Beyond Neeeds Analysis

7/28/2019 Beyond Neeeds Analysis

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Beyond Needs Analysis Page | 1Kinesis CEM, LLC

Effective profiling of customers has long been considered a key component of any

sales process. Questioning customers is commonly referred to as needs analysis

as many questions revolve around client needs, but how effective are needs

questions in the efficacy of a sales presentation? Our research suggests the ROI

potential of moving probing beyond basic needs analysis and including a different

type of question one designed to get at client motivations - not just needs.

To evaluate the state of the in-branch sales process, Kinesis mystery shopped 100

branches among five banks sharing national service areas. Among the objectives

of the study were to:

1) Define the sales process among different institutions, and

2) Evaluate the effectiveness of specific sales behaviors.

Shoppers were asked a mixture of closed-ended questions to evaluate the

presence of specific behaviors, and open-ended questions to gather the qualitative

impressions of these behaviors on the shoppers in short, the how and why

behind how the shoppers felt. Finally, to provide a basis for an evaluation of the

effectiveness of each sales behavior, shoppers were asked to rate their purchase

intent as a result of the visit. This purchase intent rating provides a means of

evaluating what behaviors tend to be present when positive purchase intent is

reported as opposed to negative purchase intent, revealing which sales behaviors

have the most ROI potential in terms of driving purchase intent.

10 Most Frequent Probing Questions

In order to evaluate the profiling process, shoppers recorded what profiling

questions were asked of them as part of the sales presentation.

The table on the third page of this article displays the frequency in which 29

different questions were asked as part of the sales presentation. Of the ten most

frequently asked profiling questions, eight asked about the customersneeds or

situation.

The subject matter of these eight needs/situation questions were:

Service interested in Other banking relationships Current banking products Employment status/situation Nature of online banking use Nature of savings accounts held Nature ATM use Credit card use

Another of the ten most frequently asked questions asked about the purpose of

the account.

The remaining question in this top ten is far more interesting. Two-thirds of the

bankers asked about the customers expectations of a bank or what are they

looking from a bank.

While we have observed that nine out of the ten most common profiling questions

either ask about the purpose of the account or the customers needs/situation,

with one question about the customers expectations, the question remains, what

are the most effective profiling questions?

10 Most Effective Probing Questions

In addition to the frequency with which questions were asked, the table on the

third page of this article also displays the strength of the relationship of each

probing question to the presentations purchase intent rating. The strength of the

relationship to purchase intent is expressed as the ratio of the presence of each

question in presentations with positive purchase intent to those with negative

purchase intent. A ratio of 2.0 means the specific question was asked twice as

often in shops with positive purchase intent compared to those with negative

purchase intent.

Beyond Needs Analysis:

Asking Motivation Questions to Drive Purchase Intent


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Looking at the ten probing questions with the strongest relationship to purchase

intent, only three ask about customer needs/situation:

Nature of telephone banking use Co-account holders Number of checks written Past banking products/services

Another three ask about balances:

Average checking balance Average savings balances Minimum checking balance

And three ask an importance or motivation question:

What do you like about your bank? What dont you like about your bank? What are your expectations from a bank?

While only one importance/motivation question is in the top 10 in terms of

frequency asked, three of these questions are in the top 10 in terms of their

relationship to purchase intent.

A client of mine calls these importance/motivation questions, high-gain

questions. High-gain questions are questions designed to get to the clients

motivations what drives them? What do they want from a bank?

What do you like about your bank? - was present a whopping 6.2 times more

frequently in shops with positive purchase intent relative to negative purchase

intent.

What are your expectations of a bank? was asked 3.1 times more in shops

with positive purchase intent.

What dont you like about your bank? was asked 2.8 times more in shops with

positive purchase intent.

These and others like them are extremely powerful questions, in effect

asking the customer to tell the banker what they want in a banking

relationship, providing a road map for the sales presentation. In fact, our

research indicates the most effective sales presentations were built around

responses to these high-gain questions.

These observations suggest asking prospective customers high-gain questions to

identify their motivations and building a sales presentation around customer

motivations will yield a greater ROI in terms of driving purchase intent.

For more information contact Eric Larse, co-founder of Seattle-based Kinesis,which helps companies plan and execute their customer experience

strategies. Mr. Larse can be reached at [email protected].


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1Effectiveness defined by ratio of the frequency the question is asked in shops with positive purchase intent relative to the frequency in shops with negative purchase

intent (for example a value of 2.0 means the question is twice as likely to be asked in shops with positive purchase intent relative to those with negative purchase intent.2

Probing questions with the strongest relationship to purchase intent, again defined by the ratio of their frequency in shops with positive purchase intent compared to

those with negative purchase intent.

Probing QuestionFrequency

Asked Effectiveness1Services you are interested in 93% 1.1

Where do you currently bank/other banking relationships 82% 1.1

Current banking products/services 73% 1.9

Your employment status/situation 68% 1.1Purpose of the account (personal, household, business) 68% 1.6

Your expectations of a bank/What are you looking for in a bank 67% 3.1

The nature of your online/Internet banking use 65% 1.5

Savings accounts 65% 1.7

The nature of your ATM use 58% 1.9

Credit cards 55% 1.3

Minimum checking account balance typically carried 52% 2.8

The nature of your mobile/smart phone banking use 50% 1.6

Average checking account balance carried 50% 3.4

What dont you like about your bank 42% 2.8

Do you like loyalty programs that offer points or awards for use

of such things as credit or debit cards

42% 1.9

Past banking products/services 40% 2.7

Nature of debit card use at retailers 38% 1.8

Your family status (married, single, children, etc) 38% 1.9

Will there be any co-account holders (such as a spouse or child) 37% 7.1

What do you like about your bank 35% 6.2

Short term financial goals 33% 2.7

CDs (Certificate of Deposit) 32% 1.1

Typical savings account balance 32% 3.9

Long term financial goals (retirement, college for kids, etc) 32% 2.1

Number of checks you write 27% 3.0

Mortgages 23% 0.9

Investments other than savings, CDs or money market

accounts (investments such as mutual funds, IRA, stocks,bonds).

23% 1.8

Telephone banking 22% 8.0

Car loans 18% 2.1

10 Most FREQUENTLY ASKED Probing Questions

Services you are interested in 93%

Where do you currently bank/other bankingrelationships

82%

Current banking products/services 73%

Your employment status/situation 68%Purpose of the account(personal, household, business)

68%

Your expectations of a bank/What are youlooking for in a bank

67%

The nature of your online/Internet banking use 65%

Savings Accounts 65%

The nature of your ATM use 58%

Credit cards 55%

10 Most EFFECTIVE Probing Questions2

Telephone banking 8.0

Will there be any co-account holders(such as a spouse or child)

7.1

What do you like about your bank 6.2

Typical savings account balance 3.9

Average checking account balance carried 3.4

Your expectations of a bank/What are youlooking for in a bank

3.1

Number of checks you write 3.0

Minimum checking account balance typicallycarried

2.8

What dont you like about your bank 2.8Past banking products/services 2.7

Beyond Neeeds Analysis

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