Launching a New Branch

This is a great start for anyone that is considering being a branch bank manager.  This article was originally meant for banking, however, the principles apply to broader topic of retail management.  I have added two additional principles for your consideration at the end.  They are formed from gaps the teams I led identified in looking lackluster performance in Denovo growth.

How to improve the chances of rapid growth
February 2, 2006

Launching a new branch involves more than just identifying a target location. There are several steps you can take to improve the likelihood of quick new-account growth at a new branch (or retail store), according to Bancography, Birmingham, Ala:

Hire staff ahead of time. Even before the branch opens, hire and deploy branch managers in the community to begin networking and building awareness of the branch. The benefits in initial account growth will far outweigh the staff costs of this tactic.

Direct market to the business community. While most branch opening campaigns include direct mail in the immediate neighborhood, don’t forget small businesses, especially in target segments. List vendors such as InfoUSA and Dun & Bradstreet coffer online lists of businesses by geography and sales volume.

Don’t forget low-tech tactics. Simple, time-tested activities such as door hangers and school sponsorships still prove surprisingly effective at driving initial traffic to a branch.

Follow up marketing campaigns for at least a year. Grand opening is not a static event that can be supported by a one-time campaign. Regular targeted mailings for at least a year will ensure that most of the surrounding residents learn of the new branch in their community.

Find peer branch advisors. Identify one or two branches in comparable demographic environments and introduce the branch managers. Provide a forum for reciprocal branch visits and online idea exchanges between peer branch managers.

Measure initial sales in smaller increments. Deficiencies in the initial sales and marketing tactics can be corrected more quickly if they’re identified more quickly. Review sales on a weekly basis and campaign responses on a daily basis.

Continuously reinforce sales training. Especially in a new market, where you might have hired entirely from outside your credit union, support the branch staff with frequent sales coaching, joint sales calls, and performance reviews.

Promote at other branches and ATMs. In an existing market, tout the new branch with merchandising at existing branches and ATMs. Banners, buttons, teller counter placards–all the same tools that support product promotions can also be employed to build awareness of a new branch, and give members who use an existing branch a reason to open a primary relationship at the more convenient new branch.

Two more points for consideration.

Continuously reinforce service delivery. In the world of banking in 2010 and my thesis, Banking 3.0, service and customer experience are a foundation.  So add #1 – is invest as much time in hiring and training people for service and simplify the processes and tools they need to do it effectively.

Don’t forget Culture. Once people are trained on the mechanics, and have the right tools, and processes run well, the difference between a winning team and an average team – and why great coaching becomes important – is will and spirit.  Add #2 – The best branch teams have the synchronicity of a top basketball or soccer team and the pride of being on that team.  This often comes from learning and applying the principles of high performance teamwork along with appropriate rewards and recognition.

Oh, and have fun!