Relationship Selling Begins with Asking the Right Questions

According to the newly released 2024 J.D. Power Retail Banking Report, only 42% of bank customers are aware that their bank provides financial advice. In today’s inflationary environment, customers need financial advice, as less than half of retail bank customers in the U.S. are considered financially healthy. These numbers show a huge opportunity for banks, if their frontline people are adept at asking the right questions at the right time. In fact, the same report also found that 76% of customers who received financial advice actually acted upon it.

This is not news to those who work in banking. In fact, most banks have been working long-term to be more customer-focused. The challenge is for bankers to focus on relationship selling, asking probing, sometimes assertive questions without coming across to customers as sales-driven. This approach must be deeply rooted in the desire to guide, take care of, and help banking customers as they navigate their many options. But it takes skill and, yes, some courage too.

Assertive (not aggressive) bankers win more business and help more customers than others. These people care so much about doing the right thing for their clients that they are willing to step outside their comfort zone by asking tough questions to ensure the prospect or customer makes good decisions. But they must build trust first. Trust comes when there is understanding and empathy, which results from asking the right questions and truly listening to customer responses.

If done properly, early relationship-building conversations and meetings will help a banker understand and qualify a potential new customer. If done well, this will also streamline a banker’s efforts and pipeline, giving them more time and energy to focus on finding and building relationships with better prospects. All clients are important, but not all clients are prospects for further business. Some bankers may be uncomfortable with a more assertive approach, but if it’s viewed as helping the prospect rather than selling to the client, does that change the perception?

During initial conversations, a banker is gathering information that leads to a follow-up meeting and eventually to a solutions or presentation meeting. It is through the intelligence gained and utilized in building superior solutions that presentation meetings lead to decisions. This is the focus of relationship selling because any proposal or recommendation is built around the specific client’s identified problems, growth challenges, and revenue or personal goals.

In the process of relationship selling, the skill of asking the right questions, in the right way, at the right time is critical. Here are three ways a banker will know if a prospect is a real prospect:

1. They have compelling reasons to act, make a change, or do something different.
2. They have the capability and willingness to invest the necessary time, money, and effort.
3. They are willing and able to make the decision to fix the problem and are capable of making the financial decision.

Uncovering all of these issues, however, requires that a banker asks many questions, and some of these questions may be somewhat assertive. Consider questions like:

• What will you tell your partner/executive if they say they don’t want to make the change?
• How will you go about telling your current banker that you are no longer going to do business with them?
• Who else needs to be involved to make this decision?
• If you don’t have enough money, how will you solve the problem?
• Is this a “have to” fix or a “want to” fix?
• What happens if you don’t do anything?

Imagine if bankers were bold enough to have these types of conversations. They might fear losing business. But suppose that wasn’t the case. Suppose, by being more assertive, bankers helped customers think more deeply and self-realize areas that need attention for their financial health or business growth opportunities. Imagine if bankers allowed themselves to confidently believe that they are the expert and have the courage to make a real difference in their clients’ lives. What would happen? Bankers would build more new relationships, expand relationships, and yes, grow revenue for the bank. But most importantly, they would be helping their prospects and customers make sound financial decisions. They would start building relationships built on trust.

Anthony Cole Training offers custom-tailored banking sales training that will help your relationship managers become more skilled at having consultative conversations that revolve around asking the right questions.