A client of mine told me that her banker suggested that she might be able to reduce her account service charges if she switched to a “senior’s account”. My client was skeptical and had no intention to make the change.
I asked her what she pays now, and her answer was $25 per month. Now, $300 per year seems like a sizeable amount to me (I pay $60 for unlimited activity) and I suggested that the alternative being suggested may indeed save her a few dollars.
So, why was she skeptical? There are two reasons in my opinion.
1. Baggage – The banks have focused so much of their efforts trying to upsell and cross sell products to their customers, that customers regularly question whose best interest is at heart. This will take a cultural change at the banks, and a lot of time, to overcome.
2. They still don’t get it – How did this banker endeavor to convince my client that she would be better off with a different type of account? She handed my client a glossy brochure highlighting the advantages of the “senior’s account”. This is a not so subtle message to the customer to “figure it out yourself”.
Rather than miss out on potential savings, I told my client to go back to the banker and ask for an illustration on how much she would save by switching – using her individual transaction history for the illustration. In my practice that’s the approach I take when illustrating why one financial decision is preferable over another. Time consuming? Yes. A better result for clients? Definitely.
Great customer service is more than handing out a brochure. Insist that you get it.
Rona Birenbaum is a certified Financial Planner and is licensed to do financial planning. Rona is registered through separate organizations for each purpose and as such, you may be dealing with more than one entity depending on the products purchased. Rona is registered through Caring-for-Clients for financial planning services. This website is not meant as a solicitation for financial advisory services. Financial advisory services are available through the facilities of Queensbury Strategies Inc. Financial Planning is not the business of or under the supervision of Queensbury Strategies Inc. and Queensbury will not be liable or responsible for such activities.