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The Numbers Don't Lie: Why Barlow Research Matters To Every Business Banker

Posted August 13, 2015 by Susan Bell

If you've never heard of Barlow Research, your world is about to get rocked!

For those bankers who don't have ESP

Wouldn't it be great if you could read your clients' and prospects' minds? Great news: you can. Barlow Research Associates, Inc. compiles fascinating stats and big picture analysis of the banking industry, but even more relevant to you, they survey businesses about what they expect from their banker. The company was started in 1980 by John Barlow, a former banker himself, so he brings to the table a unique perspective. (P.S. He's also a well-respected, engaging speaker if you ever get the chance to hear him!)

If you want to take banking client insights to the next level, I highly recommend checking out some of Barlow Research's free quarterly podcasts.

calc2Some captivating stats

So that brings me to the Barlow Conference I recently attended in Chicago. It was a virtual who's who of banking industry research (is there such a thing?) with an agenda chock-full-o' smart presenters. There were some useful stats that I learned that underscore the fact that bankers must find an edge in this highly competitive industry. Here are a few:

>> 33% of small businesses ($100k-$10MM) anticipate ownership changes within the next five years.

When there's a new captain steering the ship, sometimes they are going to change course. And that could easily mean switching to a new bank–or a different banker they have worked with in the past. So by this Barlow statistic, if a typical banker has 100 customers, he or she risks losing one-third of their clients in the coming years. Would you like to win this dog fight? To retain clients amid ever-changing leadership, you must be the most prepared, smartest banker they meet with who can quantify your expertise on issues related to their business and industry.

>> 19% of small businesses are likely to use Google for business advice, where only 11% are likely to use a banker.

This stat harkens back to my earlier blog post, Bankers: Don't Let Google & Technology Replace You. If you haven't read it, take a gander. In short, you must find a way to connect with your clients on and intellectual and emotional level in order to attain the much-coveted "trusted advisor" status. Again, relating to and understanding how their specific industry works–their opportunities and potential pain points–is a big first step in building that relationship.

>> 28% of small businesses planning to change banks in the next 12 months said that “personal attention” would be the primary reason.

What can we extrapolate from this stat? That small business owners didn't get enough attention as children? No! But a small business owner's business IS their baby, and they long for a banker who truly understands and caters to the distinctive nuances of their industry.

Use this knowledge to win more often

So after reading these rather unsettling statistics, compliments of Barlow's great research and analysis, what can you do to increase your odds of retaining your existing clients and capturing those prospects who are disenchanted with their current banker?

The common denominator among all of these facts is that small business owners want you to not just come in and try to sell them bank products and services. Rather, they want you to learn about their business and how their industry operates, and then connect the dots between their unique points of pain and the right financial solutions to solve them. Call preparation and Vertical IQ can help you do just that.

Business owners are human, and humans inherently are drawn to people who they feel understand them–who relate to them. When you put the "relate" back into banking relationships, your clients are far more likely to see your ongoing value to them and their business.

>> Learn more about the many benefits of using Vertical IQ for your call prep. Contact us for additional information or to schedule a demo.

Tags: bankers, Barlow Research, competition, Industry research

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