We are navigating a period of considerable geopolitical and economic uncertainty – this much we know.
The conflict in Iran, rising protectionism and supply chain disruption are exerting real pressure on UK businesses and households alike. Despite an optimistic start to the year, these developments have undeniably impeded growth prospects. Now, with energy prices rising and cost of living concerns rising to the fore once again, the external environment is as challenging and rapidly changing as at any point in recent memory.
For organisations, it may mean renewed pressure on costs and margins as running the business becomes more expensive, along with potential supply chain disruption from the knock-on effects of this and other conflicts. As service leaders, we need to face into these realities while remaining steadfast in our values and our ambitions. As Jon Stewart once quipped, ‘If you don’t stick to your values when they’re being tested, they’re not values: they’re hobbies.’
The value of connection
This situation requires organisations to stand up for what they believe in and hold the line of service, quality and value. It is at times like these that customers look for organisations they can trust most. Staying connected to your customers – hearing their concerns, understanding their priorities and needs – becomes more valuable than ever.
It was very timely that our Annual Conference, held in early March, covered these themes, with ‘connection’ as the thread that tied many of our speakers’ excellent contributions together.
In my Conference keynote, I addressed the importance of connection, stressing the need for organisations to get the service channel balance right. Customer journeys are becoming increasingly digital, and this holds many important gains on both sides – ease of access and self-service for the customer, efficiency, and the ability to put more resource into the more complex customer needs for the business. But at the same time, organisations need to remember: personal connection done well and with authenticity is a differentiator that drives business growth and productivity, while demonstrating care and building trust.
Our own Breakthrough Research on AI, Hype or Reality, tells us something important here: only 24% of employees believe their organisation has seen a return on investment from AI to date, and trust – with customers and within teams – remains the central challenge. The organisations best placed to capitalise on the opportunity AI presents will be those that address this trust deficit directly, combining the efficiency gains AI can deliver with distinctly human qualities: listening, empathising, and building genuine, lasting connections.
Maintaining quality, being there
Businesses are rising to the challenge and reinforcing connectedness in many ways. Jayne Wall, Director of Central Operations at Marks & Spencer, spoke about the company’s determination to exceed expectations by being “constantly restless” to improve. A great example was their decision to increase the quality of their bakery products, reducing margins to keep prices keen for customers and delighting them in the process.
There was a similar theme from Steve Hughes, Group CEO of Coventry Building Society and The Co-operative Bank who spoke powerfully about the need to provide empathetic bereavement services and support the most vulnerable. His mantra of ‘holding the line’, living your purpose and creating a strong culture by design resonated.
Another aspect of connectedness is simply being there for your customers and living the experience through their eyes. Here, Steve Heapy, CEO of Jet2 & Jet2holidays, was fascinating, as he described how all his executive team have to spend a certain amount of time a year on the shop floor – not just at comfortable times, but including being there in the airport at 3am for those early morning flights out or back to genuinely put themselves in the customer’s shoes. Only by doing that can you spot the small adjustments needed to make the customer experience even better on the ground.
Moving forward as a Service Nation
Our Annual Conference was a powerful reminder of the genuine commitment to service excellence that exists across our member community. The quality of contributions from our speakers – across themes of trust, vulnerable customers, technology and leadership – underscored why connection is not simply a feel-good aspiration, but a strategic business imperative. My sincere thanks go to all our speakers for giving their time and expertise so generously to our audience of 400 business leaders.
The decisions we make now – about how we invest in our people, how we deploy technology, and how we prioritise the customer relationship – will shape the resilience of our organisations for years to come. In turbulent times, service is not a cost to be cut; it is the foundation on which trust, loyalty, and long-term growth are built.
Sound judgement, a genuine investment in people, and an unwavering focus on the customer – these are not optional extras when times are hard. They are the very qualities that will determine which organisations emerge from this period with their reputations and relationships intact. I leave the conference energised by the collective ambition on display and committed to continuing to make the case – in boardrooms, in Parliament, and beyond – that service excellence is central to the UK’s long-term prosperity.
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