UK customer satisfaction levels are at their lowest since 2010. The latest UK Customer Satisfaction Index (UKCSI) has seen a drop of 0.8 points since July 2023 to 75.8 out of 100.
“The UK Customer Satisfaction Index is the independent barometer for the health of the nation’s service levels. Unfortunately, the current outlook isn’t where we need it to be, despite our research showing that higher levels of customer satisfaction correlate with financial stability and growth,” commented Jo Carson, CEO of the Institute of Customer Service.
Since 2019, the companies that have consistently secured the highest levels of customer satisfaction over the past five years have achieved continued financial stability and discipline. The latest results show this is particularly evident in the food retail sector, where companies with a UKCSI score at least 1 point above the sector average achieved annual average sales growth of 5.8% compared to a market average of just 2.9%.
For individual company performance on the index, Timpson scored the highest for customer satisfaction levels. It is followed by Nationwide, John Lewis, Jet2holidays and Waitrose.
The report also found that a third of customers would prefer customer service, even if it meant they had to pay more.
Poor customer service has a part to play in affecting business growth and performance. 65% of employees taking part in the survey indicated they spend 3.3 days a month dealing with customer service issues.
“Business leaders need to understand the evolving needs and expectations of their customers, developing their organisations’ approach accordingly to unlock the sustainable growth the economy needs,” shares Causon. “The [new] government’s post-election business policy agenda should encourage all organisations to understand and serve customers better if we are to put our economy back on track.”