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UK Customer Satisfaction levels remain low, threatening economic recovery

Customer satisfaction scores have reached their lowest level since 2010 across the UK, potentially impeding business growth and economic recovery. Despite the intrinsic link between high… View Article

GENERAL MERCHANDISE NEWS

UK Customer Satisfaction levels remain low, threatening economic recovery

Customer satisfaction scores have reached their lowest level since 2010 across the UK, potentially impeding business growth and economic recovery. Despite the intrinsic link between high levels of customer satisfaction and business performance, recent research indicates a concerning trend.

Key Findings from the Latest UK Customer Satisfaction Index (UKCSI)

The latest UK Customer Satisfaction Index (UKCSI) reveals a score of 75.8 out of 100, a decline of 0.8 points compared to July 2023, and 2.6 points below the highpoint of 78.4 in July 2022. This marks the lowest level since July 2010.

Impact on Business Performance

Since 2019, companies consistently achieving high customer satisfaction levels have demonstrated financial stability. Notably, in the food retail sector, businesses scoring at least 1 point above the sector average saw an annual sales growth of 5.8%, compared to a market average of 2.9%.

Banking Sector Insights

The UKCSI findings also highlight the importance of customer satisfaction in the banking sector. Banks and building societies with scores at least 1 point above the January 2024 sector average saw net gains of 30,434 current accounts, whereas those scoring 1 point below faced a net loss of 4,119 accounts.

Top Performers in Customer Satisfaction

Timpson topped the UKCSI table for best service, followed by Nationwide and John Lewis. Here is the full ranking of top performers:

Customer Preferences and Economic Impact

The report continues to show that a third of customers prefer excellent service, even if it costs more. Poor service not only damages reputation but also impacts business growth. The study finds that 65% of employees spend an average of 3.3 days per month dealing with service failures, translating to a £6.8bn monthly hit to Britain’s economy.

Expert Commentary

Jo Causon, CEO of the Institute of Customer Service, commented on the findings: “The UK Customer Satisfaction Index is the independent barometer for the health of the nation’s service levels. Unfortunately, the current outlook isn’t where we need it to be, despite our research showing that higher levels of customer satisfaction correlate with financial stability and growth.”

About the UKCSI and the Institute of Customer Service

The UK Customer Satisfaction Index is a biannual report based on 60,000 survey responses from over 15,000 customers, representing the UK adult population. It provides insights into the state of customer service across 13 key sectors.

The Institute of Customer Service is the UK’s independent, professional body for customer service, enabling organisations to improve performance through service excellence. It serves as the secretariat for the All-Party Parliamentary Group on Customer Service.

For more information, visit the Institute of Customer Service.

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