Telecommunications must rebuild trust as customer satisfaction falls

31st Oct 2014

• The UK Customer Satisfaction Index has found that Telecommunication organisations fail to meet the expectations of almost a quarter (24%) of customers

• 23% of customers have experienced some problem with their telecommunications provider in the last three months, a higher rate of complaints to any other sector

• However younger brands such as Tesco Mobile continue to lead in terms of customer satisfaction Customer service in the telecoms sector is continuing to drop with 24% of customers unsatisfied with their provider over the last three months, the latest findings from the Institute of Customer Services reveal. 

This is down another 1.1 points since January 2014 and at its lowest point since the launch of the UK Customer Satisfaction Index (UKCSI).

Looking at over 40,000 unique responses, the UKCSI analysed customer satisfaction, trust and expectations across 13 sectors and found Telecoms ranked 9th. Whilst the sector suffered overall with only 16% of customers claiming that customer service had exceeded their expectations, some brands such as Tesco Mobile continued to grow in terms of customer trust and service. Tesco Mobile received a score of 85.8 (out of 100) up from 82 in January.

The report also shows that building a high level of trust is influenced by the quality of customer service, something that is particularly important in a sector such as Telecommunications. This is shown by the fact that organisations that score higher in UKCSI are more trusted by their customers, underlining the importance of customer service in building and sustaining trust and reputation.An example of this is GiffGaff who scored 78.6 (out of 100) overall on the UKCSI, also scored 7.6 (out of 10) for trust, higher than the industry average.

There is however, a definitive diversity amongst in the sector, with 7 of the top ten organisations sitting below the telecommunications average for trust (7.5). The report also show that the most popular form of contact within the Telecommunication Sector was by telephone with 78% of customers using this channel which is above the UKCSI average of 22.3%. 5.1% of customers who contacted an organisation about a problem used social media. It is clear from the latest UKCSI that in the Telecoms sector a failure to build lasting, trusting relationships with customers can have a real impact on the bottom line.

Jo Causon, chief executive of the Institute of Customer Service commented:

“It is clear from the latest UKCSI that in the Telecoms sector a failure to build lasting, trusting relationships with customers can have a real impact on the bottom line. In some sectors, Telecoms included, it seems like a number of organisations are neglecting customer service. Considering the clear correlation between good customer service and retaining customers, this is surprising. For the second time this year Tesco Mobile has scored highly in the UKCSI and this is also reflected in how much they were trusted by consumers. Trusting customers are often the most loyal customers and some companies in the Telecoms sector need to realise this make customer satisfaction a higher priority. In the era of the increasingly influential customer it is important that we keep great service at the heart of every business.”

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