The key to building a sustainable business or bank over the long term is to establish a loyal clientele, a base of clients and customers who keep coming back because they want or need what you’re selling and they enjoy the experience they have with your company. Businesses that cannot establish a loyal clientele simply don’t last. Too often, CEOs and Boards of Directors of small community banks are more interested in building a bank portfolio that they can eventually sell to a larger corporation than they are in building a strong business that will last and support the community. But, even though that may be a trend, it doesn’t have to be your reality.
In the state of Florida there’s no more popular grocery chain than Publix. You may wonder to yourself why it is that Publix is so beloved. They offer practically the same products available at other grocery chains, sometimes at a higher price, yet somehow over time, they have built a large and loyal clientele. People are dedicated to the Publix brand in ways you wouldn’t expect from a grocery store, and isn’t that exactly the kind of dedication you want your clients to have for your bank?
Unfortunately, it’s true that some small banks are operated as a portfolio of funds with the primary goal of making them attractive to potential buyers with little concern for their customer’s experience. It’s clear to me that this is not an effective way to build brand loyalty. Unlike those community banks we believe in running our bank like you would any other business, with the intention of deepening our roots in the community and strategically growing our business so that it will continue to thrive for generations.
For decades it would have been impossible for small banks to compete with the technology offered by large corporations. However, these days the democratization of technology has given banks of all sizes access to applications and other tools that enhance your customer’s banking experience while providing increased convenience and more security than ever before. Your customers live in a technological world, and they have come to expect an automated banking experience.
It’s easy to confuse free coffee and cookies in your lobby with customer service. That’s not to say there’s anything wrong with providing those amenities, but on their own they won’t help you build your clientele. Your customers want consistently excellent service with a bank they can trust. Plus, they can probably get better coffee and cookies elsewhere. Before you roll out the snacks, consider surveying your current clients. There’s no better way to determine what your clients want from you than to ask them directly.
In industries across the board, customer loyalty is built by wisely directing resources toward the programs and products that best serve your clientele. As a community bank, you already have a leg up on the clunky corporate competition. To continue growing, take stock of what draws people to your business and establish a cultural willingness to grow and expand with the times.
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