Businesses can’t afford to lose customer confidence

25th Jan 2016

Business leaders are increasingly concerned about the economic and geopolitical threats their organisations face, according to an annual survey of more than 1,400 chief executives.

The report, conducted by Pricewaterhouse Coopers (PwC), reveals two in three company bosses believe their organisation faces more threats today than it did three years ago. Meanwhile, only 27% of those interviewed believe global economic growth will improve over the next year – 10% fewer than last year.   

As world leaders gathered at the annual World Economic Forum in Davos, Switzerland last week, PwC chairman Dennis Nally shared the organisation’s latest findings. “No matter what the business size, the threats it faces are becoming more complex, crossing the borders of geopolitics, regulation, cyber security, societal development, people and reputation,” he said.

Such threats are directly affecting confidence in UK business, the report shows, with only a third of business leaders confident that revenues will grow over the next 12 months – down from almost 40% last year. 

Customer-facing organisations need to ensure that this knock in confidence does not affect customer sentiment, and remember that focusing on service will help to boost growth. Indeed, the latest UK Customer Satisfaction Index (UKCSI) from the Institute of Customer Service suggests confidence breeds custom. Organisations that have the highest levels of trust and customer satisfaction, scoring nine or ten out of ten, are more likely to encourage customer loyalty and recommendations – and, ultimately, to generate more revenue.

The retail food sector is a key example of the positive impact that confidence can have on the bottom line. Food retailers with UKCSI scores of more than one point higher than the sector average saw an average sales growth of 7.6%, compared to a drop in sales of 0.4% for those with a score below the sector average.

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