We all know it’s a problem and everyone has their own opinions on why we only see a trickle of referrals but how do we open the faucet? In today’s featured post we’re here to help uncover what’s really going on at the frontlines.

Back in April we conducted a survey that included over 160 sales reps and program managers from banks throughout the country. We pulled together some common factors that have been thrown around in the industry as barriers for branch referrals and asked them to rate each one on how big of a barrier they were. Here is what we found (in order from least to greatest barrier):

Doesn’t have good rapport with sales person – only 4.3% of the respondents said that this was either a “large” or “very large” barrier while 56% said it was a “very low” barrier

Feels the sales person could hurt the relationship with their customer – only 12.3% of the respondents said that this was either a “large” or “very large” barrier while 51% said it was a “very low” barrier

Feel the customer already has the products and services from someone else – 21% of ther respondents said that this was either “large” or “very large” barrier while 18% said it was a “very low” barrier

Scared customer may ask them a question they can’t answer – 56% of respondents said this was either a “large” or “very large” barrier while only 6% said it was a “very low” barrier

Doesn’t feel comfortable probing into customer’s personal issues – 56% of respondents said this was either a “large” or “very large” barrier while only 7% said it was a “very low” barrier

These results tell us a few things. First, it’s clear that the chemistry between the sales rep and the employee is typically not the barrier. It also shows that most employees are not assuming their customers are already getting help from other financial institutions for similar products and services that their bank now offers. The most important finding tells us that employees are failing to drive referrals for both lack of confidence and fear of being seen as someone who probes into one’s personal life.

So what can you do to remove these barriers? For years, banks have hired trainers and motivational speakers to visit their employees. And to varying degrees, these techniques will work – but only for a short while. Employee turnover, a reluctance to change behavior and being asked to hit new goals on a regular basis all contribute to the employee forgetting the importance of these focused training sessions. In the end, this approach is not only short lived, but costly.

The key is developing a simple and repeatable process. A process that adds value to the relationship and puts both the customer and the employee in a comfortable position to start a dialog. Such a process that’s gaining momentum is called education-based marketing. This approach is focused on developing helpful, easy to read educational information on hundreds of financial topics and then merchandising it in a way that triggers customers to ask for help.

By putting this “Education First” approach in place, you put not only your customers but also your employees in a comfortable position to open up a dialog. And unlike one-time campaigns that give you a spike in activity, this approach can keep the faucet turned on.