Lessons from Congress...

Well...today the stock market is taking a beating.  I usually don't make political comments in our blog...and this one is not a strict political commentary...but I must borrow from the recent political happenings surrounding the debt ceiling.

Congress toiled and toiled and bantered around a political hot potato that is the statutory debt ceiling for the United States.  Finally, at nearly the 11th hour, Congress ratified an agreement that in principle increased the debt ceiling and addressed several other key political points...however, they forgot to ask the rating agencies for their reviews. As you know, on Friday Standard and Poors downgraded the rating on US debt...creating the exact problem that Congress was trying to avoid!

The lesson here is that you MUST not only pay attention to the interested parties in your market (for us...our customers and potential customers) but LISTEN to what they have to say when you actually ASK them for their input.

The customer has keen insights and may see things differently than we do...like the rating agencies seeing things differently that Congress. 

You need to stop and engage your customer and marketplace to determine WHEN and IF the actions that you are considering are going to be accepted and if not...help to determine what you should do!

Far too often, as an industry, we have insulated ourselves in meeting rooms and have a false sense of the customer pulse...the only way to know it, is to take it yourself through customer interactions and asking tough questions.

So, learn the lesson that Congress has not yet learned...ask the questions and be ready to modify your answer or strategy based upon the feedback you receive....in the end, you will be miles ahead and dollars saved!

Cheers!

Bruce

Shop Around...

It’s the holiday season and everyone has shopping on the mind. But what about shopping your competition - have you shopped them lately?

Touching base with your immediate competition on their advertising, products, access, and customer service is something your financial institution should consistently be doing in order to ensure you are maintaining your competitive advantage.

It may be time to take a look at the competition and see how you stack up in the following areas:

• Advertising: What products/messages are your competition promoting and how does your financial institution stack up?
• Products: Do gaps exist in your competitions’ product lines or within product features?
• Access: What are the features of their websites and is the website interactive and resourceful? Also, what other technologies can customers/members use to interact with the bank/credit union or access their accounts?
• Customer Service: Communicate with your competition in a variety of ways (email, phone, in person, etc.) to see how they stack up. Are there ways that they excel or fall behind?

Competitive research equips you with the information that you’ll need to uncover where your financial institution excels and may lags behind. Once complete, you will better be able to identify your strengths, correct any weaknesses, and capitalize on opportunities!

Happy shopping!

Jamie