2012 U.S. Small Business Banking Satisfaction Study Results
In general, banks still have a way to go toward improving service to their small business customers, according to the recently released J.D. Power and Associates 2012 U.S. Small Business Banking Satisfaction Study.SM The study concludes that while overall satisfaction among small business customers with their banking services has increased from 2011, the level of satisfaction continues to trail that among retail banking customers.1 Small business banking customers experience more problems than do retail customers, and they experience fewer basic customer service elements, such as being greeted by name and being thanked for their business, which significantly impacts satisfaction.
"When it comes to customer satisfaction, sometimes it really is the little things that matter," said Jim Miller, senior director of banking at J.D. Power and Associates. "Simple gestures, such as greeting customers by name as they walk in, go a long way in providing a satisfying experience. Due to the value of their business to the bank and how frequently they visit the branch, small business banking customers expect, and deserve, a level of service that is greater than that of retail banking customers."
However, it appears they're not getting it. While overall satisfaction among small business banking customers averages 736 (on a 1,000-point scale)--an increase of 19 points from 2011--satisfaction is still lower than the average 753 among retail banking customers. For example, the Small Business Banking Satisfaction Study finds that overall satisfaction is 106 points higher among customers when they are greeted by name at the bank than among those who are not. However, only 47% of small business customers indicate being greeted by name, compared with 64% of retail banking customers--even though small business customers bank in person at the branch more than twice as often as do retail customers (an average of 36 times vs. 16 times, respectively, on an annual basis).
Not unexpectedly, satisfaction is much higher among small business banking customers who have an account manager who they perceive "completely" understands their business than among those with an account manager who they perceive only "partially" or does "not at all" understand their business (848 vs. 709, respectively). Among customers who have an account manager who "completely" understands their business, 47% say they "definitely will" continue to use that bank and 53% say they "definitely will not" switch banks. In comparison, among customers who say their account manager does not "completely" understand their business or who are not assigned an account manager, 19% say they "definitely will" remain with the same bank and 25% "definitely will not" switch.
"When small business banking customers do not have an account manager who they perceive understands their business, the impact on loyalty and advocacy rates is significant," said Miller. "In these cases, it may be beneficial for customers to look for a bank that will do a better job of meeting their needs."
Huntington Bank ranks highest in small business banking satisfaction with a score of 793 and performs particularly well in account activities, product offerings, fees, and account information. Following in the rankings are SunTrust Bank (774) and BB&T (772).
J.D. Power offers the following tips for small business customers when selecting a bank:
Now in its seventh year, the U.S. Small Business Banking Satisfaction Study measures small business customer satisfaction with the overall banking experience by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and account activities. The 2012 study includes responses from nearly 7,246 small business owners or financial decision-makers who use business banking services. The study was fielded from August 10, 2012, through September 10, 2012.
1 Source: J.D. Power and Associates 2012 U.S. Retail Banking Satisfaction StudySM
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"When it comes to customer satisfaction, sometimes it really is the little things that matter," said Jim Miller, senior director of banking at J.D. Power and Associates. "Simple gestures, such as greeting customers by name as they walk in, go a long way in providing a satisfying experience. Due to the value of their business to the bank and how frequently they visit the branch, small business banking customers expect, and deserve, a level of service that is greater than that of retail banking customers."
However, it appears they're not getting it. While overall satisfaction among small business banking customers averages 736 (on a 1,000-point scale)--an increase of 19 points from 2011--satisfaction is still lower than the average 753 among retail banking customers. For example, the Small Business Banking Satisfaction Study finds that overall satisfaction is 106 points higher among customers when they are greeted by name at the bank than among those who are not. However, only 47% of small business customers indicate being greeted by name, compared with 64% of retail banking customers--even though small business customers bank in person at the branch more than twice as often as do retail customers (an average of 36 times vs. 16 times, respectively, on an annual basis).
Not unexpectedly, satisfaction is much higher among small business banking customers who have an account manager who they perceive "completely" understands their business than among those with an account manager who they perceive only "partially" or does "not at all" understand their business (848 vs. 709, respectively). Among customers who have an account manager who "completely" understands their business, 47% say they "definitely will" continue to use that bank and 53% say they "definitely will not" switch banks. In comparison, among customers who say their account manager does not "completely" understand their business or who are not assigned an account manager, 19% say they "definitely will" remain with the same bank and 25% "definitely will not" switch.
"When small business banking customers do not have an account manager who they perceive understands their business, the impact on loyalty and advocacy rates is significant," said Miller. "In these cases, it may be beneficial for customers to look for a bank that will do a better job of meeting their needs."
Huntington Bank ranks highest in small business banking satisfaction with a score of 793 and performs particularly well in account activities, product offerings, fees, and account information. Following in the rankings are SunTrust Bank (774) and BB&T (772).
J.D. Power offers the following tips for small business customers when selecting a bank:
- Before opening a new account, look for a bank that conducts a needs assessment that explores current and future banking requirements. Make sure the bank explores both business and personal needs, if appropriate.
- Fully understand account fees and credit terms. Discuss any questions, concerns or changes with the assigned account representative. Shop around at other banks to compare terms and fees based on current activities.
- Test the bank's contact center. See if the automated phone system offers clear and simple options for common account inquiries. Determine if live support is readily available 24/7 or during the times your company may need help.
- Verify that your bank has the online tools your company needs, including clearly presented information that is easily navigated, access to at least one year of account history and online images, and availability of online financial counseling, tips and advice.
- Ensure problems and complaints are handled efficiently and effectively. Identify the point of contact for follow up and/or resolution, and know the chain of command for escalation in the event you're not satisfied with the answers or resolution you receive.
Now in its seventh year, the U.S. Small Business Banking Satisfaction Study measures small business customer satisfaction with the overall banking experience by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and account activities. The 2012 study includes responses from nearly 7,246 small business owners or financial decision-makers who use business banking services. The study was fielded from August 10, 2012, through September 10, 2012.
1 Source: J.D. Power and Associates 2012 U.S. Retail Banking Satisfaction StudySM
View 2012 Small Business Banking Ratings
View All Financial Services Ratings
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