Finding Untapped Potential in the Middle Market

							Finding Untapped Potential in
  the Middle Market Customer

           Joe Gillen, Founder and CEO
           Pinnacle Financial Strategies
Who Wants the Middle Market?

 Everyone is after the high-asset-value
 customers
 New competition
 What are your opportunities
 What does your market offer
Typical Target Market

 Small Business
 – What is the percentage of your market potential?
 High Net Worth Customers
 – Typical percentage of marketplace?
 – Demographic profile?


Makes up less than 18%
of your opportunity!
Identify potential customers

 High-income customers
 – Long-term relationship with personal banker
 – Small demographic
 Middle market customers
 – High future potential
 – Larger demographic
 Lower market
 – Are they moving up?
Understand customer needs

 Know your customers
 – Research/database mining
 Know how they use products and services
 – Middle-market customers want
     Convenience
     Financial flexibility
     Time-saving services
     Qualified financial advice
 – And they are willing to pay a reasonable
   amount for it!
Market fee-based services

 401(k) advisory services
 – Financial planning
 Tax preparation
 – Builds your knowledge base
 Insurance products
 – Partner with clients
 Stocks & mutual funds
 Trust services
 Overdraft privilege
Where to Start

 Understand Your Customers
 Ask Your Customers
 Ask Your Front-Line Employees
 Review Your Customer Data
 Get Local Demographics
 Create a Plan
 Use Your Assets
Customer Wants

Ask Yourself
Ask Your Employees
Ask Your Customers
Ask Former Customers
Ask Non-customers
Review Customer Data
Be “Me” Focused
Find More Untapped Potential

 Use data to anticipate your middle-market
 customer’s next need
 – Home loan
 – College savings account
 – Tuition loan
 Be there just as they realize the need
CRM?

Is not software
It’s a PROCESS
It’s a way of doing business
It’s your culture
Data Analysis: How It Works

 Analyze
 –   Customer base
 –   Product line
 –   Market
 –   Management philosophy
 Use modeling software to identify
 opportunities
 – Specific customer list for follow-up
 – Product recommendations
 – Expansion opportunities
Tap the Potential of
Your Loan Portfolio
 Middle-market customers are key loan
 prospects
  – Home/home equity/reverse mortgage
  – Small business
  – College
 Manage your portfolio to maximize profit
 and minimize risk
  – Fraud risk
  – Asset quality
  – Regulatory compliance
Tap the Potential

 Know your customers
 Understand their needs
 Market services they value
 Do it right
 Analyze and anticipate their needs
 Manage risk
 Increase profits
Make It Real

 Turn traditionally troublesome accounts
 into profitable ones
 Grow good customers into great ones
 Improve customer satisfaction and
 retention
 Attract new customers
 Boost your value
www.pinnaclefinancialstrategies.com