Small business customers represent a wealth of cross-selling opportunities for credit unions, according to a recent research study by SYNERGISTICS RESEARCH.
In a telephone survey during February 2003 of 600 small business owners and executives of companies with annual sales of $100,000 to $10 million, only one-third of small business owners have all of their personal or household financial accounts and services with the main institution used by their company. Indeed, the study, entitled "The Role of the Small Business Relationship Manager," found one-third say they have none of their personal or household financial services with their company's main financial provider. A similar number report having some household services with the institution. Incidence of any household accounts with the company's main provider tends to be more widespread among firms with sales volume of $100,000 to $999,999.
"In addition to the business financial accounts and services, there is also the potential to enhance profitability by acquiring the business owner's personal or household accounts," said William H. McCracken, CEO of SYNERGISTICS.