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02-Jul-08 Smiling through the recession
Companies are helping to take the bite out of the recession by trying harder to keep customers happy, a major new survey reveals.
More consumers are declaring themselves pleased with the way they are treated despite higher prices and tighter budgets, according to the latest national measure of customer satisfaction by the Institute of Customer Service (ICS).
The online ICS survey asked 12,000 people how they rated service performance in 12 major public and private sectors.
The results, announced in the latest ground-breaking UK Customer Satisfaction Index (UKCSI) shows that the index has improved from 69 to 71 out of 100 since the previous index was published in January.
ICS executive director Robert Crawford says: “Although it’s not a huge increase this is definitely a step in the right direction.
“It shows that when times are hard companies and organisations realise they need to try harder to make life easier for the people they serve.
“They have also got the message that when people have a finite amount of money they will be more careful to spend it where they are treated well. They are much more inclined to factor in customer service when it comes to making purchase decisions.
“The only differentiator left in UK business today is customer service. Products can be copied and costs matched, so service is the only aspect where companies can gain an edge.”
But he says before the UK can claim to provide world-class service it needs to reach a satisfaction level of 80, “so there is still a long way to go”.
Crawford adds: “We need to become a nation of grumblers. Complain, complain, complain – that’s the way to spur providers to make even greater efforts.”
The survey – the most wide-reaching measure of customer satisfaction throughout the UK - asked consumers to rate businesses and organisations on key areas such as complaint handling, professionalism, quality, and competence and friendliness of staff.
Responses indicate that overall helpfulness and friendliness of staff have improved markedly but handling of complaints and enquiries remain a sore subject.
The 12 sectors surveyed were automotive, finance (banks), finance (insurers), retail (food), retail (non-food), services, telecommunications, transport, leisure and tourism, utilities, Government departments and agencies, and local government.
For the second time services – covering small enterprises from hairdressers and plumbers to travel agents and shoe repairers – was the top scoring sector, with an improved satisfaction rating of 79.
“Small businesses do well because they give personal attention and are easily accessible if things go wrong,” Crawford says. “But there is no reason why their attributes cannot be replicated by the larger set-ups.”
Second best performing sector was again retail (non-food) where, after launching a concentrated drive on boosting customer service, Boots have leapfrogged John Lewis to take over at the top.
Sue Needs, head of productivity at Boots commented, "We are delighted that our commitment to excellent customer care has been recognised by our customers.
“We have recently delivered a new training programme to all our colleagues to support them in delivering great customer care and we run our own programme to track customer satisfaction in every one of our shops.
This has allowed our store managers to recognise colleagues who have given fantastic customer service and helps them focus on areas of service they can improve further which has been incredibly motivating for our colleagues.
“The fact that this bespoke focus on customer care means we have come top in the UKCSI by the Institute of Customer Service is testament to their hard work and commitment to giving our customers the help and advice they need to look and feel their best."
Worst performing sector was again local government, covering fire services, police forces and local councils, while utilities replace telecommunications as second bottom.
Other key findings show:
Biggest sector gains in satisfaction have been made by local government – despite its still lowly position - retail (food) and retail (non-food), telecommunications and transport.
Waitrose stays top of food retailers with “a highly impressive” rating of 84 and Marks & Spencer moves up to second to dislodge ASDA.
first direct stays supreme among the banks surveyed with another impressive rating of 85.
Local shoe repairers and key cutters have taken over top spot from hairdressers among services providers, with estate agents still the worst.
The Ambulance Service remains top among Government departments and agencies, while jobcentres remain in last place with a lower score than last time.
Northern Ireland and Scotland are still neck and neck as the nations with the most satisfied customers, with England third and Wales last.
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02-Jul-08: Smiling through the recession 30-Jun-08: Chey calls in for CBE 30-Jun-08: Jet2 best for customer service 30-Jun-08: French cars come bottom in satisfaction survey 25-Jun-08: Insurance firm creates 400 jobs
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