Bank Business Customer Satisfaction Shows Marginal Improvement in May 2011
Announcement posted by Roy Morgan Research 11 Jul 2011
Since November 2010 the satisfaction level of business customers overall with their banks has remained almost unchanged (61.4% in Nov 2010 up to 61.8% in May 2011). The performance of individual banks over this period has varied considerably with ANZ up 5.3% points, Suncorp up 4.1% points, St George up 1.1% points, Westpac down 0.5% points, CBA down 1.2% points and NAB down 2.0% points. All of the banks shown here have customer satisfaction levels well below those of their personal customers with the gap being in excess of 10% points for each.
Business Bank Satisfaction
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Source: Roy Morgan Research, Business Survey, June 2010 – May 2011, n=13,557; Average 6 monthly sample, n=6,702.
The satisfaction of each bank business customers varies considerably by business size (as measured by turnover).
Micro businesses clearly have the lowest level of satisfaction for the four major banks and with around 89% of businesses being in this category, this is the major reason the big four are falling behind St George and Suncorp who lead in satisfaction amongst this group. Westpac is the market leader across all other categories (i.e. small, medium and large). The NAB is being dragged down in its overall rating because it has the lowest score amongst micro businesses but performs much better among medium and large businesses. ANZ and CBA have a more even performance across all segments, although both lag with their micro consumers.
Business Bank Satisfaction – Business Size (Turnover)
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Source: Roy Morgan Research, Business Survey, 12 months to May 2011, n=13,557.
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 four major banks is generally below the industry average, as is the rating given to their Relationship Managers. Westpac, St George and Suncorp are generally the only above average performers when it come to basic banking products.
Business Banking Customers Product Satisfaction*
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Source: Roy Morgan Research, Business Survey 6 months to May 2011, n=6,999.
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 customer’s 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.
Major Problem Areas for Banks
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Source: Roy Morgan Research, Business Survey, MFI Customers, 12 months to May 2011, n=13,503.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“The satisfaction level of business customers with their banks still remains well below that of their retail customers and as a result they show little loyalty. This is perhaps best illustrated by the fact that less than forty percent of the business customers of each of the big four banks deal with only one bank. The lack of loyalty increases with business size as only around one quarter of small and medium businesses deal with only one bank.
“The greatest growth potential for each bank is obviously to increase the share of products (or wallet) amongst their existing customers. Improving the focus more to understanding customer business and industry, combined with competitive pricing and value are the best way of achieving longer term profitability.”
The Roy Morgan Research Business 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.