Getting inside the customer's head: you can get closer to your customers--learning what there thinking and what they want next--through the judicious use of citizen advisory councils.

• Author: Dorfman, Rich
• Position: Customer Advisory Councils

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Bankers are taking a page from other Industries by borrowing the idea of customer advisory councils (CACs)-a popular corporate strategie initiative-to tap into the customer mind-set. More in-dept than traditional customer surveys, one-on-one interviews or even focus groups. CACs provide the benefit of ongoing insight and marketplace intelligence to inform a company's strategies and tactics. Banks can leverage the CACs to test new product and service ideas, review business plans or preview ad campaigns to ensure that these concepts resonate as intended before hitting the general market.

These representative groups of Select customers also speak for the that Banks wish to target. Counsils are generally Comprised of eight to 12 members from high-priority customer groups (or industries) within different geographic markets. These facilitated meetings into consideration to help the bank instituionalize the "voice of the consumer" in everything that is does.

Key ingredients to a successful CAC

As with any research type, planning and execution is critical to garner the CAC format goes well beyond the single-point-in-time research event and includes only your most precious customers, comprehensive preparation in combination with ongoing senior level commitment to the program is a must. Here are some tips:

* Clearly define program goals.

* Invite only the right customers.

* Set and manage a meaningful agenda.

* Engage and inform participant, But don't "sell" them.

* Employ a program champion and impartial facilitator.

* Act appropriately on member feedback.

Clearly define program goals

Pat Sullivan, CEO of the Massachusetts region of Sovereign Bank (assets: $90 billion, 800 branches) Wyomissing, Pa., describes how his business customer advisory program, now in its seventh year, has a threefold purpose:

1. To be the "eyes and ears of the community" to let the bank know what's going on with customers directly.

2. To discuss and gain feedback on the bank's strategy in the marketplace, whether at a global or individual market level, sometimes before strategies are even implemented.

3. To use participating members as active business-development sources or for retention of key customers.

Each of Sovereign's market CEOs (by state where the bank has branching) has his own CAC with largely the same global objectives. Council goals, though, can vary depending upon the particular market dynamics or types of customers from whom the bank is seeking feedback.

For instance, a bank looking to identify new products and services to differentiate its offerings to the retail consumer base will...