A PRESENTATION FROM DELUXE DRIVING REVENUE THROUGH THE FRONTLINE PRESENTED BY RUSS BELLAND TRACY...

A PRESENTATION FROM DELUXE

DRIVING REVENUE THROUGH THE FRONTLINE

PRESENTED BYRUSS BELLANDTRACY DANIELS

October 19, 2010

Driving Revenue

2© 2010 Deluxe Enterprise Operations, Inc. All rights reserved. Proprietary and Confidential.

Welcome

Thanks for joining today’s presentation. All enrolled attendees will be entered

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How did you hear about this web seminar? (Please check all that apply.)

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Driving Revenue


Speakers

Russ BellandDirector, Business ProgramsDeluxe Corp.

Tracy DanielsDirector, Consumer ProgramsDeluxe Corp.

Driving Revenue


Learn how small business trends in this economy may impact your financial institution

Understand the new world of consumers

Leverage Deluxe research and secondary information to help you understand what is driving your customer’s buying habits behaviors

Put proven tactics in place to drive revenue from your branch customers

Learning Objectives

Driving Revenue


Perception Buster

Colonel Sanders

Alexander Graham Bell

John Grisham

Walt Disney

Which one of these famous people went bankrupt with their first business venture?

Driving Revenue


In the next 60 minutes:

Today’s Environment

Driving Revenue


Today’s Environment

What we’re hearing

Financial Institutions • Margin compression• Fee income loss• Regulations

Small Businesses • Economic uncertainty• Inability to spend for growth• Tight credit

Consumers • Unemployment• Fear of spending• Looking for value

Driving Revenue


More than 552,000 employer firms are started annually*

22% of business owners will move business away from their primary Financial Institution in the next 6-12 months**

23% plan to open one or more business checking accounts in the next 12 months**

70% of cross sell happens within the first 90 days***

30% of new DDA’s close in the first 90 days***

According to Deluxe’s internal data we see .4 new Small Business DDA’s per branch per week

Today’s Small Business

*Small Business Administration, 2009**Tower Group 2009*** American Banker Article 2008

Driving Revenue


Pride in their business

Belief in serving the customer well

Talent, interest, or skill to share

A story to share about their business

Acceptance of risk

Strong work ethic

Desire for respect and good relationships

Small Business Owners Have a Lot in Common

Driving Revenue


What Keeps Small Business Owners Up at Night

Single Most Important Problem

NFB Research Foundation, January 2010

Driving Revenue


What Keeps Small Business Owners Up at Night

(Base = 302 version 1 small businesses) Synergistics, 2010

Cut back on spending is imminent

Driving Revenue


Annoyed

Angry

Apprehensive

Adversarial Appreciative

Alienated

Apathetic

Small Business View of Banks

Driving Revenue


Revenue

CommunityInvolvement

Staff Size

Bank Experience

Life StageAssuredness

Vision

Start Crisis

Stable

Growing

Exit

1-6

7-11

12-50

50+

1 2 6+3-5

Frequent

Occasional

None

Regular

SeesSeeksNot

ReadyNone

Somewhat

Very Sure

Sure

UnsureDimin-ishing

Stable

Growing

CircumstancesDispositionSeven factors that impact what a small business owner needs…

Seven Factors

Driving Revenue


Likely Scenario Feels the roller coaster of fear

and exultation Wants to tell people his vision but

worries that they won’t get it Feels he has few resources to

accomplish a lot Works like a dog; sleeps poorly Business requires most of the revenue

Likely Current Needs Strategy Doesn’t know who to ask Trusted friend Not sure how to ask

Likely Barriers to Belief No access to capital They won’t get it Judged by what’s on paper

RevenueRevenue

Life StageLife Stage

Bank Bank ExperienceExperience

Staff SizeStaff SizeCommunity Community InvolvementInvolvement

VisionVision

AssurednessAssuredness

Dimin

Stable

Growing

Start/Crisis

Growing

Stable

Exit

1 2 3-5 5+

NoneNot ReadySees

Frequent

Unsure

Somewhat

Sure

Very Sure

Regular

Occasional

None

Seeks

50+

12-50

7-11

1-6

DispositionDisposition CircumstancesCircumstances

Start-up Stan

Driving Revenue


Likely Scenario Bursts with entrepreneurial spirit If business is not tied to a particular

skill, believes that his skills transfer to most small businesses

Appreciates input from others, but tends to work from own inspiration

Life stage stability and growth foster a lot of big ideas

Likely Current Needs Strategy Trial and error Brainstorming

Likely Barriers to Belief Hurt by rejection Not looking for a relationship,

although might profess a desire for one

RevenueRevenue

Life StageLife Stage

Bank Bank ExperienceExperience

Staff SizeStaff SizeCommunity Community InvolvementInvolvement

VisionVision

AssurednessAssuredness

Dimin

Stable

Growing

Start/Crisis

Growing

Stable

Exit

1 2 3-5 5+

NoneNot ReadySees

Frequent

Unsure

Somewhat

Sure

Very Sure

Regular

Occasional

None

Seeks

50+

12-50

7-11

1-6

DispositionDisposition CircumstancesCircumstances

Creative Cal

Driving Revenue


31% of small businesses order checks from non-bank suppliers

Tap Your Hidden Revenue

Driving Revenue



Average Annual

Business DDA

Average Commission

DBA

Annual Orders Lost at

50%

Annual Profit Opportunity Loss

for Financial Institution

10,400 $15.00 5,200 $78,000

For example purposes only. 2 DDAs per branch per week. 100 branch financial institution.

Revenue Driver:Offer checks with EVERY new account. If you don’t…you simply leave money on the table and a poor customer experience.

Over 50% of new small business checking account holders will walk out of your financial institution without a check order.

Driving Revenue


Hand a Deluxe Business Product Brochureto the customer

Use Referral Express! Place order:

CallOnline platform


Leave the complex business orders to the experts

Driving Revenue


New Consumer World

Which trend may impact your financial institution?

Driving Revenue


Green Power Luxury Shame Buying Local Education Health & Wellness

2010 Consumer Trends

New Consumer World

Entrepreneur, 2009

60% of consumers would be more likely to pay by check (rather than credit or debit card) if they knew that paying with a check would keep more money in their own local economy.Ipsos, 2010

Driving Revenue


Attracting a New Checking Customer

11

10

9

14

15

15

25

38

12

28

0 10 20 30 40 50

For Better Cust Svc

Checking Package

Extended Hours

Employer Direct Dep

Better FDIC Limits

Free Checking

Unresolved Problem

Better Fees/Svc Charges

Turned Down for Credit

Higher CD/Savings Rate

(Base = 69 moved checking acct)Synergistics, 2009

No single reason stands out for why a consumer switches financial institutions.

Getting better customer service when they have a question or problem is the most frequently cited reason for switching.

Driving Revenue


Perception Buster

Robert age 47 is a businessman

Tyler is a Freshman in college

Amanda is a mom of two

Earl drives cross country each summer

Which of the following consumers is more likely to write the largest number of checks in the next 5 years?

Driving Revenue


75% of consumers insist they should have the freedom to pay however they choose

38% would consider walking out of, or not returning to, a store or restaurant if that business refused to accept checks

66% prefer to shop at a store that accepts both checks and credit/debit cards as payment.

One-fifth of U.S. consumers feel that a sign in a store saying “We Do Not Accept Checks” is an example of bad customer service.

PERCEPTION:

Consumers don’t want to write checks

Consumers on Check Acceptance

Ipsos, July 2010

Driving Revenue


PERCEPTION:

Small Business Owners Don’t Want to Accept Checks

Small Businesses on Accepting Checks

Deluxe proprietary research, 2010

Driving Revenue



Revenue Driver:Offer checks with EVERY new account. It could mean a 20% profit improvement to your financial institutions.

Average Annual

Consumer DDA

Average Consumer Paid Profit

Value

Annual Orders Lost at

50%

Annual Profit Opportunity Loss

for Financial Institution

26,000 $6.00 12,000 $72,000

For example purposes only. 5 DDAs with consumer paid checks per branch per week. 100 branch financial institution.

Over 50% of new consumer checking account holders will walk out of your financial institution without a check order, while 95% of consumers surveyed said offering checks shows great customer service.

Driving Revenue



Maximize revenue through channels

= Incremental gross profit per order above branch channel amount(Based on actual Deluxe results. Your results may vary.)

Branch Deluxe Internet Deluxe IVR

260%

47%

228%

Driving Revenue


Provide consumers choice and control


Check Ordering Channel

Average Profit/Order

Annual Orders

Annual Profit

Branch $3.15 10,000 $31,500

DeluxeSelect $10.75 10,000 $107,500For example purposes only.

Revenue Driver:

On average, financial institutions make 240% more profit per order through the DeluxeSelect channels.

Driving Revenue



15% of consumers opened a new checking account online

12% of small business accounts opened a new checking account online

Revenue Driver:Is check ordering integrated into your online new account platform?Is there an “order checks” link prominently displayed in your online banking site?

Driving Revenue


www.deluxe.com/checksappeal– Entertaining education

– Monthly drawings for sharing best practices

Incorporate check sales into your incentive program

Demonstrate to your personal bankers & tellers how check sales can assist in your financial institutions profits

How can you keep checks top of mind for your frontline?

Frontline Awareness & Incentives

Driving Revenue


Deluxe Small Business Merchant Check In & Win Sweepstakes

Added Value for Your Small Business

Email to Small Business Owner Point of Sales Materials & Sweepstakes for Merchants

Its free. deluxe.com/checkinandwin

Driving Revenue


Frontline Bankers on Checks

“Get to know your customers likes and hobbies before ordering checks. There may be a design they overlooked that would involve their favorite hobby or interests. It will make a more personal feel from the start.”

“Every time a customer opens a new account, I always ask if they have a hobby, a favorite charity, or a special interest. This allows me to get to know my customer better, but it also allows me to point out checks that may interest them.”

“For my young customers that "Don't Do Checks!" I always suggest the mini-paks so that they have at least a few to set up auto payments and direct deposits! They usually didn't 'think about that'!”

“I offer checks as a necessity. How else are you going to pay person-to-person transactions without an ATM nearby?”

“Make sure we are doing referrals on business customers. Some businesses are new and do not know what they will need in order to run the business successfully. Checks/Deposit Slips/Endorsement Stamps/Business cards etc. a Deluxe Representative will discuss in detail and assist the customer more efficiently than we could.”

Driving Revenue


Revenue Recap

1. Leave the complicated business orders to the experts

2. Capture a check order with EVERY new checking account

3. Show up where your account holders are transacting

4. Follow-up with your new account holder through a systematic onboarding process

5. Educate your frontline and continue awareness

Driving Revenue


Enter your question in the field provided on screen

ASK YOUR QUESTIONS NOW

Questions

AFTER THIS SESSION ENDS Ask more questions by sending an email to [email protected]

TO LISTEN TO THIS PRESENTATION You can find this presentation on www.deluxe.com/dba after 11/14/10, or email

[email protected] to request.

A PRESENTATION FROM DELUXE DRIVING REVENUE THROUGH THE FRONTLINE PRESENTED BY RUSS BELLAND TRACY...

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