By: Julie Story
Small businesses employ a large percentage of the U.S. workforce and are often dubbed "the backbone of America." Many large financial institutions have teamed up to extend more financing to smaller companies, which have been negatively impacted by limited access to credit and tightening conditions. In addition, local institutions, such as community banks and credit unions, are also doing their part to continue extending small business banking products to customers. However, a new study shows that banks still have large opportunities to cater to their small business clients, many of whom are underserved by their financial institutions.
According to the J.D. Power and Associates 2012 U.S. Small Business Banking Satisfaction Study, satisfaction among owners has increased, but remains well below that of retail customers. The results show that satisfaction among owners currently sits at 736 on a 1,000-point scale, a 19-point increase from 2011. In contrast, retail customer satisfaction currently sits at 753. The study's authors note that business clients typically experience more problems and complexities than retail customers, this may result in decreased satisfaction. In addition, the study notes that business owners typically experience fewer customer-service elements, such as being greeted by name and being thanked for their business.
"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, like 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."
Customer satisfaction factors
The study reveals that when it comes to customer satisfaction, there are several simple ways banks can improve positive sentiment. For example, when business owners are greeted by name, the positive impact on overall satisfaction climbs to 106 points. However, the study noted that this only happens 47 percent of the time for business owners, compared to 64 percent for retail customers. This is despite the fact that business customers are more than twice as likely to bank in person than retail customers.
In addition, the report notes that other simple actions, such as assigning an account manager to business clients to provide personalized attention can also go a long way in boosting sentiment.