Empowering relationship managers to grow the sales pipeline

The role of a relationship manager at a financial institution is more than client service; it's also focused on building the sales pipeline. This can be a powerful combination or a recipe for disaster. The difference comes down to the skills and competencies of the relationship managers on your team. .As you're assessing the sales pipeline for 2024, it's time to consider the skills and tools your team will need for success. .In this article, we'll look at the discipline of relationship management and how it can release the flow of sales or block it completely..Planting seeds.The clients you sign today are almost never the clients you met or first spoke to last month. It's not unheard of that a client can take nine-12 months to finalize and receive funding for a complex commercial deal. The measurable part of that process might begin with a sales conversation, but it likely started long before that. .A successful relationship manager is a cross between a farmer and a plumber. They're constantly planting seeds and ensuring new leads are flowing through the pipeline. This approach can also relieve the sense of urgency or desperation that prospects loathe. If a relationship manager always develops new relationships and improves their sales pipeline, then hearing "no" isn't a personal statement. .On the flip side, there aren't many jobs where performance is on display the way it is in relationship management and sales. If a relationship manager struggles to meet a quota or client attrition is catching up with their commission checks, the evidence is undeniable. .Owning the pipeline.That's not to say that a person's sales success can't fall prey to factors outside their control. Funding gets pulled, budgets get recalculated, and supply chains fall apart. But if an RM doesn't take ownership of what he or she can control, their success will be seasonal at best. .A competent relationship manager knows what areas to focus on to keep existing clients happy, including:.Client satisfaction and retention. It can cost five times more to acquire a new client than it costs to keep an existing one. That means you need regular touchpoints to see how things are going and the initiative to address problems while they're still minor. Risk monitoring. By combining best-in-class technology and powerful data rules, it's much easier to actively monitor risk. This allows relationship managers to flag potential credit issues early on and recommend adjustments, helping clients avoid negative consequences and setting them up for long-term success. This is also a huge win for the bank and their ability to retain critical portfolio managers by allowing them to focus on the essential clients and not chase every bit of noise in the portfolio.Automation. Automation is a relationship manager's best friend. The ability to automate routine tasks and analysis is critical to freeing up time to spend face-to-face with clients. It is about relationships in the first place, so allowing for time to build them is critical.Pricing. This is connected to the first item in this list. Pricing cannot be an afterthought, especially in a high-interest-rate environment like the one we're in. If you have to increase prices, it takes a delicate touch to help customers appreciate the justification. Relationship managers also need to remember that they are part of the financial institution's value proposition, so they should be asking themselves what additional value they can bring to the higher rates that are associated with every deal in today's market. Lead generation. Some relationship managers may not feel like lead generation falls in their purview, and that may be true. On the other hand, a competent relationship manager is intimately familiar with the value they bring and can make a convincing case to prospects. .Skills to pay the bills.For the relationship managers who also handle lead generation, there are three essential skills for developing a healthy pipeline. .Prospecting.This should include a willingness to engage across multiple channels, including phone, social media, on-site visits and casual networking. Your best networking event is your daily interaction, including virtual channels like LinkedIn.. 2. Initiative.Relationship managers need the self-confidence to conduct cold outreach and guide the conversation without being pushy while also learning about the prospect at hand. This also applies to existing clients. Relationship managers should be finely attuned to clients' needs as they evolve and take initiative when there's an opportunity to deepen the relationship with additional products or services. . 3. Professionalism and patience.Managing ego is a skill that few adults learn at a high level. If you're working with leads, you must be resilient enough to hear "no" repeatedly without taking it personally. A relationship manager should also be patient enough to wait nine months before a deal closes and persistently keep the process moving no matter how long it takes. . 4. Good software makes soft skills better.A relationship manager without soft skills is like a plumber without a pipe wrench. Without the right technology and actionable data, a relationship manager will be limited in their ability to maintain and grow the pipeline. .Customer relationship management software that's designed for relationship banking provides the support that they need to keep existing clients happy and prospective clients moving through the sales journey. Make sure your institution's relationship managers have what they need to succeed in their roles, from planting seeds to fixing any leaks in the pipeline..Mike Horrocks is vice president of product management at Carmel, Ind.-based software-as-a-service firm Baker Hill.