Forget the Fancy Digital Tools: To Win New Business Customers, Your People and Reputation Are the Keys
Only one-third of business bank accounts say they have an assigned bank representative. Yet research shows that a strong, personalized relationship is still key to client satisfaction and retention – even more so than industry expertise.
By Corey Wrinn, Rivel Banking Research
As businesses across the U.S. are looking to grow under rapidly evolving regulations and a new administration, banks and credit unions have an opportunity to draw in more clients to help them achieve their goals.
Based on a recent Rivel Banking Research analysis of commercial and small business clients’ needs, banks should focus on two key areas where banks can enhance services and rethink the ways they interact with clients.
Personalization: The Key to Building Relationships
One of the standout findings from our research is the importance of personalization in banking relationships. Surprisingly, only one-third of business bank accounts currently have an assigned banking representative. This presents a significant opportunity for banks to differentiate themselves by offering personalized services. And the payoff is clear: Of those businesses that have a banker assigned to them, 86% are highly satisfied, ensuring a happy client.
Moreover, a strong relationship with a dedicated banker is valued more by businesses than even the expertise in their specific field (see chart). This underscores the need for banks to invest in relationship-building strategies that prioritize personal connections.
But personalization goes beyond merely assigning a representative. It involves understanding the unique needs and challenges of each business client and tailoring solutions accordingly. Banks that take the time to learn about their clients’ attributes, growth plans and pain points can offer more relevant advice and customized financial products. Ultimately, this commitment to personalization can lead to higher client satisfaction, increased loyalty and a stronger competitive edge in the market.
But understanding a client’s business is only one piece of the puzzle for bankers. Responsiveness and quality communication are the building blocks of long-term success in the relationship.
Preferred communication channels: Recent Rivel research also explored the preferred communication methods between businesses and their banking representatives, revealing insights that challenge the push toward all-digital banking solutions. Traditional channels still dominate, with phone calls (64%) and in-person meetings (59%) being the most favored. Email communication follows closely at 46%. Interestingly, newer methods such as video calls (26%) and social media (15%) are less preferred, indicating that businesses still value direct and personal interactions over digital channels.
For banks investing heavily in digital communication platforms, this data presents a crucial insight — digital tools should enhance, not replace, traditional communication channels for businesses. While online banking and mobile apps excel for routine transactions, meaningful client relationships are still built through personal interaction. The most successful banks will be those that combine high-touch personal service with digital efficiency, creating a service model that delivers what their business clients clearly prefer.
Reputation Management: Marketing Beyond Word of Mouth
Commercial banks have relied on energetic and charismatic bankers for years to go door-to-door, build a client list and grow accounts, normally starting with a loan. The time is now, however, to move beyond traditional word-of-mouth advertising to stay competitive and attract new accounts. While personal recommendations remain valuable, the reach and influence of social media and brand awareness is now equal.
Leveraging digital channels allows banks to engage with a broader audience, build trust through transparent customer reviews and enhance their brand presence. By actively participating in online conversations and showcasing positive customer experiences, banks can create a dynamic and compelling narrative that resonates with potential clients, ultimately driving growth and fostering stronger customer relationships.
Specifically, banks should highlight new products and services that address specific business problems, such as innovative financing solutions, cash flow management tools and tailored advisory services. By demonstrating how their offerings solve real-world challenges, banks can position themselves as indispensable partners in their clients’ success.
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In fact, according to SouthState Bank’s recent estimates on community bank product usage, most clients don’t even know there are certain products available to them. There is low utilization nationwide of products that could improve business’ bottom line, such as — online treasury management (8.0%), bill pay (5.2%) and merchant services (3.5%). Is your bank advertising not only your rates, but your solutions?
Why reputation matters: When it comes to choosing a banking partner, reputation plays a critical role. One thing that the traditional face-to-face commercial sales model has done well is to establish certain institutions as friendly, strong and stable, which don’t always come through clearly in advertisements or client reviews.
When it comes to defining a "financially stable institution," the history and longevity of the institution (50%), customer ratings (47%) and the number and quality of branches (35%) are highly valued by businesses. This highlights the need for banks to maintain a strong, positive reputation and leverage customer experiences through reviews, when appropriate, on platforms like Google and Yelp.
Opportunities for Commercially Focused Banks Today
The insights from our research reveal several key opportunities for banks to enhance their commercial and small business services while building stronger relationships with their clients:
1. Invest in personalization: Assign dedicated banking representatives to business accounts to foster personal connections and build trust. Personalized service not only meets the unique needs of each client but also strengthens loyalty and satisfaction.
2. Prioritize traditional communication: Focus on phone calls, in-person meetings and email communication to align with the preferences of business clients. Proactively offering these meetings demonstrates a commitment to accessibility and responsiveness, which are highly valued by businesses.
3. Enhance reputation management: Maintain a strong, positive reputation by delivering excellent service and leveraging customer reviews to attract new clients. Emphasize product solutions that address specific business challenges rather than just showcasing a broad range of products. This approach highlights the bank’s ability to solve real-world problems and adds value to the client relationship.
By addressing these key areas, banks can position themselves as trusted partners for businesses, ultimately driving growth and success in the competitive banking industry. As always, ensure you understand not only your local opportunity for new business, but what your local competitors are doing as well.
