Customer satisfaction in the UK is at its lowest level since July 2010. Across all sectors the goalposts have moved and customers now expect to be involved in a real dialogue with brands – they no longer accept one-way communication. Yet many organisations are struggling to grasp this shift from a transactional to a relationship economy .
While some companies have adapted and are flourishing, a fourth consecutive decline in levels of satisfaction shows that many have not. So, what are the reasons for this consistent downturn? And can businesses reverse the trend and deliver great customer service?
Keeping the pace
Consumers’ expectations are changing rapidly. People want convenience, speed and value when they deal with businesses, and when they have a complaint they want their voice to be heard. At the moment many organisations are falling short.
One key indicator of this dissatisfaction is how customers view the responsiveness of organisations. According to The Institute’s latest UK Customer Satisfaction Index (UKCSI) some of the biggest frustrations that customers have relate to the speed of complaint handling and the attitude and abilities of staff. Under these two metrics, organisations are still scoring, on average, lower than they were in 2013. In a new economy this deficiency must be addressed, given that it is speed which plays such a significant role in customer service.
The reputational risk of inaction has never been higher, with evidence suggesting that one in three customers will turn to social media for a resolution if they want a rapid response.
Younger customers in particular are driving this more demanding relationship. The 18-24 age group is the least satisfied of all and the rise of social media is feeding this culture. Complaints via social media have risen eight-fold since January 2014, highlighting the challenge that all businesses face in responding with speed, without compromising the quality of service delivery.
However where social media provides a challenge, it also provides an opportunity – 42% of young people have recommended an organisation they have dealt with in the last six months, higher than any other age bracket. If companies can get it right, effective customer service can bear fruit very quickly.
On top of these pressures, many businesses have struggled to make the necessary significant investment of time and money in customer service, as budgets tightened during the global economic downturn. A short-term approach will not make an impact on revenues and profitability, so where should this investment be focused?
Arresting the slide
First and foremost, a customer service culture needs to be led from the top so that there is a clear and visible objective. There is no quick fix – its importance must be instilled across and throughout the business. After all, the impact on the bottom line is significant. The retail food sector demonstrates this – our research shows that companies performing above average in terms of customer satisfaction outperform their below average competitors by up to 3%.
Leaders must ensure that all employees have the requisite skills and authority to deal with difficult customer complaints. Customers can come into contact with any member of staff through social media, telephone, email or a face-to-face meeting, making it crucial that employees are supported and have the emotional intelligence to deal with issues in a consistent, appropriate manner.
For this to happen, management must also give greater independence to individuals, allowing them to manage the speed of response that will win customers over and ensure their loyalty. For too long, customer-facing staff have been seen as a low paid and low skilled group that can be brought in seasonally. But they represent the organisation at the most important time – when dealing with customers.
With over 70% of the UK’s working population working in customer-facing roles, making customer satisfaction central to any business’ objectives should be obvious. The likes of Morrisons and Halfords have led from the top on this issue with appointments of customer-focused CEOs, but there is a long way to go.
If the UK is to accelerate growth, businesses of all sizes must appreciate the changing dynamic of the customer-brand relationship. If they do not, they will lose market share to their competitors that get it.
Jo Causon is the CEO of The Institute of Customer Service
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