Last October, J.D. Power and Associates released their 2010 U.S. Small Business Banking Satisfaction StudySM.
While the study focused on banks, I feel the lessons from this study apply equally to accounting, law, and other professional service firms.
The study found that small business banking satisfaction is highest among customers who believe they have a collaborative relationship or partnership with their bank. Key building blocks these relationships include:
- assignment of an account manager who fully understands the customer’s business
- ongoing proactive communication
- easy and convenient access to the bank through branch and online channels.
Do these sound familiar? Numerous studies and articles have pointed out that the top reasons customers leave professional firms include:
- After the firm is hired, junior staff are assigned to the account and the partner(s) is never heard from again
- The firm fails to proactively bring ideas and unsolicited advice to the customer
- Partners are hard to get in touch with or inaccessible
- Customers feel the firm doesn’t care about them
In the press release about the study, Michael Beird, director of banking services at J.D. Power and Associates, pointed out the relationship of unexpected fees to customer satisfaction.
“While customers don’t expect to receive services for free, they become aggravated when blindsided by unexpected charges or by fees that aren’t appropriate to their situation,” said Beird.
“Satisfaction is notably higher when customers understand their financial institution’s policies and procedures for charging fees. Therefore, it is crucial that when a new account is opened, banks make sure they understand the small business owner’s needs, provide them with the most suitable product and effectively communicate the fees involved.”
Does your firm get off on the “right foot” with new customers by properly setting expectations at the beginning of the relationship? Beginning the relationship with an orientation meeting, complete with a new customer kit that clearly outlines the responsibilities and expectations of everyone involved, can help head off misunderstandings and customer relationship problems.
The study also showed that customer loyalty to their bank continues to decline. An appalling low 19 percent of customers in 2010 saying they “definitely will” reuse their financial institution for additional business products. I’m sure most bankers feel they have relationships with their customers, so before you say “that can’t happen to me” I encourage you to take a look at all of your customer touch points and make sure you are not repeating the same customer service mistakes pointed out by this study. You can try to implement customer service systems like the ones from Salesforce.
