Monday, September 15th, 2014 - Roy Morgan Research

The satisfaction level of the business customers of the four major banks reached 67.3% in August 2014, an increase of 0.6% points over the last month and 2.5% points since August 2013, and the highest level since 2010. Westpac increased its lead among the big four for business customer satisfaction with 72.3%, well ahead of second-placed NAB on 67.3%, ANZ with 65.4% and CBA at 64.6%. These are the latest findings from the Roy Morgan Research Business Single Source survey of around 12,000 interviews per year.

Business customer satisfaction improving

Over the last year, Westpac was the biggest improver (up 4.4% points to 72.3%), followed by the NAB (up 3.7% points to 67.3 %), ANZ (up 2.8% to 65.4%) and the CBA, which was down 0.4% points to 64.6%.

While each of the major four banks is competing for top position among their peers, the market leader, Bendigo Bank, remains well ahead of all four with 85.2% satisfaction, an increase of 5.3% points over the last 12 months.

Business Satisfaction with the Big Four Banks

business-sat-big-four

Source: Roy Morgan Research Business Single Source, August 2014, average 6 monthly sample n=6,400

Business banking customer loyalty a major issue

While there has generally been a strong increase in business banking customer satisfaction for most of the major banks since 2010, there has also been some improvement in customer loyalty across most banks as a result, measured by the proportion of business customers who deal with only one bank . However there remains a problem in that the majority of business customers of most banks still deal with more than one bank. Of the eleven major business banks looked at, only the NAB (52%) and the CBA (51%) had a narrow majority of their customers using them as their only bank. Of the other major banks, the best performers were St George (49%), Bendigo Bank (47%), Westpac (46%) and ANZ (46%). The smaller banks were all much lower (in the range of 9% for Citibank up to 36% for Bank of Queensland). This poorer performance is as a result of the business customers of these banks also generally dealing with one of the big four. 

Business Bank Customer Loyalty — deal with only one bank*

business-bank-loyalty

Source: Roy Morgan Research Business Single Source, 6 months to August 2014; n=4,135

The major bank competitors for NAB customers’ business are the CBA and Westpac; for the CBA it is Westpac; for Westpac it is the CBA; and for the ANZ it is the CBA and Westpac.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“Satisfaction among banks’ business customers is now at record high levels but still well below the satisfaction levels of their personal customers. It is also below the level that is likely to drive increased customer loyalty, cross-sell and advocacy. At the current satisfaction levels, only a minority of the business customers could be regarded as likely to recommend their bank to others.

 

“The best performer of the big four is Westpac where 50% of their business customers would be regarded as likely to recommend their bank, but for the other majors this slips back to around 40%. It is not surprising, given its very high satisfaction level, that Bendigo Bank’s customers would be the most likely to recommend the bank to others with a very high 73%.

 

“The improvement in satisfaction levels over the last four years is encouraging but there are areas still in need for better performance,  such as being more understanding of customers  and their business, following developments in their industry, and having more regular contact.

 

“Competition in this market is likely to increase as banks look for growth opportunities and with this will come the issue of how to best retain and grow the business from their existing customers. This presents a major challenge in an environment where more than half of the business customers of most banks already deal with at least one other bank, making switching a much easier task”

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Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Samantha Wilson
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Keywords

westpac, anz, nab, cba, banking, business, finance, banking satisfaction

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