UK satisfaction with customer service falls again

Institute of Customer Service Jan ’23 figures

The Institute of Customer Service (ICS) has today released its latest UK Customer Satisfaction Index (UKCSI) figures, based on the organisation’s own research. The UKCSI shows that overall UK customer satisfaction fell by 0.7 points year on year, to 77.7 (out of 100).

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. Consumer spending on the high street and online continues, despite the cost of living crisis, but the expectations in customer service are now higher.

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. More satisfied customers and less time spent on dealing with issues means increased sales! It costs at least 5 times as much to gain a customer as to retain one. The ICS research shows that employees spend an average of 4.8 working days a month handling customer problems. It is therefore not surprising that UK businesses lost £10 billion a month in 2022 dealing with complaints.

The ICS research also found that “customer satisfaction with handling of complaints has also fallen 2.5 points since last year, compounding the issue.” and that “Almost three times as many customers indicate that they are willing to pay more for excellent service.”

14.3% of consumers said that they experienced a problem with customer service pre-COVID. (UKCSI figures in the 6 months up to July 2019) That figure is now 17% over the last 6 months. It begs the question ‘why?’

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.

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.

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