Small businesses are the economicfoundation of towns and neighborhoods, driving job growth andbringing energy and vitality to communities.

With their local roots, relationships and market knowledge,credit unions ought to enjoy a competitive advantage in providingfinancial services to local businesses. Yet, credit unions have yetto fully tap the small business market as large banks account forabout three-quarters of the small business financial servicesmarket.

Taking productive steps to develop strong and lastingrelationships with local businesses should be an essential part ofa credit union's strategy to increase market share, revenue andmeet the needs of small businesses. In order to compete andgrow, credit unions must be able to efficiently deliver smallbusiness customers the right products at the right price, viapersonalized experiences designed to keep small businesses with thecredit union.

A November 2012 J.D. Power and Associates survey underscores theimportance of assigning an account manager to manage each smallbusiness account. Small business customers are more than twice aslikely to reuse services from their bank or credit union when theyhave a dedicated account manager (47% versus 19%).

Account managers can assist by providing a high-touch level ofcustomer service, but having an account manager isn't enough. Themanager must also understand the customer's business.

Respondents reported that having an account manager who didn'tunderstand the business was no better than having no accountmanager at all. The bottom line: do not bother to assign an accountmanager who won't take the time to truly understand thebusiness.

A separate Aite study in 2012 reported similar findings. Thatresearch also found that small businesses require greater financialassistance and new tools as they struggle to access credit duringthis sluggish economic recovery.

Credit unions have the opportunity to fill this void for theirsmall business members. The Aite survey indicates that about 41% ofsmall businesses do have a dedicated account manager as the pointperson for their financial services needs.

This study also found that, of those small business bankingcustomers who were “dissatisfied” or “extremely dissatisfied” withtheir primary financial institution, 65% did not have arelationship manager.

However, it takes more than the mere presence of an accountmanager to ensure a harmonious relationship. What's required is ahighly engaged relationship manager who clearly understands thecustomer's small business needs will keep small businessesfinancial services with the credit union.

Member opinion surveys clearly show that one step credit unionscan take to increase small business customer satisfaction andretention is to focus on developing strong, personal relationshipswith local small business owners. This begins with saying hello andgetting to know their needs.

The J.D. Power research also reveals that small business ownershighly value being greeted by name when they visit their branch.Yet a simple greeting is offered significantly less often to smallbusiness customers (47% of the time) than to retail customers (64%of the time). That's true even though small business owners visitthe branch twice as often.

Several easy-to-implement procedures can have a rapid andmeasurable payback for credit unions. First, financial institutionsneed to find out who the potential small business customers are anddevelop plans to get to know them.

Most importantly, credit union associates need to greetcustomers by name when they visit the branch. Credit unions shouldalso identify the most valuable small business customers and assignmotivated account managers to the top accounts. The stakes arehighest with these relationships and credit unions cannot afford tolose their high-performing accounts to competitors.

Credit unions must also implement training and monitoringprograms that will increase consistency across all branches andmake sure that relationship-building techniques are practicedsuccessfully branch to branch.

Just as small businesses are the growth engines for cities andtowns across the country, they can also contribute to the growthand stability of local credit unions. Credit unions that, inaddition to providing loans and financial services, also developstrong, personalized relationships with small business owners willgenerate mutual sustained value. For the credit unions that do so,“hello” is just the beginning.

George Noga is asenior vice president and managing director for Fiserv Inc. in Brookfield,Wis.