Table of Contents
- The UK Customer Satisfaction Index measures service levels across 275 businesses
- The average level of customer satisfaction is at its lowest point since 2010
- Retailers and banks top the list for customer satisfaction
Customer service levels at the country’s largest companies have deteriorated, a report has found.
The latest UK Customer Satisfaction Index from the Institute of Customer Service revealed that satisfaction levels are at their lowest level since 2010.
The survey asked 60,000 people what they thought of customer service at 275 large companies.
No satisfaction: Customer service levels have hit a 14-year low
The latest report puts the customer service level at 75.8 points out of 100, 0.8 points lower than a year ago and 2.6 points below the maximum of 78.4 in July 2022.
Meanwhile, citizen satisfaction with companies’ handling of complaints fell by 8.1 points in July 2022, standing at 58.3.
Utilities remain among the worst offenders, scoring 69.8 out of 100, although they have improved by 0.3 points since July 2023.
Customer satisfaction with energy companies is higher than a year ago, and the number of customers experiencing problems has decreased.
However, satisfaction with water companies has fallen to 69.5 points, almost six points below the UK average.
Water companies have been hit by sewage spills and mounting debt that has contributed to higher bills.
Public services, both local and national, are also among the worst in terms of customer service, with 70.3 and 73.3 points respectively, according to the report.
HMRC’s long waiting times have come under particular scrutiny over the past year.
Which companies have the best customer service?
Retailers top the list for customer satisfaction, accounting for seven of the top 10 organizations in that sector.
Key cutting company Timpson saw its score improve from 83.6 in July 2023 to 86 points in July 2024, now offering the best customer service in the country according to the report.
John Lewis follows closely behind, with Waitrose, M&S and Greggs also in the top 10 with scores in the mid-80s.
Banks and retailers rank among the top 10 companies with the highest customer satisfaction
A handful of banks and building societies also feature, with Nationwide taking second place and Starling, Monzo and Yorkshire Building Society also scoring highly for customer service.
The report found that nine of the top 40 organisations are in the banking sector, up from six the previous year.
The (new) Government’s business policy agenda after the elections should encourage all organisations to better understand and serve customers if we are to get our economy back on track.
Crucially, the report found that banks and food retailers with higher satisfaction are recording better financial performance.
Jo Causon, CEO of the Institute of Customer Service, said: ‘Unfortunately, the current outlook is not what we need, even though our research shows that higher levels of customer satisfaction correlate with financial stability and growth.
‘Business leaders need to understand the changing needs and expectations of their customers and develop their organisations’ approach accordingly to unlock the sustainable growth the economy needs.
‘The (new) Government’s business policy agenda after the election should encourage all organisations to better understand and serve customers if we are to get our economy back on track.’
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