Two years ago, Glen Lazovick made a point of visiting his credit union’s branches and doing something radical: He talked to the tellers.
It was one of the best decisions the newly hired senior vice president of lending at Mid-Atlantic Federal Credit Union ever made, he said. By meeting with these front-line employees, training them and offering long-term support, the number of mortgages the Washington D.C. credit union is making has gone through the roof.
Thanks to its tellers, MAFCU went from producing about $15 million in mortgage in 2006 to more than $66 million in 2008. The credit union has produced about $64 million through June of this year, Lazovick said.
Results like this is the main reason Lazovick and other banks, credit unions and financial institutions are so interested in cross-selling programs for tellers and similar employees.
These programs range from the simple to the sophisticated, but they all have one thing in common – the personnel received detailed training and were encouraged to really get to know the members before selling anything.
So how did Lazovick get started? When he was hired in 2007, he went straight to the teller’s window for answers as to why MAFCU was not selling mortgages to its potential.
“I immediately recognized that to spur the mortgage department’s growth I had to reach out to the branches,” Lazovick said.
Lazovick began with a simple training session for tellers, introducing them to the various mortgage options the credit union offered. The next step was essential: He gave them a kind of cheat sheet that outlined the programs and what the tellers needed to ask members about their lending needs or current mortgage.
“It made them feel more comfortable and confident they could answer any questions a member had,” Lazovick said.
Selling was actually easy, he noted, because a good deal of the credit union’s members were unaware of MAFCU’s mortgage products. Educating the tellers ended up educating the whole credit union as to a massive problem they were previously unaware of.
Tellers also kept track of the responses they received and Lazovick kept them up to date as to whether the member received a mortgage or a refinancing through MAFCU. Those tellers who successfully got new mortgages received a small financial reward and something just as important – Lazovick’s personal thanks.
This year, all employees of ADP Federal Credit Union completed a sales and service culture training program that led to a comprehensive cross-selling program throughout its four branches in Georgia, Texas and New Jersey.
ADP found that its members, especially high-income individuals, were generally not aware of the credit union’s interest-bearing checking and money-market accounts. By asking the tellers to promote these accounts, the credit union’s revenues went up significantly, Kyle W. Jaremko, ADP’s member development and marketing manager.
“We are continuously monitoring the program and results, and our managers and employees are working together to help find and develop areas that need improvement,” Jaremko said. “Our ultimate goal is to implement a module that will automatically match members needs to products or services we offer.”
Mazuma Credit Union in Kansas City, Mo., takes a more philosophical approach. Rather than focus on selling products, the credit union is working with its tellers and call-center employees to create meaningful relationships with its members, said Mazuma President and CEO Rob Givens.
For example, Givens said employees are encouraged to use a member’s name throughout the conversation. They also avoid using casual terms like, “No problem,” when a member shows appreciation. Rather, employees are encouraged to reply with phrases such as “Absolutely! It was my pleasure.”
These small yet positive experiences cement the bond between Mazuma and its membership, Givens said. The next step the credit union takes is to attempt to get to know the member on a more personal level, asking what their goals and aspirations are. With that information in hand, Mazuma employees then suggest programs the member might benefit from.
“Working together, we make members financial dreams come true,” Givens said. “We want (our employees) to know you can work anywhere but here you have an opportunity to make a difference in someone’s life.”
The challenge the credit union is working on now is how to develop relationships during transactions that are typically short, like when a customer is going through the drive-thru window.
