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Improving the Small Business Customer Experience

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It’s a common perception that small businesses think all banks are alike. They don’t. Their experience with, and perceptions of, different banks vary widely. And that means that the fortunes of banks serving SBOs can also vary widely.

To help you improve SBO customer experience — and as a result, acquisition, retention and revenue — we recently surveyed 500 U.S. small business principals. The findings are instructive; there are some great learnings on what SBOs want from their bank – and how they feel about your company.

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Improving the Small Business Customer Experience

  1. 1. Improving the Small Business Customer Experience August 16, 2018
  2. 2. 2 ORIGINAL RESEARCH  CUSTOM CONTENT INCREASING SALES TO SMBS
  3. 3. ORIGINAL RESEARCH  CUSTOM CONTENT INCREASING SALES TO SMBS 3 • Qualitative • Live / online focus groups • Workshops • In-depth interviews • Quantitative • Custom online • SMB Pulse omnibus • New SMB Finance, HR, IT and Marketing Pulses Methods • Message / positioning testing • Attitudes and usage • Brand awareness / perception • Buyer identification • Competitive perceptions • Customer satisfaction / loyalty • Market segmentation • Media behaviors / preferences • New product testing • Persona / buyer journey • Purchase intent, behaviors, channels and preferences Topics Internal: Actionable product / marketing insight External: PR / social / content / events / collateral OutputsOutputs
  4. 4. 4 ORIGINAL RESEARCH  CUSTOM CONTENT INCREASING SALES TO SMBS Video Email Newsletters Checklists / Worksheets Case StudiesArticles Blog Posts White Papers Podcasts eBooks PR Surveys Social Media Handbooks / Guides Webcasts Slideshows Infographics Interactive Tools • Survey data • Creative brief • Editorial calendar • Content development • Content audit • Analytics • New SMB Content Marketing Roundtable Contribution • Expert • Actionable • Relevant • Easy to understand • Professional • Brand-building • Custom Principles Direct Mail Event Collateral Brochures / Sell Sheets Custom Pubs
  5. 5. 5 WHAT WE’LL COVER Individual bank NPS Banking relationship attributes Trust in institutions, industries, and leading banks Role of content
  6. 6. 6 METHODOLOGY 1 2 HOW WHO Online survey via the Bredin.com/SMBPulse 500 principals of U.S. companies with ≤500 employees (4% +/- CI) 250 VSB <20 employees (97.7% weighting) 150 SB 20-99 employees (2.0% weighting) 100 MB 100-500 employees (0.3% weighting) 3 WHEN June 18-27, 2018 Charts present weighted data unless noted
  7. 7. 48% 52% Female Male Professional Services 27% Computer Software/Internet 6% Financial Services/Accounting/Bookkeeping 5% Advertising/Consulting/Design/Marketing Services 3% Computer Services/Consulting 3% Medical 3% Architect/Engineering 2% Banking/Insurance/Mortgage 2% Legal 2% Retail/Wholesale 29% Retail 15% Wholesale 6% Real Estate 4% Food/Beverage/Restaurants 3% Entertainment/Recreation 1% Travel/Hotel/Hospitality 1% Manufacturing 28% Construction/Mining/Contracting/Electrical/Landscape/Plumbing/etc. 14% Manufacturing/Transportation & Warehousing 5% Computer Hardware/Electronic Equipment 3% Automotive 2% Telecommunications 2% Pharmaceutical/Medical Devices/Biotechnology 1% Energy/Utilities 1% Other 15% Personal Services 12% Education/Training 4% Title 45% 29% 26% 50+ 35-49 18-34 Age Gender RESPONDENT CHARACTERISTICS 7 n=500 100% Principal (e.g., owner, founder, partner, CEO, president, etc.) Industry 44% 15% 23% 17% Less than $500k $500k to $999k $1M to $4.9M $5M+ 2017 Revenue Millennial Gen X Boomer
  8. 8. 14% 29% 27% 30% Less than 4 years 4 to 9 years 10 to 19 years 20 or more years 2% 4% 23% 25% 36% 9% Down more than 10% Down by less than 10% Same as 2017 Up by less than 10% Up 10% to 100% Up by more than 100% Years in Business Geography 2018 Revenue Outlook Northeast 20% South 37% West 23% Midwest 21% RESPONDENT CHARACTERISTICS 8 17% 43% 40% Population Density n=500 50% 30% 20% 1 to 19 Employees 20 to 99 Employees 100 to 500 Employees Headcount
  9. 9. 9 EXECUTIVE SUMMARY • SBOs trust their peers much more than other institutions • Among their vendors, SBOs trust their CPAs the most • In financial services, SBOs trust community banks the most • Low rates and fees are extremely important to SBOs, as is not making mistakes • Advice-based content can boost acquisition, retention and upsell • SBOs look to their bank for advice on financial management, followed by law and taxes
  10. 10. DETAILED FINDINGS
  11. 11. Respondent Age SBO optimism increases with company size, and decreases with respondent and company age 11 REVENUE OUTLOOK Revenue Outlook Company Age 50% 59% 77% 83% 50% 41% 23% 17% Less than 4 years 4 to 9 years 10 to 19 years 20 years or more 39% 77% 77% 61% 23% 23% 18-34 35-49 50+ n=500 How do you expect your 2018 revenue to compare to 2017? No / Slow Growth Fast / Hypergrowth Company Size 71% 47% 47% 33%29% 53% 53% 67% Less than $500K $500K to $999K $1M to $4.9M $5M or more2% 4% 23% 25% 36% 9% Down more than 10% Down by less than 10% Same as 2017 Up by less than 10% Up 10% to 100% Up by more than 100%
  12. 12. 16% 17% 18% 20% 22% 23% 27% 28% 31% 32% 34% 57% The U.S. Congress The Federal government Social media The legal system Large businesses Your state government Your local city or town government Traditional media Not-for-profits The medical system Search engines Other small businesses 12 n=500 % rated 4 or 5 On a scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these institutions INSTITUTIONAL TRUST SBOs trust their peers the most – by far Revenue Less than $500K $500K to $999K $1M to $4.9M $5M or more 54% 69% 72% 73% 33% 49% 57% 60% 36% 44% 46% 66% 33% 52% 60% 59% 31% 43% 46% 56% 28% 48% 45% 63% 26% 43% 41% 53% 24% 39% 48% 62% 21% 44% 43% 55% 19% 39% 43% 52% 19% 43% 37% 49% 17% 42% 41% 47%
  13. 13. 9% 11% 11% 18% 18% 19% 23% 27% 28% 30% 28% 54% 20% 18% 24% 20% 24% 16% 26% 18% 30% 28% 42% 55% 44% 47% 41% 29% 38% 53% 47% 47% 50% 47% 53% 76% The U.S. Congress The Federal government Social media The legal system Large businesses Your state government Your local city or town government Traditional media Not-for-profits The medical system Search engines Other small businesses 18-34 35-49 50+ 13 n=500 % rated 4 or 5 On a scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these institutions INSTITUTIONAL TRUST: RESPONDENT AGE Millennials trust every institution much more than their older peers do
  14. 14. 14 n=500 % rated 4 or 5 On the same scale, please rate your trust in each of these industries INDUSTRY TRUST 18% 21% 25% 26% 28% 30% 30% 31% 32% 33% 35% 35% 36% 37% 37% 38% 39% 44% 48% 50% 53% 54% 63% Alternative / online lenders Social media companies Marketing services Insurance companies Employee recruiting services / temp agencies Mutual fund companies Retirement plan providers Credit card companies Internet access providers / website hosts National / regional banks Business travel: Airlines, hotels, rental car companies Local technology solution providers Local / long distance phone company/ies Payroll service providers Cellphone manufacturers Software companies Cellphone service providers Technology hardware manufacturers Credit unions Local / community banks Office supply stores / print centers Overnight package delivery companies Your CPA SBOs trust their CPA the most Revenue Less than $500K $500K to $999K $1M to $4.9M $5M or more 58% 75% 74% 77% 56% 57% 70% 71% 51% 61% 68% 74% 47% 66% 67% 76% 47% 66% 67% 71% 44% 62% 62% 73% 39% 64% 57% 63% 38% 56% 64% 62% 38% 56% 59% 65% 33% 64% 68% 73% 37% 58% 54% 65% 35% 62% 54% 65% 37% 56% 59% 62% 30% 64% 53% 63% 33% 49% 58% 69% 29% 53% 56% 62% 31% 48% 56% 69% 30% 49% 53% 66% 29% 53% 53% 64% 27% 53% 50% 70% 24% 49% 47% 62% 24% 45% 41% 59% 20% 47% 43% 53%
  15. 15. 15 n=500 % rated 4 or 5 On the same scale, please rate your trust in each of these industries INDUSTRY TRUST: RESPONDENT AGE 31% 35% 30% 33% 34% 35% 43% 51% 53% 54% 55% 66% 37% 28% 43% 39% 43% 38% 43% 41% 43% 47% 51% 55% 53% 50% 59% 53% 53% 56% 50% 41% 44% 58% 53% 59% Local technology solution providers Local / long distance phone company/ies Payroll service providers Cellphone manufacturers Software companies Cellphone service providers Technology hardware manufacturers Credit unions Local / community banks Office supply stores / print centers Overnight package delivery companies Your CPA 18-34 35-49 50+ Millennials are generally the most trusting generation Boomers are more trusting of local / community banks and credit unions than are Millennials and Gen X
  16. 16. 16 n=500 % rated 4 or 5 On the same scale, please rate your trust in each of these industries INDUSTRY TRUST: RESPONDENT AGE (CONTINUED) 11% 15% 19% 22% 21% 27% 27% 30% 28% 30% 31% 28% 22% 32% 28% 35% 32% 35% 30% 39% 35% 39% 36% 53% 41% 41% 53% 41% 38% 33% 41% 41% 47% Alternative / online lenders Social media companies Marketing services Insurance companies Employee recruiting services / temp agencies Mutual fund companies Retirement plan providers Credit card companies Internet access providers / website hosts National / regional banks Business travel: Airlines, hotels, rental car companies 18-34 35-49 50+ In most industries, trust decreases with age Millennials are more trusting of national / regional banks and alternative lenders than are Boomers and Gen X
  17. 17. 17 n=500 % rated 4 or 5 On the same scale, please rate your trust in each of these industries 18% 33% 48% 50% Alternative / online lenders National / regional banks Credit unions Local / community banks FINANCIAL SERVICES INDUSTRY TRUST: GEOGRAPHY Midwesterners have the most trust in banks Geography West Midwest South Northeast 45% 62% 45% 51% 50% 56% 44% 42% 23% 46% 32% 31% 7% 18% 21% 26%
  18. 18. Bank of America has the largest market share 18 PRIMARY BUSINESS BANK n=500 (UNWEIGHTED) Which of these is your primary business bank? 89 1 1 2 2 4 4 5 5 6 7 7 7 9 11 12 14 14 22 23 50 64 141 Other Union Bank Santander Bank Comerica Key Bank BBVA Compass Bank BMO Harris Bank Bank of the West Huntington Bank Fifth Third Bank Citizens Bank M&T Bank TD Bank Regions Bank PNC Bank BB&T Citibank SunTrust Bank Capital One U.S. Bank Chase Bank Wells Fargo Bank of America
  19. 19. 19 n=500 % rated 4 or 5 On a scale of 1 (not at all aware) to 5 (very aware), please rate your awareness of (or familiarity with) each of these financial services firms BANK AWARENESS 8% 9% 9% 11% 11% 11% 11% 13% 13% 14% 15% 15% 16% 16% 17% 17% 17% 18% 20% 23% 27% 27% 32% 46% 51% 51% 54% 55% Silicon Valley Bank People's United Bank New York Community Bank First Republic Bank BMO BBVA Compass Bank Comerica Huntington Bank Union Bank M&T Bank Bank of the West Santander Bank BB&T Fifth Third Bank Key Bank Regions Bank HSBC Bank Citizens Bank SunTrust Bank TD Bank PNC Bank American Express U.S. Bank Citibank Capital One Wells Fargo Bank of America Chase Bank Growth Outlook No / slow growth Fast / hypergrowth 53% 60% 52% 60% 49% 55% 47% 60% 43% 53% 29% 40% 26% 30% 22% 37% 21% 28% 20% 21% 16% 25% 15% 22% 15% 22% 12% 27% 14% 22% 14% 21% 12% 23% 12% 22% 11% 23% 10% 20% 13% 13% 9% 17% 10% 16% 9% 17% 9% 16% 6% 19% 6% 16% 6% 14% Chase and Bank of America have the highest awareness 22% of Millennials are very aware of American Express, versus 8% of Boomers Only 11% of <$500K SBOs are aware of SVB, versus 34% of >$500K SBOs Awareness of smaller / regional banks increases with SBO size
  20. 20. 39% 45% 45% 43% 39% 29% 31% 32% 32% 31% 29% 33% 34% 40% 25% 36% 26% 31% 34% 36% 33% 48% 35% 40% 47% 22% 34% 44% Silicon Valley Bank People's United Bank New York Community Bank First Republic Bank BMO BBVA Compass Bank Comerica Huntington Bank Union Bank M&T Bank Bank of the West Santander Bank BB&T Fifth Third Bank Key Bank Regions Bank HSBC Bank Citizens Bank SunTrust Bank TD Bank PNC Bank American Express U.S. Bank Citibank Capital One Wells Fargo Bank of America Chase Bank 20 n=varies (for all brands rated 3, 4 or 5 for awareness) On a scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these financial services firms % rated 4 or 5 Using the scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these financial services firms BANK TRUST AmEx has the highest overall trust rating; customer trust varies widely Revenue Customer’s Bank Less than $500K $500K to $999K $1M to $4.9M $5M or more 44% 57% 55% 74% 78% 35% 53% 59% 65% 71% 23% 58% 45% 58% 66% 46% 68% 56% 61% 77% 41% 63% 57% 57% 62% 35% 57% 52% 58% 73% 48% 66% 55% 71% - 37% 53% 51% 58% 55% 35% 58% 47% 57% 50% 34% 58% 54% 52% 71% 38% 52% 49% 56% 43% 26% 52% 49% 62% - 32% 56% 56% 52% 78% 28% 49% 50% 53% - 36% 58% 56% 65% 67% 33% 59% 49% 58% 67% 35% 62% 50% 62% - 31% 59% 43% 61% 40% 35% 59% 42% 60% 43% 35% 64% 52% 56% - 39% 46% 54% 61% 100% 35% 53% 51% 60% - 29% 60% 50% 58% - 45% 58% 52% 70% - 43% 58% 62% 63% - 44% 66% 60% 66% - 50% 64% 51% 59% - 37% 64% 55% 63% -
  21. 21. American Express Bank of America Bank of the West BB&T BBVA Compass Bank BMO Capital One Chase Bank Citibank Citizens Bank Comerica Fifth Third BankFirst Republic Bank HSBC Bank Huntington Bank Key Bank M&T Bank New York Community BankPeople's United Bank PNC Bank Regions Bank Santander Bank Silicon Valley Bank SunTrust Bank TD Bank U.S. Bank Union Bank Wells Fargo 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 21 n=500 (top-two box) Horizontal axis: On a scale of 1 (not at all aware) to 5 (very aware), please rate your awareness of (or familiarity with) each of these financial services firms Vertical axis: (for all brands rated 3, 4 or 5 for awareness) On a scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these financial services firms AWARENESS VS. TRUST % rated ‘awareness’ 4 or 5 %rated‘trust’4or5(Iffamiliar3,4or5) Awareness is not generally correlated with trust
  22. 22. Chase Bank Bank of America Wells Fargo Capital One Citibank U.S. Bank American Express PNC Bank TD Bank SunTrust Bank Citizens Bank HSBC Bank Regions Bank Key Bank Fifth Third Bank BB&T Santander Bank Bank of the West M&T Bank Union Bank Huntington Bank Comerica BBVA Compass Bank BMO First Republic Bank New York Community Bank People's United Bank Silicon Valley Bank 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 22 n=69 (top-two box) Horizontal axis: On a scale of 1 (not at all aware) to 5 (very aware), please rate your awareness of (or familiarity with) each of these financial services firms Vertical axis: (for all brands rated 3, 4 or 5 for awareness) On a scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these financial services firms AWARENESS VS. TRUST: MILLENNIALS % rated ‘awareness’ 4 or 5 %rated‘trust’4or5(Iffamiliar3,4or5) Millennials are generally more aware of, and trusting in, all bank brands…
  23. 23. Chase Bank Bank of America Wells Fargo Capital One Citibank U.S. Bank American Express PNC Bank TD Bank SunTrust Bank Citizens Bank HSBC Bank Regions Bank Key Bank Fifth Third BankBB&T Santander Bank Bank of the West M&T Bank Union Bank Huntington Bank Comerica BBVA Compass Bank BMO First Republic Bank New York Community Bank People's United Bank Silicon Valley Bank 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 23 n=98 (top-two box) Horizontal axis: On a scale of 1 (not at all aware) to 5 (very aware), please rate your awareness of (or familiarity with) each of these financial services firms Vertical axis: (for all brands rated 3, 4 or 5 for awareness) On a scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these financial services firms AWARENESS VS. TRUST: GEN X % rated ‘awareness’ 4 or 5 %rated‘trust’4or5(Iffamiliar3,4or5) …Gen Xers, much less so…
  24. 24. Chase Bank Bank of America Wells Fargo Capital One Citibank U.S. Bank American Express PNC Bank TD Bank SunTrust Bank Citizens Bank HSBC Bank Regions Bank Key Bank Fifth Third Bank BB&T Santander Bank Bank of the West M&T Bank Union Bank Huntington Bank Comerica BBVA Compass Bank BMO First Republic… New York Community Bank People's United Bank Silicon Valley Bank 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 24 n=334 (top-two box) Horizontal axis: On a scale of 1 (not at all aware) to 5 (very aware), please rate your awareness of (or familiarity with) each of these financial services firms Vertical axis: (for all brands rated 3, 4 or 5 for awareness) On a scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these financial services firms AWARENESS VS. TRUST: BOOMERS % rated ‘awareness’ 4 or 5 %rated‘trust’4or5(Iffamiliar3,4or5) ...and Boomers, even less so.
  25. 25. n=500 Please select all the words that you would use to describe your bank: 17% 21% 25% 26% 31% 42% 44% 45% 48% 49% 54% 55% Conservative Progressive Innovative Committed to the community Cares for me / my business Helpful Local Secure Friendly / approachable Trustworthy Convenient Reliable 25 WORDS TO DESCRIBE YOUR BANK SBOs are most likely to describe their bank as “reliable” Customer’s Bank 44% 70% 33% 56% 48% 58% 44% 54% 42% 66% 41% 54% 43% 40% 41% 52% 38% 54% 33% 48% 30% 36% 31% 43% 42% 46% 36% 42% 32% 32% 27% 33% 20% 20% 22% 31% 38% 46% 27% 29% 26% 30% 34% 21% 25% 12% 19% 22% n=141 n=50 n=64 All other n=245
  26. 26. 2% 2% 1% 1% 4% 8% 11% 18% 20% 32% 1 2 3 4 5 6 7 8 9 10 Half of SBOs would recommend their bank 26 AGGREGATE BANK NPS n=500 (UNWEIGHTED) On a scale of 1 (not at all likely) to 10 (extremely likely), how likely are you to recommend your primary business bank to a friend or colleague? Detractor (19%) Promoter (52%) Passive (29%) SBOs with >$5M in annual revenue (59%) are more likely to recommend their bank than SBOs with <$500K (48%) Aggregate Bank Industry NPS = 33 NPS = (total % Promoters) – (total % Detractors)
  27. 27. Fifth Third Bank has the highest NPS 27 INDIVIDUAL BANK NPS (UNWEIGHTED) On a scale of 1 (not at all likely) to 10 (extremely likely), how likely are you to recommend your primary business bank to a friend or colleague? Note: small sample for some banks. -43 -14 0 7 14 18 23 25 27 33 39 40 51 52 56 57 67 Citizens Bank (n=7) M&T Bank (n=7) Bank of the West (n=5) Citibank (n=14) TD Bank (n=7) PNC Bank (n=11) Bank of America (n=141) Wells Fargo (n=64) Capital One (n=22) BB&T (n=12) U.S. Bank (n=23) Huntington Bank (n=5) All other (n=103) Chase Bank (n=50) Regions Bank (n=9) SunTrust Bank (n=14) Fifth Third Bank (n=6)
  28. 28. 28 RETENTION OUTLOOK 90% of SBOs plan to remain with their bank for at least the next five years Retention 28% 8% 12% 12% 16% 16% 16% 24% 32% 32% 44% 60% Other Offer / improve business / financial management advice Faster credit / loan approval Support local charities / organizations Improve mobile banking app Add new products / services Open longer hours Improve online banking Better access to a business banker Open a more convenient location Improve customer service Lower rates and fees 1% 7% 8% 10% 12% 13% 18% 22% 26% 39% 45% 46% 54% Other Supports local charities / organizations Fast credit / loan approval Offers good online business / financial management advice Access to / relationship with a business banker Good mobile banking app Offers a wide range of products / services Easier to remain a customer than change banks Convenient hours Low rates / fees Good online banking Convenient location(s) Good customer service (if no) Please select the top three things your bank could do to increase the likelihood of you remaining a customer: (if yes) Please select the top three reasons you plan to remain a customer at your bank: n=450 n=50 SBOs are generally likely to remain with their current bank n=500 Do you plan to stay as a customer of your bank for the next five years? SMBs <4 years old are more likely to defect than older businesses are
  29. 29. 29 n=500 % rated 4 or 5 On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of dealing with your primary business bank: THE BANKING RELATIONSHIP: WHAT’S IMPORTANT 27% 33% 35% 36% 37% 38% 39% 39% 43% 44% 49% 49% 51% 63% 64% 68% 73% 77% Online advice, i.e. articles and tips on financial management Mobile banking app Large branch network Quick approval of loan requests Access to a business banker Branches open long hours Broad product line Large ATM network Products and services tailored to my industry Innovative Phone support Products and services tailored to businesses of my size Demonstrates that it understands the needs of my business Convenience / location of nearby bank branches Online banking Customer service / quick problem resolution Low rates / fees Keeps my money secure “Keeps my money secure” is the most important attribute Revenue Less than $500K $500K to $999K $1M to $4.9M $5M or more 74% 81% 82% 85% 72% 75% 80% 74% 66% 74% 73% 79% 64% 70% 73% 77% 64% 69% 63% 72% 48% 69% 69% 78% 46% 71% 66% 70% 48% 61% 59% 69% 43% 62% 63% 67% 41% 64% 65% 65% 39% 51% 59% 66% 38% 52% 64% 64% 41% 60% 55% 60% 35% 61% 57% 76% 35% 64% 59% 62% 35% 60% 53% 60% 37% 58% 55% 63% 30% 49% 50% 55%
  30. 30. 30 n=500 % rated 4 or 5 On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your bank performs on each of these aspects: THE BANKING RELATIONSHIP: BANK PERFORMANCE 35% 44% 47% 36% 43% 46% 49% 52% 40% 51% 58% 45% 46% 66% 68% 62% 53% 73% Online advice, i.e. articles and tips on financial management Mobile banking app Large branch network Quick approval of loan requests Access to a business banker Branches open long hours Broad product line Large ATM network Products and services tailored to my industry Innovative Phone support Products and services tailored to businesses of my size Demonstrates that it understands the needs of my business Convenience / location of nearby bank branches Online banking Customer service / quick problem resolution Low rates / fees Keeps my money secure In aggregate, SBOs rank banks highest on “Keeps my money secure” Revenue Less than $500K $500K to $999K $1M to $4.9M $5M or more 69% 78% 76% 79% 52% 70% 59% 70% 60% 73% 63% 76% 69% 77% 75% 74% 62% 73% 70% 71% 44% 66% 61% 76% 43% 68% 63% 72% 56% 70% 63% 74% 48% 71% 71% 69% 39% 66% 53% 71% 48% 62% 68% 71% 45% 73% 68% 79% 44% 66% 58% 71% 42% 64% 65% 73% 35% 70% 62% 73% 47% 66% 66% 67% 45% 66% 65% 65% 34% 62% 56% 63%
  31. 31. 31 n=500 (Top-two box) Horizontal axis: On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of dealing with your primary business bank Vertical axis: On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your bank performs on each of these aspects IMPORTANCE VS. PERFORMANCE Access to a business banker Branches open long hours Broad product line Convenience / location of nearby bank branches Customer service / quick problem resolutionDemonstrates that it understands the needs of my business Innovative Keeps my money secure Large ATM network Large branch network Low rates / fees Mobile banking app Online advice, i.e. articles and tips on financial management Online banking Phone support Products and services tailored to businesses of my size Products and services tailored to my industry Quick approval of loan requests 20% 30% 40% 50% 60% 70% 80% 90% 20% 30% 40% 50% 60% 70% 80% 90% Importance outweighs performance % rated ‘Importance’ 4 or 5 %rated‘Performance’4or5 Banks ‘overperform’ most on branch network, and ‘underperform’ most on low rates / fees… Performance outweighs importance
  32. 32. 32 n=221 (Top-two box) Horizontal axis: On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of dealing with your primary business bank Vertical axis: On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your bank performs on each of these aspects IMPORTANCE VS. PERFORMANCE: <$500K Keeps my money secure Low rates / fees Customer service / quick problem resolution Online banking Convenience / location of nearby bank branches Demonstrates that it understands the needs of my business Products and services tailored to businesses of my size Phone support Innovative Products and services tailored to my industry Large ATM network Broad product line Branches open long hours Access to a business banker Quick approval of loan requests Large branch network Mobile banking app Online advice, i.e. articles and tips on financial management 20% 30% 40% 50% 60% 70% 80% 90% 20% 30% 40% 50% 60% 70% 80% 90% Performance outweighs importance Importance outweighs performance % rated ‘Importance’ 4 or 5 %rated‘Performance’4or5 This holds true for the smallest businesses
  33. 33. 33 n=77 (Top-two box) Horizontal axis: On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of dealing with your primary business bank Vertical axis: On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your bank performs on each of these aspects IMPORTANCE VS. PERFORMANCE: $500K-$999K Keeps my money secure Low rates / fees Customer service / quick problem resolution Online banking Convenience / location of nearby bank branches Demonstrates that it understands the needs of my business Products and services tailored to businesses of my size Phone support Innovative Products and services tailored to my industry Large ATM network Broad product line Branches open long hours Access to a business banker Quick approval of loan requests Large branch network Mobile banking app Online advice, i.e. articles and tips on financial management 20% 30% 40% 50% 60% 70% 80% 90% 20% 30% 40% 50% 60% 70% 80% 90% Importance outweighs performance % rated ‘Importance’ 4 or 5 %rated‘Performance’4or5 Larger SBOs see banks as overperforming on most aspects Performance outweighs importance
  34. 34. 34 n=116 (Top-two box) Horizontal axis: On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of dealing with your primary business bank Vertical axis: On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your bank performs on each of these aspects IMPORTANCE VS. PERFORMANCE: $1M-$4.9M Keeps my money secure Low rates / fees Customer service / quick problem resolution Online banking Convenience / location of nearby bank branches Demonstrates that it understands the needs of my business Products and services tailored to businesses of my size Phone support Innovative Products and services tailored to my industry Large ATM network Broad product line Branches open long hours Access to a business banker Quick approval of loan requests Large branch network Mobile banking app Online advice, i.e. articles and tips on financial management 20% 30% 40% 50% 60% 70% 80% 90% 20% 30% 40% 50% 60% 70% 80% 90% Importance outweighs performance % rated ‘Importance’ 4 or 5 %rated‘Performance’4or5 Mid-tier SBOs see the biggest “performance gap” on rates and fees Performance outweighs importance
  35. 35. Keeps my money secure Low rates / fees Customer service / quick problem resolution Online banking Convenience / location of nearby bank branches Demonstrates that it understands the needs of my business Products and services tailored to businesses of my size Phone support Innovative Products and services tailored to my industry Large ATM network Broad product line Branches open long hours Access to a business banker Quick approval of loan requests Large branch network Mobile banking app Online advice, i.e. articles and tips on financial management 20% 30% 40% 50% 60% 70% 80% 90% 20% 30% 40% 50% 60% 70% 80% 90% 35 n=86 (Top-two box) Horizontal axis: On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of dealing with your primary business bank Vertical axis: On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your bank performs on each of these aspects IMPORTANCE VS. PERFORMANCE: $5M+ Importance outweighs performance % rated ‘Importance’ 4 or 5 %rated‘Performance’4or5 The largest SBOs see the biggest “performance gap” on “broad product line” Performance outweighs importance
  36. 36. 36 n=500 % rated 4 or 5 Please rate each of these statements on a scale of 1 (strongly disagree) to 5 (strongly agree) 13% 15% 15% 18% 28% 29% 30% 31% 32% 35% 36% 44% 50% 52% 52% 60% 61% 61% 64% 68% 71% 73% 78% I am likely to switch banks within the next 12 months In five years, I won't need a bank at all I would rather go to the dentist than my bank branch I would be just as happy to do all my banking with a company like Google or Apple Financial services innovation will come from outside the banking industry In five years, the way I do my banking / financial transactions will be totally different My bank doesn't offer anything different from any other bank It is important to that my bank provides business / financial management advice I would happily get a loan elsewhere if I got faster approval or better terms I value data that my bank provides from surveys of businesses like mine I can't imagine a world without my bank It is important to me that my bank stands for something, like supporting the community or the environment I feel proud to be a customer of my bank My bank is the perfect bank for companies like mine It is important to me that my bank is innovative I can always trust my bank My bank always delivers what it promises If I have a problem, I can always count on my bank to reach a fair and satisfactory resolution I would recommend my bank to peers My bank always treats me fairly My bank always treats customers with respect I am satisfied with my bank It is important to me that my bank does not make mistakes Advisory content is twice as important to SBOs with >$5M in revenue (30%) as those with <$500k (15%) 46% of slow-growth SBOs ‘strongly agree’ that they’re satisfied with their bank, versus 26% of hypergrowth SBOs Larger SBOs are most likely to switch their bank in the next five years: 28% of those with 100-500 employees strongly agree BANK RELATIONSHIP ATTRIBUTES SBOs are most concerned that their bank not make mistakes The importance of every attribute increases with revenue
  37. 37. The SBOs who have downloaded their bank’s mobile app find it useful… 37 MOBILE APP 92% of SBOs that downloaded the app use it 97% of app users are satisfied n=210 n=194 Do you use your bank's mobile app? Are you satisfied with your bank's mobile app? 79% of Millennials have downloaded their bank’s app, versus 29% of Boomers 42% - Yes 58% - No I downloaded my bank's mobile app: n=500 n=500 46% of hypergrowth SBOs say their bank’s mobile app is extremely important, compared to 29% of fast growth, 21% of slow growth and 12% of no growth
  38. 38. …the SBOs that attend bank events fund them valuable… 38 BANK-SPONSORED EVENTS 85% of event attendees say it was valuable n=70 14% of SBOs have attended a bank- sponsored event in the last year n=500 I have attended an event sponsored by my bank in the past 12 months: Was the event your bank sponsored valuable? 24% of urban SBOs have attended a bank- sponsored event in the last year, versus 13% of suburban SBOs and 4% of rural SBOs 46% of Millennial SBOs have attended a bank event in the last year, versus 18% of Gen X and 6% of Boomers YesNo Larger SBOs (>$500K+; 92%) find bank events more valuable than do smaller SBOs (<$500K; 81%)
  39. 39. …and the SBOs who read your advisory content find it helpful 39 93% say the content was useful 92% say it made them think more favorably of their bank 91% say it made them more likely to remain a customer 89% say it makes them more likely to use additional bank services n=161 32% - Yes 68% - No n=500 Have you read business and financial management advice from your bank? MARKETING CONTENT: VALUE Readership is higher among younger SBOs, with 61% of Millennials saying they have read content from a bank, versus 37% of Gen X and 25% of Boomers. 95% of Boomers that have read content from their bank say it has made them more likely to use an additional product, versus 81% of Millennials
  40. 40. SBOs look to banks for advice most on financial and legal issues 40 n=500 % rated 4 or 5 Please rank-order these topics on which you would like your bank to provide business and financial management advice from most important (top) to least important (bottom): 6% 9% 18% 21% 22% 23% 24% 36% 42% Import / export Human resources Sales and marketing Technology Leadership and management Industry news and trends Operations Law and taxes Financial planning and management 20% of Millennials rank import / export as a top-two topic, versus only 2% of Boomers SBOs in the Northeast are particularly interested in financial management. 60% rank it in the top two, versus 42% in the West, 37% in the Midwest and 32% in the South 36% of SBOs with <20 employees rank law and taxes as a top-two topic, versus 18% of SBOs with 100- 500 employees MARKETING CONTENT: TOPICS Respondent Age 18-34 35-49 50+ 28% 54% 41% 35% 35% 36% 4% 19% 30% 30% 7% 27% 16% 21% 23% 27% 27% 18% 24% 21% 15% 15% 13% 7% 21% 4% 4%
  41. 41. 4% 4% 4% 5% 6% 8% 9% 9% 10% 10% 12% 16% 17% 21% 21% 44% Audio podcast Twitter Blog post LinkedIn posts Facebook posts Infographic Peer forum or discussion… Video Webinar / webcast Case study eBook / guide / handbook Analyst report Research report White paper Article Email newsletter 41 n=500 % ranked 1st or 2nd Please rank-order the formats in which you would like your bank to provide business and financial management advice from most preferred (top) to least preferred (bottom) Revenue Less than $500K $500K to $999K $1M to $4.9M $5M or more 43% 25% 28% 20% 24% 9% 17% 13% 21% 19% 9% 9% 14% 21% 13% 21% 13% 17% 20% 15% 10% 12% 13% 21% 12% 10% 10% 7% 12% 16% 16% 6% 8% 12% 21% 10% 9% 10% 10% 17% 7% 6% 9% 14% 9% 13% 8% 10% 5% 8% 9% 7% 5% 5% 6% 13% 4% 12% 3% 9% 4% 5% 9% 7% MARKETING CONTENT: FORMATS SBOs most want an email newsletter from their bank SBOs with revenue of $5M+ are three times as likely to rank ‘eBook / guide / handbook’ as their top format (12%) as SBOs with revenue of less than $500K (4%) and twice as likely as SBOs w/revenue of $500k to $999K (6%) 18% of Millennials rank Facebook posts as a top-two format, versus 3% of Boomers
  42. 42. 42 n=500 % ranked 1st or 2nd Please rank-order the formats in which you would like your bank to provide business and financial management advice from most preferred (top) to least preferred (bottom) MARKETING CONTENT: FORMATS: RESPONDENT AGE Gen X and Boomers prefer email newsletters; Millennial preferences are more varied 2% 4% 5% 5% 3% 8% 6% 5% 9% 8% 14% 17% 19% 23% 24% 50% 6% 4% 0% 2% 8% 9% 13% 19% 15% 12% 6% 13% 13% 24% 13% 43% 9% 6% 9% 12% 18% 9% 18% 16% 7% 21% 9% 15% 12% 6% 18% 15% Audio podcast Twitter Blog post LinkedIn posts Facebook posts Infographic Peer forum or discussion… Video Webinar / webcast Case study eBook / guide / handbook Analyst report Research report White paper Article Email newsletter 18-34 35-49 50+
  43. 43. 43 • Define your audience – e.g. by persona; customer vs. prospect o Version if possible • Provide a specific payoff – e.g. “Five tips to avoid fees” • Present relevant, actionable advice – e.g. interview-based SBO tips • Test subject lines, sender name and sender email address • Focus on financial management, followed by law and taxes • Provide an archive Optimizing your small business email newsletter performance EMAIL NEWSLETTER KEY SUCCESS FACTORS
  44. 44. 44 HOW BREDIN CAN HELP Stu Richards, CEO stu@bredin.com • Content strategy • Creative brief / ed cal Strategy • Original content development • Exclusive SBO focus Content • Product / go-to-market strategy • Persona / buyer journey • Original data for standout content and PR Research Increase small business insight and engagement
  45. 45. FIRMOGRAPHIC CROSSTABS Want to watch the original Fastcast? Watch it here. Want to find out how Bredin can help improve your small business customer experience? Email us at: info@bredin.com

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