Research on Microbusinesses
The Project & the Challenge
The goal of the microbusiness research project was to develop a nuanced understanding of the needs and behaviors of PNC's customers that make less than 1 million dollars annually with their self-owned businesses. This segment of people represents around 65% of PNC's existing business customers, and is projected to grow even more in the coming years. The challenge of the project came from understanding that our PNC business partners knew very little about this segment of customers, and were eager to get qualitative feedback on the microbusiness owners' motivations, needs, business behaviors, and financial requirements from their banks.
Research in field with Microbusiness Owners
The research consisted of a 2-fold effort to understand this customer: from the perspective of the business owner, and from the perspective of PNC's bankers that serve them. We conducted 24 interviews with microbusiness owners across two different markets (Detroit and Atlanta), and conducted in-home/in-business ethnographic research with them.
Synthesis and Insights
We discovered from our research that microbusiness owners have many unique qualities, needs, desires, and goals that differentiate them from PNC's typical business owners. Our synthesis surfaced insights into how and why these owners start their businesses, what motivates them to keep their doors open in uncertain financial times, how they meet and achieve their personal and financial goals, and what they're looking for from their banking relationship. Images of our insight posters are shown below:
Microbusiness Owners from the Banker's Perspective
We also conducted a diary study with PNC bankers that serve microbusiness customers to understand this customer from the bank's perspectives. What we learned from the bankers showed us that there is a big gap in the bank's understanding of the needs and motivations of their microbusiness customers.
We conducted a workshop with the bankers whose feedback we collected in the diary study to share their collective feedback on microbusiness customers, and to share the insights we learned from our field research with the microbusiness owners, as well.
Outcomes — A New Approach for Small Businesses
We finalized our research from the field research and feedback from our bankers into a final insights report that was shared across the bank. The research, in conjunction with quantitative market research was leveraged by PNC's business banking line of business to develop a set of services and refined products offerings that now serve this large segment of customers more appropriately, including the introduction a new role foe the bank: Small Business Banker,
