15th Jan 2016
With more than a quarter of the value of small- and medium-sized enterprises tied to reputation, organisations need to do more to manage the way customers perceive them, new research shows.
When combined with the nation's biggest firms, the data compiled by professional services network BDO and the Quoted Companies Alliance (QCA) notes the total value of corporate reputation for all UK-listed companies could be as much as £1.7 trillion. Of the 220 companies included in the study, the majority claimed to recognise the significance of maintaining a good reputation – but only two-thirds had taken steps to actively manage theirs.
The data supports findings from the Institute of Customer Service, which highlights the importance of maintaining a strong position in the eyes of the customer. According to the Institute’s latest UK Customer Satisfaction Index, scoring a nine or ten out of ten on trust leads to a much higher chance of repeat purchase and recommendation than an eight out of ten or lower.
“One of the striking discoveries from this research is the step-change in levels of customer trust, recommendation and loyalty for organisations who achieve the very highest ratings for customer satisfaction,” notes Jo Causon, the Institute’s chief executive. “In the relationship economy, anything less than the highest levels of satisfaction across the whole customer experience leaves relationships fragile and long-term business performance vulnerable.
“With trust becoming such a dominant factor in determining the customer experience, UK organisations must do more to address rising customer expectations. Organisations that ignore consumer priorities do so at their peril and will find it difficult to compete with those that already have a long-term culture of customer service.”