The latest results are out and make in the main for encouraging reading.
This month, the UKCSI, the national measure of customer satisfaction on the high street has seen an index 2 year high, reversing, for the second consecutive period the previous two year decline we saw between January ‘13 and ‘15.
39,000 customer responses were collated covering 296 organisations, which gave an overall index of 77.0 (out of 100) this month, up 0.8 points compared to July 2015 (76.2) and up one point compared to January 2015 (76.0).
However this is still below the all-time high of 78.2 seen in January 2013 so whilst it’s a positive sign, we’re not there yet in terms of customer recovery.
However of those 296 organisation, 96 saw an increase, whilst only 44 saw a decrease in results.
Other key highlights include;
- Amazon topping the charts with a score of 86.6, albeit down marginally (0.1) in the last 12 months. They displace First Direct who have held the top spot for a while now to 3rd place behind Utility Warehouse
- Retail (food) and Retail (non-food) still top the sectors
- Utilities as a sector shows the biggest increase with 1.9 points, albeit 12th from 13 sectors overall. Encouraging gains but not out of the woods just yet as 1 of 5 sectors below the average.
- Utility Warehouse (top of their Utility sector and straight in at 2nd place), Trailfinders (top of their Tourism sector)and RIAS (over 50’s insurance) all appear in the Top 50 for the first time
- T-Mobile sees the biggest increase at 9 points over the last twelve month which is a significant shift, a similar performance last seen by Lovefilm in July 2015 with an 8.2 point increase.
- Banks and Building Societies is the only sector down by over 1 point in the last twelve month
- Telecomms and Media still languish at the bottom with a sector average of 72.6
- The 25 and over 65 age groups remain the most satisfied
- As do the Welsh amongst areas in the UK, compared to the Southwest who saw a decline in satisfaction
- As are Women who are more satisfied in general than men (apart from in the Automotive sector)
- For the naysayers who still don’t believe that great experiences and high levels of satisfaction drive (financial) results, Food retailers with a UKCSI at least one point higher than the sector average achieved average sales growth of 7.6% compared to a drop in sales of 0.4% for those with a UKCSI at least a point below the sector average.
Customer preference by channel and method of interaction;
- In person (46.9%)
- Website (22.6%)
- Over the phone (20.2%)
However, when you look at the new channels of contact including apps and social media the results are not as I expected them to be;
- Out of all 13 sectors, apps only provide the highest levels of customer satisfaction in the Bank and Building Societies sectors although it’s unclear how widespread apps are deployed across the other sectors.
- Public sector local and national websites provide the least satisfying experiences (think HMRC – ok so maybe that’s not a surprise)
- Webchat only features in the Telecomms and Media sector and not for the right reasons being below average satisfaction
Nothing new here on this but goes to reinforce previous research and patterns of customer behaviour;
- Most customers (58%) use one channel of communication when they interact with organisations.
- A sizeable minority say that they use two (34.1%), but then there’s a marked drop off in usage (both overall and across sectors) to three (5.6%) or more than three (2.3%) channels.
- Customers who used three or more channels were much more likely to say that they had experienced a problem (27.7%) with the organisation in the previous three months and give them a lower customer satisfaction rating. This is 3x higher than those that use 1 channel.
I can personally testify to doing this with a company when I didn’t get the results I wanted by email and phone, before taking to twitter to complain. This is all about customer effort. More effort = less satisfaction.
Also at the end of 2015, the UKCSI reviewed the importance of customer priorities which was last reviewed in 2010 and there’s some noticeable changes across the – wait for it, 47 customer priorities.
The top 4 most important all relate to staff attitude with the 5th being complaint handling. In order they are;
- Staff competence (in person)
- Staff doing what they say they will do
- Staff competence (over the phone)
- Helpfulness of staff (in person)
- Handling of the complaint
Interestingly, value for money only features at 13th with price/cost at 20th.
And finally a word about the most important features of delivering a great customer experience; employees.
Employees’ friendliness, helpfulness and competence have become relatively more important in the eyes of customers over the last 5 years, as well as speed of service, especially when dealing with employees in person. Ease of doing business has also increased in importance along the theme of reduced customer effort we’ve discussed over the last 12 months.
All in all interesting times and a continuingly changing customer and business landscape where the agile, fleet of foot excel and the legacy industrial monoliths creak and groan. Here’s to a continued improvement and let’s see what the next 6 months brings.
You can download the report in full here
Source: UKCSI Executive Summary Results January 2016.