Ringing the changes: can telco companies put complaints on hold?

27th Jul 2015

Reacting to news that that Vodafone has been named the most complained about mobile phone company, Jo Causon, CEO of The Institute of Customer Service, comments:

“Customer complaints have probably never been higher than they are today. They are more savvy, better informed and more willing to voice their frustrations. Couple this with the rise of social media and it means that how organisations handle a complaint is the ultimate test of their scope for growth. “The simple fact is that complaints are a ‘moment of truth’ for any organisation; handled well they can be a source of loyalty, but handled poorly the cost in terms of short-term profitability and long-term market share and reputation can be immense.”

According to the latest UK Customer Satisfaction Index, the telecoms sector is in 11th place – out of 13 – suggesting that it has some way to go to ensure customer needs are being met. The data shows a customer satisfaction score of 71.6 (out of 100) – representing the fourth consecutive period that satisfaction levels have dropped in the sector.

Causon adds:

“Things will only get better if the sector provides a clear and easy way for customers to make a complaint and if they resolve issues rapidly. More than 1 in 5 consumers now use social media to register complaints and as a result they expect a quick response. Going forward it means organisations should analyse the type of complaints they receive to identify the issues customers find most annoying. If they benchmark against competitors they may be better able to see what is an industry trend and what they can do, specifically, to ensure it doesn’t happen again.”



Ends

Notes to editors

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About The Institute of Customer Service

The Institute of Customer Service is the professional body for customer service delivering tangible benefit to organisations and individuals so that our customers can improve their customers' experience and their own business performance. The Institute is a membership body with a community of over 400 organisational members - from the private, public and third sectors - and over 5,000 individual memberships.

For more information about the Institute of Customer Service go to www.instituteofcustomerservice.com

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