BAI Online

Deborah L. Bianucci

Research Can Help Sharpen Small Business Efforts

What is the impact of free checking on fee income from the small business segment? What are the implications and economics of small business delivery strategies? What strategies are effective in expanding wallet penetration of the business, the owner and their employees? Which payment strategies optimize revenue growth and what is the impact on customer retention? Two major initiatives from BAI Research are focused on these and other challenges financial services companies face in serving the small business market.

BAI’s ground-breaking benchmarking research helps banks assess their relative performance in small business, with comparisons that help executives diagnose deficiencies and identify opportunities. The benchmarking provides the banks with an objective, data-driven means to rank themselves competitively, while providing the context for strategy formulation and goal-setting. This benchmarking research, combined with BAI’s Deposit Performance Benchmarking to track consumer data, is unique in the context and perspectives that retail financial services executives need to drive strategic decisions.

BAI is also studying effective strategies to capture increased small business payments revenues by studying small business owners’ needs. Payments products for small business can offset revenue and income pressures while providing the necessary support to build long-term “sticky” relationships. BAI’s study will draw heavily on primary research, through a survey of approximately 1,500 small business owners, to help banks better understand customer demand and position their products and services accordingly. The study will also include interviews with leading bank executives and industry experts to assess winning small business practices, which will provide tactical guidance for the demand-driven insights. The final results of this research will be published in early 2006.

Research studies such as these demonstrate BAI’s commitment to providing you with comprehensive and objective information on key business issues. By connecting people and information, we can help you improve both individual and organizational performance. As always, we invite your comments on how we can continue to deliver high value information.

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