Latest Institute of Customer Service stats are the worst in nearly a decade
The Institute of Customer Service (ICS) has today (23 January 2024) released its latest UK Customer Satisfaction Index (UKCSI) figures, based on the organisation’s own research. The UKCSI shows that yet again, for the fifth year running, overall UK satisfaction with customer service has fallen.
The UKCSI Index figures
The UK Customer Satisfaction Index (UKCSI) is a national benchmark of customer satisfaction covering 13 sectors and based on 59,250 customer responses. The Index is currently at 76.0 (out of 100),.which is 1.7 points below January last year and 2.4 points less than its January 2022 level.
Every one of the 13 UKCSI sectors has lower customer satisfaction than January 2023, with Utilities, Transport, Insurance and Services declining by more than 2 points (out of 100).
21% of customers who rated an organisation “1 to 4” for customer satisfaction stated that the experience had “made them trust other organisations less”.
When businesses provide good customer service
I’m not surprised by these findings. The benchmark shows that customer service satisfaction is down year on year and this one is no exception.
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 UKCSI findings back this up “28% of customers who gave an organisation a 9 or 10 out of 10 for customer satisfaction say they will look to buy more products and services from the organisation.”
The findings also show that when buying goods or services a huge 31.3% of customers say they are prioritising excellent service in their purchasing choice, even if it costs more. Customers cited “trust in the company (31%) and advice (30%) and access to support and advice (30%) as the key drivers.”
And in contrast with this, the UKSCI found that nearly half (41%) of customers who are dissatisfied with a business say they avoid using it again, Only a tiny 1.5% say that they would spend more with that business in the future.
Jo Causon, CEO of The Customer Service Institute comments
These latest figures are a clear signal to business leaders and board members that customer service is not an optional extra, but a strategic imperative. Customers are demanding better service, especially in times of rising costs and uncertainty. They will not hesitate to switch to organisations that they can trust to deliver on their expectations.
It also highlights that the gap between businesses getting it right, and those getting it wrong, is widening – and the impact of a strong service strategy on an organisation’s bottom line has never been clearer.”
Trust is a precious asset that can take years to build, but seconds to lose. On the other hand, when customers trust an organisation, they are more likely to try new offerings, share positive feedback, and give them a chance to resolve any issues.”
Customer satisfaction results table – top 10 companies
The three highest-rated organisations are Ocado (85.7), first direct (85.3) and (I think surprisingly given John Lewis – Can it restore its customer service reputation?), John Lewis (85.1).
Which? comments on the research
Rocio Concha, Which? Director of Policy and Advocacy, said:
It’s a sad indictment of the state of customer service in the UK that satisfaction has plunged to the lowest level in nearly a decade. Which?‘s research has shown that the drop in standards is particularly keenly felt in essential sectors like energy, where prices have been largely determined by the energy price cap and so there has been less chance of customers switching away from a poorly performing provider.
“It’s clear that many businesses need to up their game to address the endless waits and poor quality help and advice they’re giving, which at best infuriate customers and at worst leave them out of pocket and dealing with serious ongoing problems.”
The future of customer service
2023 was another difficult year for consumers and businesses. The ONS figures for December 2023 showed that retail sales volumes fell by 2.8% on the previous year, only a slight improvement on the 3.9% drop in 2022. Retail volumes are now lower than they were in 2019.
Businesses need to invest more in customer service. In the long run the investment will mean more satisfied customers who do the heavy lifting of marketing for them. More satisfied customers and less time spent on dealing with issues means increased sales!
Businesses must improve their customer service or they will lose sales and customers. During this cost of living crisis, consumers needs a reason to stay loyal and treating them well is a big part of that, with all the research proving this point!
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.
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