Despite the prevailing cost-of-living crisis, a recent report from The Institute of Customer Service unveils a surprising trend among UK consumers. A third of customers in the UK express a willingness to pay a premium for goods and services, emphasising the value of excellent customer service. However, the report also signals a concerning decline in overall customer satisfaction levels, reaching their lowest point since 2015, indicating that customers are actively choosing to disengage due to subpar service experiences.
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The latest UK Customer Satisfaction Index (UKCSI) sheds light on consumer priorities, with 31.3% of customers stating that they prioritise excellent service even if it comes at a higher cost when making purchasing decisions. On the flip side, poor service has significant repercussions for businesses, as 41% of dissatisfied customers avoid using the same business again, and a mere 1.5% express a willingness to increase spending with such businesses in the future.
When asked why they would pay more for excellent service, customers cited trust in the company (31%) and access to support and advice (30%) as the primary motivators. This underscores the significance of building and maintaining trust in fostering customer loyalty.
The report emphasises the substantial returns for organisations prioritising exceptional service. Businesses with higher satisfaction scores also demonstrate higher earnings (EBITDA) – 10 percentage points higher on average – and increased staff productivity (average revenue per employee: £717,739 for above average vs £297,025 for below average) over the last 5 to 6 years compared to their competitors.
More information:
The Institute of Customer Service
www.instituteofcustomerservice.com