Think Small

Think Small
Paul Herbig

Ever wonder why a particular customer chooses store A instead of store B? Why a customer would continue to be loyal to a certain bank in his town for thirty years? Or why a customer tends to make the decisions she makes? It is as important of topic as it is not as simple of issue.

The other day I took a convenience sample of customers at a local bank. Convenience, to me, meant they were at the bank at the same time I was. I know it is not scientific and a random sample but the outcome bears broadcasting to the world.

I asked one young matron why she banked at this particular bank and (as she indicated to me) she had been for years, if not decades. See if you can guess Her answer:
a) Best interest rates in town
b) Overdraft protection
c) Offered on-line banking
d) Overdraft protection
e) None of the above.
The correct answer was e. Her reason for banking at this particular bank and this one branch? “The teller knows me by name and always greets me with a smile. She knows me and my account and is always two steps ahead of me.”

I queried a second, older customer on her banking habits, using the same 5 point scheme above. Can you guess her answer? That’s right, E again. “It is hard for me to walk and they have automatic doors that make it easy for me to enter and a comfortable chair for me to fill out my slips easily without standing all the time.”

Finally in desperation, I cornered a younger male. When I found out he lived ten miles away and banked at this particular branch instead of his hometown, I figured one of these answers must be right. And the answer this time. E again. “I work two blocks away and I can walk over here during lunch hour and do any transactions I need to have done. It is just convenient that way for me.”

Perhaps I was on to something here. Perhaps all the bank marketing (and to be fair not just banks but all other sort of retail establishments) were hawking the wrong items. I asked customers one and two their opinions about the four options and did any of these impact their decisions to bank at this particular branch and company? “All the banks have about the same rates and services. If one raises or lowers rates, the rest will do so shortly thereafter. Rates are not all I want from a business.”

Finally it dawned on me. All the big things, points a through d, were easily copied and imitated. If these companies used price to lure customers in, they were attracting the wrong type of customers. If it were only a higher savings rate or a lower mortgage rate that attracted customer Z, then what happens when another bank, somewhere else, offers an even more attractive rate. How loyal is that new customer? He will be gone before the sun sets on the deal. No, the rate-seeker, the avid tire kicker is not your ultimate loyal customer.

What does make a difference are the small things in life. The little things. Having dog biscuits so when you go to the drive-up window with Fido, your precious dog won’t be neglected. Having the same teller who knows you by name. Clean restrooms. Comfortable chairs. Easy access. You can name a hundred other small, negligible items. But these make the difference. In the battle for customers, it is often those small items that will separate the winners from losers.

Don’t neglect them. Emphasize them.