Commentaries | Mar 23,2019
Dec 30 , 2023
By Carolyn Kissane
I was having a captivating chat with one of my oldest friends when an unexpected interruption in the form of a man dressed in a grey suit abruptly halted our conversation. Engrossed in our discussion, both of us were visibly irritated to be disturbed by an individual inquiring about our plans to purchase a house. He was a real estate agent.
He delved into details about the size of rooms, playgrounds, and kitchens until he dropped the bombshell –the initial payment that exceeded our imaginary budget. My friend's laughter echoed in response, not because it was exorbitant, but because it surpassed her financial limits. She casually mentioned her struggle to put food on the plate, let alone buy a house. It was a strategic move to deter him from further attempts.
My friend, despite a decent salary and a successful career, confessed to playing the poverty card to often ward off relentless sales representatives. This speaks to the frustration many feel when bombarded by unsolicited sales attempts and raises questions about the comfort of such practices. It highlights the need for a more respectful and personalised approach in sales, one that recognises the individuality of financial situations.
The conversation veered to bank employees urging customers to open yet another account. I recounted the number of accounts I have opened with a minimal deposit while it remain largely dormant. It was a humorous twist on the perceived success of increasing account openings, as true success, in my opinion, lies in properly managing the active ones.
Curiosity led me to explore why commercial banks persist in convincing customers to open additional accounts, even when immediate benefits are not evident. During a conversation with a banker, I discovered the advantages of building a stronger connection with the customer, increasing the potential for cross-selling other products and services. This, in turn, translates into higher revenue and a loyal customer base which not only strengthens the bank's position but also enhances its negotiating power with businesses and lenders.
The data generated from each transaction associated with a new account contributes to a wealth of information, enabling personalised marketing campaigns, tailored product recommendations, and improved risk assessment.
The exploration into the bank's perspective provides valuable insights into the strategic thinking behind urging customers to open additional accounts. However, it also underscores the importance of respecting the customer's autonomy and providing incentives and convenience to encourage active usage.
Many customers may not see the need and the hassle of transferring funds and setting up new arrangements. Even if a customer does open a new account, there is no guarantee of active use. The persistent intrusion of sales pitches prompts individuals to employ various tactics, even misrepresenting their financial situation.
Sales pitches and personal finance require a delicate balance. The encounters with real estate agents and bank employees prompt reflection on the need for more respectful and personalised sales practices and the importance of active engagement and satisfaction in relationships.
We must be given the room to make choices that align with our financial goals and values. Similarly, institutions must strike a balance between business objectives and customer well-being, recognising that true success lies not in numbers but in the quality of relationships built with their customers.
PUBLISHED ON
Dec 30,2023 [ VOL
24 , NO
1235]
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