Business News Culture

End of customer service?

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More than 75% of Britons are frustrated with poor customer service, yet feedback requests flood in after every purchase or delivery. 

Changing face of customer service

Formerly regarded as leaders in customer service, brands such as BT and BA are now ranked among the lowest, receiving numerous complaints.

Poor customer service has become prevalent in the telecommunications and transportation sectors, with customers frequently encountering issues during broadband upgrades, flights, or train journeys. 

Survey results

The think-tank, The New Britain Project, published a report titled ‘computer says no.’ It found GP appointments to be the most frustrating public service, while energy and telecoms top the private sector frustrations. 78% regularly experience customer service frustration, with the hardest hit regions being Wales and the West Midlands.

The UK Customer Satisfaction Index’s January score is 76.1, unchanged from January 2024. Service failures cost UK organisations £3.7 billion monthly. Nearly a quarter of the 15,000 polled reported poor service in the past year. Which?, the consumer watch dog, reported that energy and telecoms customers lost 27.3 million hours and £298 million due to poor service.

Customer service heroes

Timpson, Starling Bank, Nationwide, John Lewis and Marks & Spencer food division excel in customer service. Four of these companies are not shareholder-owned, allowing them to focus on customer care rather than dividends. Consider if this approach were applied to the water industry.

Constant online reviews

As more businesses adopt chatbots and online reviews become standard practice, what seems like continuous surveillance is influencing our behaviour. According to a recent study by Power Reviews, 98% of consumers consider reviews an essential part of their decision-making process, with nearly half refraining from purchasing products or services that lack reviews or have negative reviews. 

This approach assumes the legitimacy of reviews, with retailers relying on labels such as ‘verified purchase’ to distinguish genuine feedback from inauthentic critiques. Negative reviews written by competitors, service providers avoiding individuals who leave critical feedback, and prompts for reviews immediately after delivery do not provide an accurate representation of the product or service.

Additionally, criticising a driver’s performance due to a poorly packaged parcel breaking open suggests that some companies may prefer to find scapegoats rather than address necessary improvements. Furthermore, customers threatening to leave bad reviews if their demands are not met further complicates the reliability of online reviews.

Bhanu’s view: Better feedback, better customer service

As consumers, if asked, we must provide feedback in the most effective way. A tip or thank you can have a real impact. Share positive experiences with friends. Not giving feedback also sends a message. Praise only those who merit it, despite frequent requests from platforms like Google. If unsatisfied, say so and seek better service. Shareholders will eventually notice that investment in customer service is essential to guarantee return on investment.

Bhanu Dhir

Columnist
Bhanu is a former charity CEO and has more than 40 years of experience transforming businesses. He is an ambassador for Acorns Children's Hospice.

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