such CRM tools need to work on an integrated basis throughout an organisation to be effective. From the first time customer information is captured, all the way through the sales process and subsequent relationship management, the mindset must be proactive and focussed on the end game - converting the potential customer -- and over time, increasing "share of wallet" with the customer.
Winners will succeed by blending together a 'personal service' approach, new technology, and a proactive mindset. The Age of Reference creates many new opportunities. Let's embrace them!