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Are you satisfied?  Yes, no or maybe?

How satisfied with customer service are you?

The Institute of Customer Service (ICS) published its bi-annual UK Customer Satisfaction Index (UKCSI) report today, 7 July 2021. It showed that the number of complaints  about poor service in the last six months was at its highest level since 2009! The Institute surveyed 10,000 people.

The report said that the sectors with the biggest issues were transport, local public services – such as GP surgeries, councils and police services, and telecommunications. A quarter of those asked said that some organisations had used COVID as an excuse for poor service.

Long COVID in customer service?

The public is getting tired of companies using COVID as a reason for poor service. There is no excuse for it now. Companies have had long enough to get their act together and iron out any problems with working from home, for example.

The report covered the average customer satisfaction for experiences based on survey fieldwork collected between 14 September and 12 October 2020 and between 8 March and 6 April 2021. This was after the return of strict lockdown measures in large parts of the UK from 31 December 2020 and before the re-opening of non-essential retail on 12 April 2021.

The ICS gave these headlines:

  • The July 2021 UK Customer Satisfaction Index (UKCSI) is 77.4 (out of 100), 0.4 points higher than in July 2020
  • 14.9% of customers experienced a problem with an organisation, the highest rate since 2009. But satisfaction with complaint handling it at its highest ever level
  • For the first time, 50% of the customer experiences recorded in the UKCSI were digital
  • The Public Services (National), Retail (Non-food) and Telecommunications and Media sectors have each improved by at least 1 point but Public Services (Local) has declined by more than 1 point
  • 272 organisations or organisation types received a UKCSI score.
    first direct, John Lewis and amazon.co.uk are the highest rated organisations”

The devil is in the detail

However, companies of all sizes would do well to read the report and note some of the details. The report includes details of another survey which ran alongside the UKCSI. This survey showed the results of asking over 1,000 customers about the changes in quality of service they had experienced during the latest phase of the pandemic:

“49% of customers who experienced a new idea or improvement said they were more likely to buy from that organisation in future”

This demonstrates yet again how important customer service is in business.

Would you get 49% of customers coming back from your marketing budget at a much greater cost than improving customer service and not fobbing people off?! No, of course not. Yet businesses still don’t invest in customer service, choosing instead to undervalue the merit of doing the right thing by their customers.

Voting with their feet

Sectors such as tourism and transport have apparently seen the biggest improvement between autumn 2020 and spring 2021. However, less tourism and less transport would logically see fewer complaints as fewer people travelled! In addition, a number of companies were delaying refunds that did eventually pay up by the spring 2021.

Such research on the statistics should be approached with some caution as to how much they are skewed by an increase in online sales and reduction in travel and other sectors. What is clear, is that customer service needs to be improved across the board. As we hopefully come out of this pandemic, consumers are becoming less tolerant of poor service and will vote with their feet.

Good service means loyal customers

Certainly companies have a long way to go in improving service quality. It came as no surprise to see telecoms at the bottom of the table for customer service. Regardless of the research or report, the telecoms sector always comes out badly. Is it complacency, ignorance, arrogance or a combination of all three? All companies, but especially telecoms need to understand that investing in customer service has clear benefits. With it costing at least 5 times as much to gain a new customer as to retain one, companies of all sizes would be wise to pay more attention to existing customers than attracting new ones.

The Complaining Cow – free support for businesses

It takes 5 times as much to gain a new customer to retain one. So work on turning your customers into superfans who do much of the heavy lifting for you!

Join the Facebook Group Increase Sales through Customer Service: Compassion, Care and  Integrity  A private group where you can give and get support, advice and share good practice on how to improve customer service.

Free download Customer Service 5 ways to get rave reviews & referrals a few tweaks to your customer service can help you reduce the risk to your company’s reputation, finances and impact on customers and increase sales.

Customer Service how to turn customers into superfans raving about your products/services

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To see how The Complaining Cow can help you improve your customer service see Services.

 

 

Further information for consumers

All you need to know about complaining to telecom providers

All you need to know to make a complaint about energy

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For more help, advice, tips, information and templates buy  How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results!

 

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Customer service goes down, complaints are going up

Customer service is getting worse, according to the latest figures provided by The Institute of Customer Service (ICS). In figures released today, the ICS Customer Satisfaction Index (UKCSI) has shown an decline for the fourth consecutive year. And by a significant amount too. 14.3% of consumers said that they experienced a problem with customer service. This represents a rise of 1.5% since last year’s figures.

The number of organisations failing to keep their promises or commitments alone has trebled in the last two years. At 17.2% this is the highest level ever.

The UKCSI is based on extensive in-depth research. Published twice a year, the latest figures includes 43,500 survey responses covering 240 brands across 13 sectors. Responses have been gathered from more than 10,000 consumers, answering an online questionnaire.

It will come as no surprise to consumers that the number who experience issues is at its highest recorded level ever.

One of the biggest bugbears with complaint handling cited by consumers, was companies that don’t keep their promises. Certainly I hear this a lot, along with being pushed from pillar to post, repeating oneself and not being able to complain using the format desired.

Natalie Berg, Retail Analyst and Founder of NBK Retail, agrees. She says:
“You need to be on top of your game. You need to save customers’ time or enhance it. But enhancing time goes beyond a few instore gyms or beauty bars, retailers need to give shoppers a very compelling reason to ditch their screens and come into the store.” Companies that are not keeping their promises are not saving customers’ time!

First Direct continues to hold its first place for customer service in the latest UKCSI. The top 10 organisations in the July 2019 UKCSI are:

1. first direct (which scored 86% satisfaction and is number 1 for emotional connection and customer ethos and ethics.)
2. Debenhams despite the problems. Interestingly I wrote about Debenhams and whether customer service could have prevented Debenhams decline.
3. Suzuki
4. John Lewis
5. Next
6. Amazon.co.uk
7. Ocado
8. Nationwide
9. Netflix
10. LV=

Institute of Customer Service – UKCSI July 2019 – icsmail

The Institute’s research evaluates companies based primarily on customer experience (such as getting things right first time) and customer ethos. In their view positive emotional connection and ethics can create a higher overall level of customer satisfaction.

Clearly businesses need to do more to improve their customer service and complaint handling if they want to survive. If they want to thrive they will need to do a lot more to respect customers and put matters right for them quickly and effectively. Every company makes mistakes, it is how they deal with them that matters.

The Complaining Cow – free support for businesses

It takes 5 times as much to gain a new customer to retain one. So work on turning your customers into superfans who do much of the heavy lifting for you!

Join the Facebook Group Increase Sales through Customer Service: Compassion, Care and  Integrity  A private group where you can give and get support, advice and share good practice on how to improve customer service.

Free download Customer Service 5 ways to get rave reviews & referrals a few tweaks to your customer service can help you reduce the risk to your company’s reputation, finances and impact on customers and increase sales.

Customer Service how to turn customers into superfans raving about your products/services

The Complaining Cow Services

To see how The Complaining Cow can help you improve your customer service see Services.

The Complaining Cow logo, complaints, consultancy, speaker, workshops and more

 

If you are a business wanting to improve customer service, complaint handling and sales, find out more here.

 

 

 

 

Cover of How to Complain updated 2019 large cow logo

 

To ensure that you know your rights and how to use them take a look at How to Complain: The Essential Consumer Guide to Getting Refunds, Redress and Results! packed full of information, advice, guidance, consumer laws, tips and templates.