World-beating customer service is thriving in the UK — giving confidence to companies to look beyond the recession, according to groundbreaking new research.
More than 46 per cent of consumers think Britain is best for how well we are treated, surging ahead of the US on 25.5 per cent, says the Institute of Customer Service. Germany is a long way behind in third on 7.9 per cent and other major European tourist destinations — France, Spain, Italy and Greece — all scored poorly.
Despite difficult trading conditions, almost 40 organisations or professions achieved a customer satisfaction score of 80 per cent or above — the benchmark for world class customer satisfaction.
The study of 25,000 people revealed John Lewis is the best individual organisation and the first to top 90 per cent in the ratings. Other top performers include the Fire and Ambulance Services, Waitrose, M&S, Mazda and the RAC.
Jo Causon, the Institute’s chief executive, said: “This is an exceptional result for those 37 organisations from a wide variety of sectors, which achieved above 80 per cent — the benchmark for world-class customer satisfaction.”
Overall, the UK achieved an average rating of 74 per cent in the Institute’s UK Customer Satisfaction Index (UKCSI), up from 72 in the previous study six months ago.
Jo Causon said: “The results show organisations are trying really hard to keep consumers satisfied, but we realise from the wide range of scores across the sectors that there is no room for complacency.”
Even the much-maligned banking sector performs better, with more people content with the attention they receive in branches and on the phone – showing they are not inclined to blame ‘frontline troops’ for recent economic woes.
It is those who take customer service seriously that are reaping the rewards and will continue to do so beyond the current economic gloom, says the Institute.
The UKCSI allows consumers to rate service across 13 public, private and third sectors — covering professionalism, quality and efficiency, ease of doing business, problem solving and timeliness.
Jo Causon said: “Striving to offer world-class customer service gives your business the best chance of getting out of the recession sooner — and stronger. Putting customers at the heart of your business improves employee performance, which increases corporate performance and makes organisations more competitive.
“We know individuals and businesses have less money to spend and are more careful where they spend it. Research shows that taking customer service seriously can produce 24 per cent more profit. Even a 5 per cent jump in customer loyalty can boost profits by between 25 and 85 per cent.”
Tourism is now Britain’s best sector for keeping customers content, with fish and chip shops and pubs also seeing a resurgence in customer satisfaction.
Utilities props up the table as the worst performing sector, with an overall UKCSI score of 66, with national Public Services and Telecoms also with work to do.
At a time when many consumers feel the need to tighten their belts, Utilities was the sector with the highest proportion (22 per cent) of customers changing their supplier. There was, however, a notable improvement in complaint handling in the sector, which rose to 63 per cent overall.
Top 10 success stories:
— John Lewis (90.9)
— Fire Service (89.8)
— Waitrose (87.1)
— M&S — food (87.0)
— Ambulance Service (86.4)
— Mazda (86.2)
— RAC (86)
— M&S — non-food (84.5)
— P&O Ferries (83.9)
— Center Parcs (83.8)
Visit: Institute of Customer Service [1 July 2009]
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Marks & Spencer's [LSE: MKS] latest financial statement (for the first quarter), showed Group sales had increased by 2.9 per cent, a rise that will (hopefully) help to relieve some of the tension that has been plaguing the retail industry, during these financially lean times.
The retailer reported improvements (in UK sales), across the board, in its Clothing (up 1.4 per cent), Home (up 0.1 per cent) and Food (up 2.0 per cent) divisions; whilst on-line sales were up by 28 per cent, as well as International sales which showed an increase of 15.9 per cent for the same period.
Sir Stuart Rose, Chairman said: “We are pleased with the improving trend in our performance. This demonstrates that the actions we are taking are working. Customers have responded well to our initiatives particularly our 125th anniversary campaign, and recently voted us the UK’s most trusted retail brand [according to a YouGov Survey carried out in May 2009].
“Consumer confidence appears to be stabilising. However, we remain cautious about the outlook for the remainder of this and next year and will continue to run the business accordingly.”
Marks and Spencer Group plc will report its Q2 trading (for the 13 weeks to 26 September 2009) on 30th of September 2009.
Visit: Marks & Spencer [1 July 2009] |
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