The Value of Great Customer Service

If your business cares about its bottom line, then offering great customer service should be non-negotiable. At Whistl, we’re proud that our annual customer satisfaction survey results continue to be overwhelmingly positive. But despite all the upsides of providing excellent customer care, UK-wide customer satisfaction levels continue to tumble.

January 2024 figures from the UK Customer Satisfaction Index report revealed that satisfaction levels are at their lowest point in nine years.

Given the intrinsic link between offering great customer service and increased revenues, this is an issue that’s now impossible to ignore.

Thankfully, there are processes and solutions available that help can turn the tide. By providing omnichannel contact centre services you can meet and even exceed customer service expectations, thereby boosting productivity and revenues.

In this updated research, we’ve examined the current landscape and plotted a path to customer success.

Table of Contents

• The state of UK customer satisfaction

• How does customer satisfaction impact business performance and buyer behaviour?

• How does the use of technology and different channels impact customer satisfaction?

• What can you do to improve customer satisfaction?

The state of UK customer satisfaction

The UK Customer Satisfaction Index (UKSCI) is a bi-annual measurement conducted by The Institute of Customer Service. The report takes an objective view on the state of customer satisfaction across 13 sectors, including Retail (Food & Non-Food), Automotive, Banking and Telecommunications. Scores are based on customers’ responses to over 26 measures, covering transactional experiences and relationship management, with these collated into five key dimensions:

• Experience
• Complaint Handling
• Customer Ethos
• Emotional Connection
• Ethics

Its January 2024 update revealed that UK customer satisfaction levels dropped to 76.0 points (out of 100), equal with the lowest points total previously recorded in 2015.

This score also represented a 1.7-point decline on the previous year and is 2.4 points below its January 2022 level.

Worryingly, scores across each of the five key areas fell in the previous year with Complaint Handling witnessing the biggest decrease (-5.2 points) from 2023.

How does customer satisfaction impact business performance and buyer behaviour?

UKCSI research has shown that between 2017 and 2023, “companies with customer satisfaction at least one point higher than their sector average achieved stronger revenue growth, EBITDA and revenue per employee than others.”

When you further review the findings, it becomes clear how great customer service impacts upon buyer behaviour and fuels increased business performance.

Companies that are rated highly for their customer service benefit from greater trust, customer satisfaction and customer retention.

Impact on spending

• 27.6% of customers who rated an organisation 9 or 10 out of 10 for overall satisfaction will look to buy more products and services from that organisation, with over a fifth indicating that they are likely to spend more.
• 41% of the least satisfied customers (who rated an organisation between 1 and 4 for overall satisfaction) will seek to avoid dealing with that organisation in future. Over 20% feel they will spend less with the organisation and 8.7% are likely to give negative reviews.
• 31.3% of customers prefer excellent service, even if it costs more.

Impact on trust

• 82.5% of customers whose overall satisfaction with an organisation is 9 or 10 out of 10 also indicate very high levels of trust.
• By contrast, just 17.1% of those who rate an organisation 7 or 8 out of 10 for customer satisfaction display high levels of trust.

Impact on business performance

• 28 average days per month spent by full-time employees dealing with problems, complaints or service failures.
• £7.1bn modelled monthly cost to UK organisations of employees’ time in dealing with problems, complaints and service failures.

How does the use of technology and different channels impact customer satisfaction?

The way customers interact with companies has changed markedly since the Covid-19 pandemic with technology and digital communication even more prominent. Multichannel customer service can provide customers with more flexible options for communicating with businesses, but these channels must be used effectively.

In January 2024, 34.2% of customer experiences were conducted in-person, an 8.6% fall on figures from four years earlier.

Meanwhile, email interactions with a customer service advisor have grown from 6.5% in January 2020 to 11% in 2024.

It’s also worth noting that customer satisfaction levels can differ greatly according to channel and how different channels are typically used.

For example, actions such as making a purchase or checking an account statement via an app receive higher satisfaction scores than experiences over the phone, email or webchat. This is significant as typically these channels will involve someone asking a question or making a complaint.

The subject of technological advances also forms part of the UKCSI findings, and one which plays a critical role in the future of customer service.

Engaging with artificial intelligence (AI)/chatbots is now a common and accepted way for customers to interact with companies.

However, research suggests that the role of the human customer service advisor is still crucial to providing a positive customer experience.

While communicating with AI/chatbots is regarded as being convenient, a customer service employee’s ability to provide a quick resolution and correct information is still rated more highly.

The increasing adoption of AI and emerging technologies will continue to play a role within the customer experience. But the effective use of technology within your customer service stack will be the differentiator.

• Over 50% of customers said that it was still necessary to speak to a person after engaging with an organisation through AI/a chatbot.
• 35.2% of customers who’ve received a positive experience using technology would use that organisation again.
• However, 45.4% who’ve experienced poor use of technology would avoid that organisation in future.

What can you do to improve customer satisfaction?

The ICS has highlighted the core elements to focus on to achieve consistently high levels of customer satisfaction.

By recognising the impact of customer service upon business performance, you’ll be able to act accordingly to address problem areas and enhance overall satisfaction.

Maintain the core customer proposition: Your core proposition should be clearly articulated across the organisation with an understanding of existing capability and any investment required to deliver it effectively. Measure the consistency of your customer experience across your touchpoints and channels.

Leadership and long-term focus: Your business leaders should be modelling a customer-focused ethos, while communicating the financial and reputational benefits of investment in customer service.

Enable a personal connection: Find the right blend between offering self-service options to answer FAQs while making it easier for customers to contact the right person for urgent or more complex requirements.

Develop the right skills and behaviours: The role of the customer service advisor is changing. Ensure your agents are continually upskilling their technical and functional capabilities, as well as their personal and problem-solving skills.

Deal with complaints quickly and effectively: Complaints affect satisfaction scores, brand reputation and productivity. Dealing with them effectively and reducing the number of complaints should always be top of mind.

Prioritise relevant and authentic engagement: Customers want to receive relevant, accurate and straightforward information. This helps them with decision-making, provides reassurance and can enhance spending.

Develop and retain employees: An engaged workforce that feels invested in your company is key to delivering customer success. Companies that can offer flexibility and opportunities to develop will succeed in an increasingly diverse customer service environment.

Act with integrity: Customer satisfaction, business performance and governance are strongly interlinked. Companies that set clear goals and act with integrity tend to be more profitable and productive.

The breakdown above is only a snapshot of the UKCSI report on declining customer satisfaction levels and its impact on business performance and buyer behaviour.

Ultimately, companies that make customer service an essential part of their business operating model will be more likely to build brand affinity and achieve growth.

Make every conversation intelligent and empathetic with Whistl Contact Solutions

Get real results when you work alongside contact centre professionals that care about your customers.

Whistl Contact Solutions provides tailored contact centre services designed to support inbound call centre services and outbound customer contact channels.

Does your business have complex requirements, demanding customers and challenging objectives?

Our UK-based team of highly-trained agents provides uniquely human customer service experiences across call handling, email, social media and Live Chat. Bringing authenticity, empathy and personalisation into every conversation.

Whether you require a bureau call centre for seasonal requirements or full contact centre outsourcing solution, we can scale to meet your needs.

Benefits of Whistl Contact Solutions:

• Scalable: dial the service up and down utilising our 350+ strong team.
• Partnership approach: we consult with you to find the solution that’s right for your business. We enjoy client relationships spanning 14+ years and will match our approach to your brand culture and ethos.
• Clear reports and visibility: we track and set KPIs that aim to minimise customer contacts and deal with enquiries more effectively.
• Easy set-up: we can integrate seamlessly into your systems using one single point of contact. Plus, there’s zero set-up costs!
• Happy colleagues, happy customers: our team boasts long tenure and low turnover owing to our continual investment in our people. All of which translates to a superior customer service.

Learn more about the benefits of outsourcing a customer service call centre, or get in touch to discuss your requirements and give your customers the exceptional service they demand.

Last Updated: March 2024

Originally Published: July 2022