Satisfaction amongst Banks’ business customers increased to 62.5% in August, up from 61.7% in July. The highest rating of the major banks was St George 68.1%, followed by Suncorp 65.6%, Westpac 64.2%, ANZ 63.9%, CBA 60.9% and NAB 59.8%.
Since November 2010 the satisfaction level of business customers overall with their banks has improved going from 61.4%, in November 2010 up to 62.5% in August 2011. The performance of individual banks over this period has varied considerably with the ANZ up 6.0% points, St George up 4.1% points, Suncorp up 3.1% points, Westpac up 2.3% points and CBA and NAB both down 1.0% points. All of the banks shown here have customer satisfaction levels well below those of their personal customers with the overall gap between personal and business customers being in excess of 15% points.
Chart 1: Business Banking Satisfaction
** 7 months to April 2011. Source: Roy Morgan Research Business Survey, June 2010 – August 2011; Average 6 monthly sample, n = 6,734.
The satisfaction of each bank business customers varies considerably by business size (as measured by turnover).
Micro and small businesses have the lowest levels of satisfaction with the four major banks and with around 97% of businesses being in these categories, this is the major reason the big four are falling behind St George and Suncorp who lead in satisfaction amongst these groups. Westpac and NAB are leaders amongst medium businesses and they share top position with the CBA amongst large businesses.
Chart 2 – Business Bank Satisfaction – Business Size (Turnover)
n.a - Small sample size. Source: Roy Morgan Research Business Survey, 12 months to August 2011, n=13,180.
The Roy Morgan Business Survey also measures satisfaction across the major product areas in order to assist in the understanding of what is driving the overall rating.
The satisfaction rating given to the major product areas by business customers of the CBA and NAB are generally below the industry average, as is the rating given to their Relationship Managers. Suncorp and Westpac perform above average across all product areas measured.
Table 1 – Business Banking Customers Product Satisfaction*
Source: Roy Morgan Research Business Survey, 6 months to August 2011, n=6,907.
In addition to problems across a number of products, the banks also have areas where their business customers find their bank falls short and as a result give them low ratings. These are mainly to do with having a lack of understanding of the customers industry, their business and keeping in touch. These problems are more severe amongst micro customers who obviously feel that their bank doesn’t pay the same attention to them compared to their bigger customers.
Table 2 – Major Problem Areas for Banks
Source: Roy Morgan Research Business Survey, 12 months to August 2011, n=13,180.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“It is positive to see the improvement in satisfaction from banks business customers generally over the last nine months but the satisfaction level of business customers still remains well below that of their retail customers and as a result they show little loyalty. Currently around one third of the business customers of each of the big four banks deal with only one bank. The lack of loyalty increases with business sizes, as only around 20% of small and medium businesses deal with only one bank.
“The greatest growth potential for each bank is to increase the share of products (or wallet) amongst their existing customers. In order to do this there will need to be an improvement in many major product areas as well as greater focus on understanding the customer’s business and industry. This combined with competitive pricing and value are the best way of achieving longer term profitability.”
The Roy Morgan Research Business Finance Survey interviews over 13,000 businesses per annum covering the full range of industries and business sizes so as to represent all the businesses covered by the ABS. The survey covers all aspects of business finance so as to be comparable with the well established personal finance survey which interviews over 50,000 per annum. The combined surveys represent well over 60,000 interviews per annum, giving them unique ability for in depth understanding of the two markets and the ability to understand the link between personal and business banking.
Click here for more information about the Roy Morgan Business Satisfaction – Business Banking Report in Australia.
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