Home Money Poor service costs businesses £7.3bn every month, report reveals

Poor service costs businesses £7.3bn every month, report reveals

0 comments
Tip: Jo Causon, chief executive of ICS, said companies that score well on customer satisfaction generally

Poor service is costing British businesses £7.3bn a month, undermining the drive to deliver growth, figures show.

A report will reveal tomorrow that 69 per cent of workers face service failures, for which their own companies and others are responsible.

Employees spend an average of four days resolving issues, the report based on the latest UK Customer Satisfaction Index (UKCSI) shows.

And the cost of poor service amounts to £7.3bn in wages a month, or £87.6bn a year. The worst offenders are the media, telecommunications and transportation sectors.

Tip: Jo Causon, chief executive of ICS, said companies that score well on customer satisfaction generally “achieve stronger financial results.”

The Institute of Customer Service (ICS), which led the study, says the time spent remedying poor service is increasing.

Standards are falling at a time when the economy is under pressure, with UK productivity 18 per cent lower than the US.

Jo Causen, chief executive of ICS, said: “Service failures are costing billions every month in employee time and subsequent loss of income.”

He added that companies that perform well in customer satisfaction generally “achieve stronger financial results.”

DIY INVESTMENT PLATFORMS

Easy investing and ready-to-use portfolios

AJ Bell

Easy investing and ready-to-use portfolios

AJ Bell

Easy investing and ready-to-use portfolios

Free Fund Trading and Investment Ideas

Hargreaves Lansdown

Free Fund Trading and Investment Ideas

Hargreaves Lansdown

Free Fund Trading and Investment Ideas

Fixed fee investing from £4.99 per month

interactive inverter

Fixed fee investing from £4.99 per month

interactive inverter

Fixed fee investing from £4.99 per month

Get £200 back in trading fees

sax

Get £200 back in trading fees

sax

Get £200 back in trading fees

Free trading and no account commission

Trade 212

Free trading and no account commission

Trade 212

Free trading and no account commission

Affiliate links: If you purchase a This is Money product you may earn a commission. These offers are chosen by our editorial team as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investment account for you

You may also like