London, 9thMay 2005. A sizeable proportion of small and
middle-sized enterprises (SMEs) in Britain believes that the quality of
service provided by their main bank over the past 12 months has
improved, according to the findings of a survey published today by a
leading global provider of market information, TNS.
Some 17
per cent of SMEs claim that the quality of service they received from
their bank during 2004 had improved.? The TNS research also
reveals that some 70 per cent of SME customers would recommend their
bank (44 per cent ‘definitely recommend’, 26 per cent ‘probably
recommend’).? This is an improvement of three percentage points on
the findings for 2002, when 67 per cent of respondents said they would
recommend their bank to another SME customer.?
At the
same time, the proportion of customers saying they are ‘very likely to
consider leaving their main bank’ increased by two per cent in 2004
compared with the previous year.?? However, over 2004the
proportion of SME customers actually switching banks in the last 12
months was three per cent, unchanged from 2003.? The main reasons
for switching banks were given as ‘poor service’ (32 per cent of
respondents),and ‘charges’ (26 per cent).? This represents an
improvement in service levels, but a change in priorities from 2003
when charges were cited by 38 per cent of respondents, and poor
service, 36 per cent.
“Quality of service has now overtaken
charges as the main reason for small businesses’ switching provider,”
said Rosemary Bayman, Managing Consultant of Financial &
Professional Services, TNS.? “However, providers are responding to
this by making service improvements, and this does appear to be feeding
through into perceptions.
“The key drivers of customer
retention in this market are accuracy and efficiency of service,
coupled with a good branch service and a good quality customer contact
who really understands the needs of the business.? The main
providers are now getting the basics right, but need to work more on
going the extra mile in terms of
empathy and flexibility,” Bayman added.
The
findings suggest that banks may be starting to turn around the low
point in customer satisfaction which they experienced during 2002 in
the wake of the findings of the Competition Commission, which
highlighted restricted choice for customers and high charges imposed by
banks.
“These findings should offer some encouragement to the
banks,” Bayman continued.? “Importantly, customers believe that
service levels are improving as banks do more to build customer loyalty
and reverse the pattern of poor customer service which has
characterised the financial services market for SMEs in the past.
However, this has
been coupledwith increased expectations as small
business customers take a more active role in the management of their
own finances, and expect a higher quality service as a result.?
“The
key question is, will the greater choice offered to small business
owners and their potentially greater expectations actually lead to an
increase in switching?? Certainly, banks can no longer rely on
apathy or inertia which has traditionally stopped customers looking
elsewhere for better deals,” Bayman concluded.? “The plus side for
the banks from this research is that ultimately, improved service
levels will lead to increased customer commitment and, in turn, higher
retention rates and the ability for banks to sell customers a wider
range of services in the future.”
The research was
undertaken by TNS Financial & Professional Services among a sample
of 4,253 small businesses (turnover of up to ?1 million) across Great
Britain in four waves during 2004. The research used a 25-minute
structured telephone interview with quotas imposed on company size and
region.?
About TNS Financial & Professional Services
With
over 25 full time executives, TNS Financial & Professional Services
is one of the leading providers of research and consultancy in the
financial arena, working with some of the UK’s leading financial and
professional institutions.?? Over the past 25 years, the
group has conducted a wide range of individually commissioned and
multi-client studies in retail and business banking, channels,
mortgages, life, pensions, investments, credit cards, general
insurance, tax, law, consultancy and other financial and professional
service markets.? With a combination of proprietary market data,
tailored research tools and professionals with depth and breadth of
experience in the financial sector, TNS Financial & Professional
Services provides clients with the insight to make business-critical
decisions with confidence.
About TNS
TNS is a
market information group. We are the world’s largest custom research
company and a leading provider of social and political polling. We are
also a major supplier of consumer panel, TV audience measurement and
media intelligence services. TNS operates a global network spanning 70
countries and employs over 13,000 people. We
provide market
information and measurement, together with insights and analysis, to
local and multinational organisations.? Wecombine our specialist
sector knowledge with expertise in the areas of new product
development,
motivational research, brand andadvertising research and stakeholder
management to bring our clients up-to-the minute, internationally
consistent information. Wethink differently to help our clients build
competitive advantage, making TNS the sixth sense of business.
www.tns-global.com
For more information please contact:
Rosemary Bayman, Managing Consultant, TNS Financial & Professional Services
Tel: 020 7891 1169 or email:
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Rachel Argyle, Senior UK PR Executive, TNS
Tel: 020 8967 1415 / 07903 556 365 or email:
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Paul Stelmaszczyk / Liz Kearney, Camargue
Tel: 020 7636 7366 or email:
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
|
