Against a backdrop of strained costs, low growth, disruptive technology and political dissonance, having clarity on what to expect and where to focus over the coming months will become increasingly important. As busy people, the ability to see the signals amongst the noise makes all the difference.
The latest UK Customer Satisfaction Index, which The Institute launched this week, is a timely barometer of customer sentiment in the UK and reveals a set of interesting results and trends which businesses need not only to reflect but act on.
Within this, one point remains abundantly clear: customers continue to place a strong emphasis on the overall service experience – not just price, but on quality, reliability, care and communication.
In today’s operating environment, for boardrooms and businesses to build resilience and generate long-term growth, having a relentless focus on service excellence, a distinctive purpose and proposition and a deep understanding of what drives value for consumers is essential.
Where organisations are getting it right with service
Overall customer satisfaction sits at 78.3 out of 100 – a full point higher than this time last year, but just 0.1 point higher than in January. As the fourth consecutive rise in two years, this is a positive sign overall.
But behind an impression of stability on the surface, shifts in the business environment and sector-specific developments are having an impact, indicating that this growth in satisfaction has flatlined in places.
There are positives, like with banks and building societies, which received their highest-ever UKCSI score. This is evidence that with the right focus on service over a long period – including striking the right balance between digital experiences and effective human intervention – makes a difference. It also shows how long it takes to reverse the impact of reputational damage caused by the financial crisis back in 2009.
Similarly, it demonstrates that regulation, when implemented constructively and with customer outcomes in mind, has a valuable role to play in holding businesses accountable for their service quality in a meaningful way, whilst improving the overall experience their customers have.
What’s more, higher levels of customer satisfaction continue to align with stronger financial results, even when operating conditions are at their most challenging. The incentive for service-led organisations is clear.
Beyond the factors I’ve already mentioned, the key differentiators in raising satisfaction are demonstrating care and empathy, handling problems effectively and delivering efficient transactional experiences.
Navigating the road ahead
There is a viable route forwards, if we focus on the right areas and double down on our investment in service excellence. This means instilling credible values and purpose, genuinely engaging and developing employees, and leveraging technology and data effectively to improve costs, efficiency and security.
Doing so, while building and maintaining a leading service culture to go with it, is far from easy. Adding to the challenge, it looks like we are going to see yet more upheaval and uncertainty in the political, business and customer environments over the next six months.
Since January, the amount of people who feel better off than a year ago has fallen from 38% to 35%, while those expecting to be better off in 12 months’ time has dropped from 43% to 39%. Confidence in the wider economy has weakened too, with 36% now saying it is a bad time to make major purchases – which is up from 31% since the start of the year.
There are obvious repercussions for businesses here, as customers become more cautious in their spending. That said, our latest Index also found that 34.4% of customers are willing to spend more for better service, showing a clear path for organisations to greater revenues through service leadership.
Embracing the importance of a strong service-focused culture to maintain purpose, improve performance and build the capacity for agility and resilience in the long term will be key. Not just for organisations to thrive, but to rebuild momentum in improving customer satisfaction for the benefit of the bottom line, and for the UK economy.
I encourage all to take a look behind the headlines to dig deep and maintain focus on driving cultures that are service-led to ensure we remain resilient to whatever the environment throws our way.
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