2nd Mar 2018
The Institute of Customer Service has urged companies to prioritise customer experience alongside employee engagement if they want to boost revenues.
The call comes after The Institute welcomed proposed changes to the UK Corporate Governance Code that acknowledge the importance of companies engaging with their workforce.
However, The Institute believes that customers should also be identified as important stakeholders by the code, and that customer experience should be explicitly recognised as a boardroom issue.
Institute research shows that over a period of five to eight years, organisations whose customer satisfaction averaged at least one point better than their sector – on the 100-point scale of the UK Customer Satisfaction Index (UKCSI) – achieved average compound turnover growth of 4.7%, compared to 3.5% for those with lower than average customer satisfaction.
They have also seen a boost to productivity with a 114% larger rise in revenue per employee. Research also shows that 67% of customers who had a great experience with an employee say they will buy again from that organisation – compared to 11% for those who had a bad experience.
Given the link between employee engagement, customer satisfaction and business performance, The Institute believes the code should stipulate that companies have appropriate customer experience expertise and accountability at board level. And customer experience strategy and results should be included in annual reports and accounts.
The Institute says the code should also set out that employees should feel listened to, be involved in decisions that affect them, and empowered to contribute ideas that improve customer experiences and organisational performance.