Institute of Customer Service July 2024 research
The Institute of Customer Service (ICS) has today (09 July 2024) released its latest UK Customer Satisfaction Index (UKCSI) figures, based on the organisation’s own research. The UKCSI shows that yet again overall UK satisfaction with customer service has fallen. As a consumer champion I am not surprised by this findings!
The UK Customer Satisfaction Index (UKCSI) is a national benchmark of customer satisfaction covering 13 sectors and based on 59,500 customer responses. The July 2024 UKCSI is 75.8 (out of 100), a slight drop of 0.8 points, compared to July 2023, but 2.6 points below its highpoint of 78.4 in July 2022.
Key UKCSI findings
- 6 of the 13 UKCSI sectors have fallen by at least 1 point compared to July 2023
- 27 organisations have improved by at least 2 points compared to July 2023 but 80 organisations have dropped by 2 points or more.
- Timpson (86.0), Nationwide (85.2) and John Lewis (85.0) are the highest rated organisations in the July 2024 UKCSI.
- 45% of customers say that whether or not an organisation does the right thing, in its business practices or its impact on society, has influenced their satisfaction.
- 62% of customers believe that bad practices or behaviour by a company will damage its long-term reputation and that an entire sector can be tarnished by the actions of one or a small number of companies.
- 56% of customers say their satisfaction with an organisation has been influenced by whether they felt it understood and cared for their personal situation and needs”.
- 31% of customers are prepared to pay for excellent service even if it costs more.
Which? comments
Rocio Concha, Which? Director of Policy and Advocacy, said:
This research lays bare the dismal state of customer service. While some businesses say they have invested in their customer service, our research shows there’s still a long way to go for companies to get their customer service up to scratch.Which?’s research has shown that the drop in standards is felt particularly keenly in essential sectors like energy and broadband – with Virgin Media, British Gas, Ovo and Scottish Power named the worst performers in these sectors. It is never OK for firms to provide sub-standard customer service, but in essential sectors providing vital services millions rely on every day, it is completely unacceptable.People should be able to contact companies easily and get the answers they need without unnecessary barriers and in the way that suits them best – whether that is speaking to a person or a chatbot. Any firms that are falling short need to make improvements urgently and ensure they are offering customers the service they expect.”
Companies need to improve customer service
Companies that fail their customers in this way are foolish for not investing more in customer service. In the long run the investment will mean more satisfied customers who do the heavy lifting of marketing for them, by word of mouth and through positive online reviews. More satisfied customers and less time spent on dealing with issues means increased sales!
The CSI research shows this. The report states that “Customer satisfaction scores for an organisation can vary from one UKCSI to another but the Institute’s research has highlighted the link between consistently high levels of customer satisfaction and superior business performance, in terms of profitability, revenue growth and revenue per employee.”
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.
This latest research shows the odd improvement here and there, but on the whole there is a continued decline in customer service. How businesses deal with complaints and do the right thing is becoming more important to consumers.
Businesses should note that, even during a cost of living crisis, 31% of consumers are prepared to pay more for better customer service. And with 45% of consumers saying that a business doing the “right thing” influences their satisfaction with a company, then all sectors should be reflecting and investing in customer service and ethical practice.
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