Improving ‘Engagement’ with Tenured Business Banking Customers

Data from J.D. Power’s 2013 Small Business Banking Satisfaction Study finds that Product Offerings satisfaction declines significantly as a customer’s tenure with the bank increases. Customer perception of product-related communication (or lack thereof) is a key driver of the satisfaction differences noted across different customer segments.

Analysis of customer verbatim comments may indicate that banks are more focused on communicating with newer business customers, in an attempt to ensure satisfaction and ultimately increase loyalty and cross-sell potential. Conversely, longer-tenured customers may feel ‘forgotten’ as the level (or quality) of communication received from their bank decreases over time.

US SBB Account Initiation, PO & Credit services_Final_11.6

It is important for financial institutions to stay in-touch with their business customers, particularly those with longer tenures, as those customers appear to be more critical of their bank’s attempts to communicate with them. And it is especially important to focus on engaging tenured business banking customers that DO NOT have an assigned account/relationship manager.

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2 comments to Improving ‘Engagement’ with Tenured Business Banking Customers

  • James Slater

    Within NatWest, we have used CSS and, more recently, NPS surveys for many years to assess the level of satisfaction and advocacy of our customers. Over time, we have learned that the more contact we have with a customer, the more likely we are to receive a positive score/favourable response. Over time, as tenure increases, we should have even more opportunities to have more engagement with customers. Should these findings from JD Power have any bearing on our customers, then this can only reinforce the need for us to maintain regular quality & meaningful contact. We ignore our established (long tenure) customers at our peril.

  • Paul Houlahan

    Its an interesting observation that JD Powers makes that Service Providers, including banks, have culturally geared themselves towards lavishing their new customers over the valued “tenured” customers.

    I guess this is a dangerous conclusion to draw that all banks operate in this fashion. That said we know from the Mori research that the more frequently we communicate with our customers this invariably drives up engagement and improves Net Promoter Scores (NPS)

    Its down to you but get talking!

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