Satisfaction Index
The state of customer satisfaction in the UK
July 2014
foreword
The July 2014 UKCSI shows a third consecutive fall in customer satisfaction. Almost half the organisations included in the index have seen a drop in their customer satisfaction by at least one point compared to a year ago, including companies who have consistently been amongst the highest rated by customers. At a time when the economy is beginning to grow, this should be a major concern for organisations.
There are a number of factors which may account for the falling trend in customer satisfaction. Customer expectations are continuing to rise and their needs are evolving more rapidly, with convenience, ease of doing business and speed seen as particularly important. For the first time, this UKCSI report shows the levels of satisfaction by age group; the fact that younger people are on average less satisfied than older age groups suggests that customer expectations will continue to rise in future. As demand and confidence grow, organisations may be tempted to shift their priority away from retaining customers through focusing on customer experiences, towards more emphatically increasing customer numbers and market share. However, evidence from the UKCSI continues to point to clear and consistent linkages between high levels of customer satisfaction and trust, loyalty, likelihood to
remain a customer, and in the Retail food sector in particular, higher sales growth.
We are now in a genuine relationship economy in which organisations’ success will increasingly be determined by the quality of their relationships – with customers, suppliers, partners and inside organisations. These UKCSI results confirm that the bar for customer satisfaction has risen and in an era of falling customer satisfaction there will be winners and losers.
So how should organisations respond to this changed environment? It will be important to invest in customer insight and apply it with greater speed and agility as customer needs and preferences evolve. Ease of doing business and convenience have a growing resonance and need to be embedded in the experiences organisations offer their customers. Customer service skills, capabilities and standards need to be reviewed continuously to ensure that they are current and relevant in a context of heightened customer expectations. Above all, there needs to be a strategic leadership commitment to customer service and a focus on the whole customer experience, especially in sectors where multiple partners and entities are involved in providing service to customers. Now is a time for organisations to hold their nerve and maintain focus on the customer experience. Those that do so will be best positioned to benefit from the sustainable and tangible business benefit of customer service.
Joanna Causon
contents
Key findings 3
Customer satisfaction: the state of the nation 4
Why is customer satisfaction falling? 12
Why customer satisfaction matters: the business impact 20
UKCSI key facts 27
Organisations included in the July 2014 survey 28
About UKCSI 29
Also available 30
Other Institute research 31
Customer satisfaction falls - again
The July 2014 UKCSI results confirm the downward trend in customer satisfaction at the national level. The index registered its third consecutive decline and at 76.3 (out of 100) is now 1.9 points below the January 2013 peak of 78.2.Satisfaction drops for most sectors
Customers’ satisfaction levels declined across 12 of the 13 sectors covered in UKCSI. The exception was the Utilities sector, which saw a small increase (of 0.4 points) in customer satisfaction between January 2014 and July 2014. Nonetheless, Utilities remains the lowest scoring sector. Retail (Non-food) continues to be the highest performing sector in UKCSI.Relatively few organisations are raising
satisfaction levels
Of the 197 named organisations featured in UKCSI, only 28 increased their score by at least one point compared to July 2013. But 96 have seen their score fall by more than one point over the same period.
Consistent high scores at the top of the
UKCSI rankings
John Lewis tops the UKCSI ratings for July 2014 with a score of 87.7. It is followed by two other consistent high scorers, Amazon and First Direct. But 37 of the top 50 organisations for customer satisfaction have seen a fall in their score in the past year. Dwr Cymru (Welsh Water) is the organisation with the largest increase in its UKCSI score (+6.7 points) over the past year.
Older customers are on average much
more satisfied than younger ones
Customers aged 65 and above have an average customer satisfaction score of 80.3 compared to 72.5Most customers want a balance of cost
and service, with at least a minimum
threshold level of customer service
When faced with the choice, 60% of consumers favour a balance of price and service and will not accept low service levels in exchange for a cheap deal. A substantial minority of consumers – 24% – seek excellent service and are prepared to pay for it.Customer service builds trust
By delivering an increase of 10 percentage points in its customer satisfaction score, an organisation can expect on average an increase of 12 percentage points in the trust ratings from its customers.
Customer service drives loyalty
Organisations with high UKCSI scores have significantly larger numbers of customers who are very likely to remain as customers, compared to those organisations with lower levels of satisfaction.
Customer service drives recommendation
55% of highly satisfied customers stated that they had recommended the organisation in question. Recommendation rates drop below 15% for satisfaction ratings below 6 (out of 10).Customer service drives sales in the retail
food sector
For the fifth consecutive period, the average year-on-year sales growth delivered by food retailers with a UKCSI score above the sector average is better than that of the below average competitors, by a margin of 3%.
key findings
customer satisfaction:
the state of the nation
Customer satisfaction in the UK has fallen for the third consecutive six-month period. The July 2014 UK Customer Satisfaction Index (UKCSI) – the average of all customer responses in the Institute of Customer Service’s six-monthly customer survey1 - dropped by 0.8 points, to 76.3 (out of 100), from 77.1 in January
2014. We are now seeing a marked downward trend in the satisfaction of UK customers.
1. The UKCSI survey is run twice each year, in May and November. The results are published in the July and January editions of the report.
The national UKCSI score, 2009 to 2014
UK Customer Satisfaction Index (UKCSI)
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14
70 71 72 73 74 75 76 77 78 79 77.1 77.9 78.2 78.0 77.4 77.3 76.7 75.6 75.2 74.1 72.0 76.3
UKCSI performance by sector
The fall in customer satisfaction applies to all sectors except Utilities, which achieved a small increase of 0.4 points between January 2014 and July 2014. However, it remains the lowest-scoring of the thirteen sectors in the UKCSI, with an average rating of 69.4.
The biggest drops in satisfaction by sector were seen in Leisure (-1.3), Insurance (-1.3) and Services (-1.4). For the first time since the UKCSI began in 2008, satisfaction with the Insurance sector has fallen behind satisfaction with Banks & Building Societies.
It should be noted that the Services sector score has been affected by the UKCSI reclassification of Royal Mail (from Public Services (National) to Services) following the government’s sale of a majority share of the organisation. The score in Services excluding Royal Mail was 80.1, a drop of just 0.1 compared to January 2014.
UKCSI scores by sector
Jul-14 Jan-14 50 60 70 80 90 100 82.2 Retail (Non-food) 80.9 Retail (Food) 79.8 Tourism 79.7 Automotive 79.6 Leisure 78.8 Services 77.7 Banks & Building Societies
77.6 Insurance
72.2 Telecommunications & Media
72.1 Transport
71.9 Public Services (Local)
70.9 Public Services (National)
69.4 Utilities
Customer service performance of organisations
Amid the overall drop in satisfaction, there is significant variation in customer satisfaction performance among the 197 named organisations featured in the UKCSI. Only 28 organisations increased their score by at least one point compared to July 2013. But 96 have seen their score fall by more than one point over the period.
Evidence from the UKCSI suggests that there are four broad segments of organisations, in terms of customer satisfaction:
Segment Business impact
Organisations with consistently high customer satisfaction ratings
Remain well placed to benefit from customer
recommendation, loyalty and trust, but are potentially vulnerable to rising customer expectations and rapidly changing needs
Organisations that have seen significant recent improvement in their customer satisfaction
Well positioned for sustainable business success provided they retain a focus on customer service and satisfaction
Organisations whose customer satisfaction is around or below the average for their sector and is relatively stable
Likely to be vulnerable to rising customer expectations and rapidly changing needs and preferences
Organisations whose customer satisfaction ratings have declined
Likely to experience challenges in maintaining customer trust, loyalty and recommendation, with potentially damaging consequences for sustainable business performance
Top 50 named organisations UKCSI score July 2014 UKCSI score July 2013 Change in UKCSI July 2013 - July 2014 UKCSI Rank July 2014 UKCSI Rank July 2013 John Lewis 87.7 90.8 -3.1 1 1 Amazon 87.6 89.0 -1.4 2 2 First Direct 86.3 87.2 -0.9 3 4 Tesco Mobile 85.8 82.6 +3.2 4 31
Marks & Spencer (Food) 85.6 86.7 -1.1 5 5
Waitrose 85.0 88.5 -3.5 6 3
Specsavers 84.4 n/a 7
Aldi 84.2 86.2 -2.0 8 8
Next 84.0 82.2 +1.8 9 35
Nationwide 83.5 83.7 -0.2 10= 23
The Co-operative Bank 83.5 86.7 -3.2 10= 5
Pret A Manger 83.4 n/a 12
Center Parcs 83.3 78.9 +4.4 13 89 Argos 83.0 83.7 -0.7 14= 23 LV= 83.0 83.3 -0.3 14= 27 Boots 82.9 81.8 +1.1 16 44 Toby Carvery 82.8 83.7 -0.9 17 23 Skoda 82.7 85.6 -2.9 18= 10 Tesco Bank 82.7 76.4 +6.3 18= 123 Mercedes Benz 82.6 84.4 -1.8 20 18 Greggs/Baker's Oven 82.5 84.8 -2.3 21= 14 Honda 82.5 84.7 -2.2 21= 15 Iceland 82.1 85.8 -3.7 23 9 P&O Cruises 82.0 78.6 +3.4 24= 94 Premier Inn 82.0 82.1 -0.1 24= 37 Hyundai 81.8 81.5 +0.3 26= 48 Morrisons 81.8 80.9 +0.9 26= 58 eBay 81.7 82.8 -1.1 28 29 P&O Ferries 81.6 81.9 -0.3 29 41 Kia 81.5 84.6 -3.1 30= 17 Superdrug 81.5 n/a 30= Marriott 81.4 85.3 -3.9 32= 12
John Lewis and Amazon continue to be the highest ranked organisations for customer satisfaction. John Lewis has reclaimed the no.1 position in UKCSI in July 2014, having been placed no.2 in January 2014. This is despite its score being 3.1 points lower than a year ago.
John Lewis receives consistently high scores across all customer experience metrics in UKCSI. Its ratings in the area of “Professionalism” - driven by customers’ experiences with staff commonly rated
as helpful, friendly and competent - are particular strengths. Amazon meanwhile has emerged as a leader in the areas of “Ease of doing business” and “Timeliness”.
Two organisations appear in the top 10 for the first time. Specsavers makes its first appearance in UKCSI and Tesco Mobile’s ratings have continued to improve, making it the fourth highest ranked organisation.
Top 50 named organisations (continued) UKCSI score July 2014 UKCSI score July 2013 Change in UKCSI July 2013 - July 2014 UKCSI Rank July 2014 UKCSI Rank July 2013 Subway 81.4 82.4 -1.0 32= 34 RAC 81.3 81.1 +0.2 34= 55 Sainsbury’s 81.3 82.5 -1.2 34= 33 Hilton 81.2 84.2 -3.0 36 21 Autoglass 81.1 81.9 -0.8 37 41 BMW/Mini 81.0 82.0 -1.0 38= 40 Toyota 81.0 82.8 -1.8 38= 29 Asda 80.9 82.2 -1.3 40= 35 Audi 80.9 84.3 -3.4 40= 20 Costa Coffee 80.9 82.1 -1.2 40= 37 Wilkinson 80.9 83.5 -2.6 40= 26
Yorkshire Bank 80.9 n/a 40=
Northern Ireland Electricity 80.8 77.1 +3.7 45 114
Marks & Spencer (Non-food) 80.7 86.7 -6.0 46 5
Pizza Express 80.6 81.8 -1.2 47 44
AA 80.5 81.0 -0.5 48= 57
Caffe Nero 80.5 82.1 -1.6 48= 37
SAGA Insurance 80.5 83.9 -3.4 48= 22
The most improved organisations
A number of organisations have defied the national trend of declining customer satisfaction. Ten organisations recorded a UKCSI score improvement of more than 3.5 points between July 2013 and July 2014.
These top 10 improvers represent a range of sectors and business models. A number of them are from sectors which are not among the highest performing for customer satisfaction. Their performance demonstrates that despite the influence of economic conditions and rising customer expectations, it is possible to improve customer satisfaction by focusing on customer experience and service.
Top 10 most improved organisations UKCSI July 2014
UKCSI July 2013
+/- Sector
Dwr Cymru (Welsh Water) 76.9 70.2 +6.7 Utilities
Tesco Bank 82.7 76.4 +6.3 Banks and Building Societies
HM Passport Office 77.4 72.3 +5.1 Public Services (National)
Homeserve 75.2 70.4 +4.8 Services
Center Parcs 83.3 78.9 +4.4 Tourism
East Midlands Trains 75.9 71.7 +4.2 Transport
First ScotRail 74.0 69.9 +4.1 Transport
Butlins 80.1 76.3 +3.8 Tourism
Northern Ireland Electricity (NIE) 80.8 77.1 +3.7 Utilities
Sustained improvement in customer satisfaction
Short term improvements in customer satisfaction are an encouraging indicator of future performance, but realising the business benefits of better customer service requires a sustained and consistent focus. The three organisations with the largest rise in customer satisfaction over the past five years (since July 2009) are:
• Northern Ireland Electricity, up 13.8 points
• Homeserve, up 10.6 points
• Nationwide (Building Society), up 7.1 points
The chart illustrates the UKCSI score improvement achieved by these three organisations. These are shown alongside John Lewis, Boots and Premier Inn. These are three of the twelve organisations that have received scores of more than 80 (out of 100) in every set of UKCSI results since July 2009, an achievement which indicates sustained high levels of customer satisfaction2.
2. In total 110 named organisations have received UKCSI scores in all 11 surveys from July 2009 to July 2014. Of these 110, 12 have received a UKCSI score of 80 or above in every survey during this five-year period. There are two organisations that have received a UKCSI score above 80 in 10 of the 11 UKCSI results since July 2009, and which did not appear in just one set of results; these are First Direct and Saga Insurance. Amazon have appeared in all five sets of UKCSI results since January 2012 and have scored over 80 on each occasion.
60 65 70 75 80 85 90 95
Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14
UKCSI Score
John Lewis Boots Premier Inn
Nationwide
Northern Ireland Electricity Service (NIES) Homeserve
UKCSI performance over five years for selected organisations
Organisation Sector
The AA Services
Asda Retail (Food)
Boots Retail (Non-food)
Hilton Tourism
John Lewis Retail (Non-food)
Marks & Spencer (food) Retail (Food)
Marks & Spencer (non-food) Retail (Non-food)
Marriott Tourism
Premier Inn Tourism
RAC Services
Toby Carvery Leisure
Waitrose Retail (Food)
why is customer
satisfaction falling?
The January 2014 UKCSI report suggested a number of factors which may help explain why customer satisfaction has fallen since January 2013, having previously risen continuously from 2008. Feedback from a number of our members has amplified this analysis:
• Cuts in business and public sector investment prompted by the prolonged economic downturn may have had a negative impact on the customer experience at many organisations
• As growth returns to the economy, there is a temptation for strategic focus to shift from retaining customers through a deliberate focus on customer service to aggressive and rapid growth in customer numbers and market share
• Customers’ expectations of service are rising. They are better informed and often have greater choice. They have become less tolerant and more demanding of the organisations they deal with and are highly selective about where, and if, they buy. When customers are dissatisfied they are increasingly likely to express or escalate it through social media
• Customer needs and preferences are evolving. Convenience, ease of doing business and speed are becoming increasingly important
• The issue of trust has remained firmly in the spotlight - organisations in a range of sectors have come under intense scrutiny over their business practices, their responsiveness to customer and public concerns and their ability to manage crisis situations.
We have examined a number of factors which are shaping the context for customer service in the UK. These include expectations and satisfaction levels by customer segment; how customers interpret the relative importance of price and service; and customers’ emotional response to the organisations they deal with.
Customer needs and expectations
Customer satisfaction varies by customer segment
Customer satisfaction is significantly higher, on average, among older people. Indeed, levels of customer satisfaction rise progressively with each age cohort. One possible explanation is that younger people’s expectations are driven at least in part by the ease of doing business and wealth of information they are accustomed to in the online world. They may therefore be more demanding and less tolerant with the service they experience across a wide range of sectors.
There are also notable differences in the UKCSI scores of different socio-economic groups, though they are less pronounced than those for different age groups. Individuals in the “A” socio-economic group, which includes senior professionals and managers, are on average less satisfied than those in the C2, D and E groupings. In some cases the age and socio-economic profiles collide; the lower age profile of the C1 group (typically administrative and clerical workers) may contribute to the average satisfaction score for this group being lower than that for the B group (typically managers, administrators and professional people at intermediate levels).
A 76.1 B 77.9 C1 77.6 C2 78.5 D 78.6 79.5 E 18 - 24 72.5 25 - 34 74.4 35 - 44 75.9 45 - 54 76.0 55 - 64 77.4 80.3 65+
UKCSI score by age group UKCSI score by socio-economic group
There are a number of implications for organisations in the customer satisfaction differences between customer segments:
• Organisations need to develop a deep understanding of the needs and preferences, across the whole customer experience, of the customer segments they serve
• The relatively lower levels of satisfaction in younger age groups suggest that, now and in the future, organisations will continue to be challenged by rising customer expectations
• Organisations that serve a wide range of customers, of different ages, and from different socio-economic groups, will find it difficult to raise their overall satisfaction unless they understand and respond to the different preferences and expectations of all customer segments, including the most demanding.
Customers’ attitudes towards the
relative importance of price and customer service
Price is an important facet of customer satisfaction for most customers, but there are distinct differences in the way customers weight the relative importance of price and service. UKCSI asks customers to rate how they balance price and service by providing a score from 1 to 10, where 1 = “no frills service and low price” and 10 = “excellent service and high price”.
The majority of customers will not accept a low level of service in return for a better deal. Faced with the choice, they opt for a balance of service and value, seeking at least a minimum threshold level of customer service. There is a notable minority of customers – just under one quarter – who are seeking excellent service and will pay a premium price for it, as well as a segment (15% of customers) who are primarily motivated by low pricing.
1 5% 4% 6% 7% 19% 17% 17% 13% 6% 5%
No frills service and low price
% of all customers
Excellent service and high price
2 3 4 5 6 7 8 9 10
Price vs service score
(1 = “no frills service and low price”,
10 = “excellent service and high price”)
% of customers surveyed3
Characteristics of this segment
1 to 3 15%
• These customers are driven to secure the cheapest deals
• They are likely to shop around and switch between sup-pliers
• They may be prepared to compromise service levels to get the cheapest deal
4 to 7 60% These customers favour a reasonable balance of price and service, but require at least a minimum level of service
Sector 1 to 3 4 to 7 8 to 10
Automotive 10% 62% 27%
Banks and building societies 17% 61% 21%
Insurance 15% 63% 22%
Leisure 13% 59% 27%
Retail (Food) 16% 58% 26%
Retail (Non-food) 14% 59% 27%
Services 11% 60% 28%
Telecommunications and Media 15% 65% 20%
Tourism 10% 59% 31%
Transport 17% 62% 20%
Utilities 24% 58% 18%
Price vs service score (1 = no frills service and low price; 10 = excellent service and high price)
There are marked differences in price / service preferences in different sectors. In the Utilities and Telecommunications sectors, there are significantly larger proportions of customers who prioritise lower pricing and fewer who say they will pay more for excellent service. By contrast in the Automotive, Leisure, Retail, Services and Tourism sectors, there are higher than average numbers of customers who place a high value on service and say they would be prepared to pay more for it.
What customers think and feel about organisations
Customers were asked to provide three adjectives to describe their experience with the organisation they had dealt with. The most common adjectives are “easy”, “friendly” and “helpful”. This serves as a reminder that, even in a context of declining overall satisfaction, most customers are satisfied, most of the time, with the service they receive.
There are qualitative differences in the service experience between sectors. In Retail (Non-food), there is a strong emphasis on ease of doing business and speed - “easy”, “quick” and “helpful”. In Retail (Food), “friendly” is the most frequently cited adjective, but “easy” is becoming prevalent, reflecting the growing use of convenience formats and online-enabled home delivery.
Customers use a number of positive adjectives, including “friendly” and “helpful”, to describe their experiences with Local and National Public Services. However, in both sectors the relatively low frequency of “easy” suggests these sectors may need to focus more on keeping up with customers’ expectations around ease of doing business.
In the Utilities and Transport sectors, the word “expensive” is cited much more frequently than in other sectors, reflecting the relative significance of price as a driver of satisfaction in these sectors.
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satisfaction matters:
the business impact
For individual organisations
The link between customer satisfaction and future business performance means that those organisations with high and / or improving satisfaction will be much better placed to take advantage of increasing customer demand than those with weaker levels of satisfaction
For the UK economy
There is a risk that falling levels of customer satisfaction in the UK may impact negatively on the country’s reputation as an attractive place to invest and do business. Moreover, the ability of UK companies – in all sectors - to benefit from growing demand in global markets is underpinned by the customer experience they offer.
The declining trend in customer satisfaction has important implications for business performance in two key respects:
Measure Business impact The evidence
Trust • Central to an organisation’s ability
to retain and acquire customers
• Affects an organisation’s ability to
collaborate effectively with partners and suppliers
• Influences reputation with the
media and analysts, with potential implications for shareholder value and ability to raise investment funds
An increase of 10 percentage points in an organisation’s UKCSI score, cor-relates to an average increase of 12 percentage points in the trust rating from its customers
Loyalty • Enables retention and increased
spend from existing customers
• Organisations achieving relatively
high UKCSI scores (more than 82.5 points out of 100) benefit from high levels of customer loyalty. 88% of their customers score 9 or 10 out of 10 when asked to rate their liklihood of remaining a customer
• An organisation with a UKCSI
score below 77.5 can expect less than one third of its customers to show these high levels of loyalty
Measure Business impact The evidence
Recommendation A leading indicator of future growth • The majority of customers (55%)
who gave an organisation an
overall satisfaction rating of 9
or 10 points (out of 10) in UKCSI
stated that they had subsequently recommended the organisation
• Just 29% of customers who gave
an organisation a rating of 7-7.9
had given a recommendation
• Average recommendation rates
drop below 15% for satisfaction
ratings below 6
Sales growth in the Retail food sector Drives the organisation’s growth and
market share in a competitive market where customer spend is tight
During 2013 and 2014 there has been a consistent link between customer satisfaction and sales growth
• The sales growth delivered by the
food retailers with a UKCSI score above the sector average has been better than that of the below average competitors by a margin
of at least 3%
• The combined market share of
companies with a higher than average UKCSI has grown, while the combined share of the below average UKCSI organisations has decreased
Year on year sales performance in the 12 weeks to 25 May 2014
• Food retailers with a July 2014
UKCSI score above the sector
average (80.9 points) achieved
average growth of 8%
• All companies with a UKCSI score
above the sector average increased sales, except Morrisons which registered a fall in sales of
4%
• Food retailers with UKCSI scores
below the sector average delivered
average growth of 5%. However,
the performance of Lidl, whose
sales growth was 23%, was a
significant influence on this figure. Without Lidl, the below-average organisations registered an
Customer satisfaction and trust
50 4 5 6 7 8 9 10 55 60 65 70 75 80 85 90Trust rating for the organisation (out of 10)
The 17 organisations scoring 8.2 (out of 10) or more for customer trust all have UKCSI scores that are considerably higher than the national average.
Most trusted organisations Trust score UKCSI Rank UKCSI Score
John Lewis 8.9 1 87.7
Marks & Spencer (Food) 8.8 5 85.6
Aldi 8.5 8 84.2 Amazon 8.5 2 87.6 First Direct 8.5 3 86.3 Waitrose 8.5 6 85.0 Boots 8.4 16 82.9 Next 8.4 9 84.0 Skoda 8.4 18 82.7 Tesco Mobile 8.4 4 85.8 Greggs/Bakers Oven 8.3 21 82.5 Honda 8.2 21 82.5 Hyundai 8.2 26 81.8 Iceland 8.2 23 82.1
Marks & Spencer (Non-food) 8.2 46 80.7
Pret A Manger 8.2 12 83.4
Wilkinson 8.2 40 80.9
Customer satisfaction drives loyalty
Customer satisfaction drives recommendation
UKCSI score of the organisation 10% 18% 26% 32% 38% 47% 88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Below 70.0 70.0 to 72.4 72.5 to 74.9 75.0 to 77.4 77.5 to 79.9 80.0 to 82.4 82.5 & above % of customers that are very loyal
(i.e. those scoring 9 - 10 for likelihood of remaining a customer
Customer’s satisfaction rating (1-10 scale) % of customers that have
recommended the organisation
1% 4% 5% 11% 14% 20% 29% 41% 55% 0% 10% 20% 30% 40% 50% 60% 1 - 1.9 2 - 2.9 3 - 3.9 4 - 4.9 5 - 5.9 6 - 6.9 7 - 7.9 8 - 8.9 9 - 10.0
Customer satisfaction and sales growth: the retail food sector
UKCSI score -10% -5% 0% 5% 10% 20% 30% 15% 25% 40% 35% 72 74 76 78 80 82 84 86Annual sales growth for the 12 weeks to 25th May 2014
Source: Kantar Worldpanel
Co-op (Food) Tesco Morrisons Sainsbury’s Iceland Asda Waitrose Lidl Aldi
Retail food year on year sales growth
5%
8%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
Organisations with above sector average UKCSI Organisations with below sector average UKCSI
Retail food year on year market share change UKCSI score -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 72 74 76 78 80 82 84 86 Co-op (Food) Tesco Morrisons Sainsbury’s Iceland Asda Lidl Waitrose Aldi
Annual market share change for the 12 weeks to 25th May 2014
Source: Kantar Worldpanel
Retail food year on year market share change
Organisations with above sector average UKCSI Organisations with below sector average UKCSI
-0.25%
0.10%
Number of years UKCSI has run, beginning in January 2008
Number of sectors UKCSI covers, 11 in the private sector as well as local and national public sector. Sector reports with a detailed breakdown of scores by sector and organisation are published for each sector.
Number of unique responses included in July 2014 UKCSI from 9,522 customers. Customers are geographically and demographically representative of the UK population and participate in the survey through an online panel. Customers are asked to provide a score for organisations based on their most recent interaction.
Number of individual organisations and organisation types which received a UKCSI rating. 197 named organisations which have exceeded a minimum sample size are scored in the 13 sector reports. In addition, scores are given for 16 generic providers including “your local Council”, “your local restaurant” etc.
Number of times per year UKCSI is published, normally January and July. To view the latest UKCSI results, please visit
www.instituteofcustomerservice.com/ukcsi
6
13
40,842
213
2
organisations included
in UKCSI July 2014
Automotive: Audi BMW/Mini Citroen Fiat Ford Honda Hyundai Jaguar Kia Land Rover Mazda Mercedes Benz Nissan Peugeot Renault Seat Skoda Toyota Vauxhall Volvo VWBanks & Building Societies:
Bank of Scotland Barclays First Direct Halifax HSBC Lloyds Nationwide NatWest RBS Santander Tesco Bank The Co-operative Bank TSB
Yorkshire Bank
Insurance:
AA Admiral
Aviva / Norwich Union AXA BUPA Churchill Direct Line Endsleigh Esure Hastings Legal & General LV= M&S More Th>n Nationwide Prudential SAGA Insurance Sainsbury’s Sheila’s Wheels Tesco
The Co-operative Insurance Virgin Money Zurich Leisure: Burger King Caffe Nero Cineworld Costa Coffee Domino’s Pizza Greggs/Baker’s Oven Harvester JD Wetherspoon KFC LOVEfilm McDonalds Odeon Pizza Express Pizza Hut Pret A Manger Starbucks Subway Toby Carvery Vue Cinema
Your local fish & chip shop Your local restaurant
Public Services (Local):
GP surgery / health centre Your housing association Your local Ambulance Service Your local council
Your local Fire Service Your local Police Service
Public Services (National):
DVLA HM Passport Office HMRC (Inland Revenue) Jobcentre Plus NHS / hospital service Post office Retail (Food): Aldi Asda
The Co-operative (food) Iceland
Lidl
Marks & Spencer (food) Morrisons Sainsbury’s Tesco Waitrose Retail (Non-food): Amazon Argos B&Q Boots Currys/Dixons/PC World Debenhams eBay H&M Homebase Ikea John Lewis Marks & Spencer Matalan New Look Next Poundland Primark Specsavers Sports Direct Superdrug WH Smith Wilkinson Services: AA Autoglass City Link DHL Enterprise Rent-A-Car Green Flag Hertz Homeserve RAC
Royal Mail / Parcelforce Timpson
Your local builder Your local dry cleaner Your local electrician Your local estate agent Your local hairdresser Your local painter & decorator Your local plumber Your local solicitor
Telecommunications & Media:
3 BT EE (Everything Everywhere) Giffgaff O2 Sky Talk Talk Tesco mobile T-Mobile Virgin Media Vodafone Tourism: Butlins Center Parcs Expedia Haven Holidays Hilton Holiday Inn Lastminute.com Marriott P&O Cruises Pontins Premier Inn SAGA Holidays Thomas Cook Thomson Travelodge Virgin Holidays Transport:
Arriva - Bus group British Airways East Coast East Midlands Trains easyJet
Eurotunnel First Capital Connect First Great Western First Group - bus companies First ScotRail
First TransPennine Express Flybe London Midland London Underground Monarch Airlines National Express Northern Rail P&O Ferries Ryanair South West Trains Southeastern Trains Stagecoach The Trainline.com Virgin Atlantic Virgin Trains Utilities: Anglian Water British Gas
Dwr Cymru (Welsh Water) E.ON
EDF Energy first utility
Northern Ireland Electricity (NIE)
Northumbrian Water npower
Scottish and Southern Energy (SSE) Scottish Power
Scottish Water Severn Trent Water South West Water Southern Water Thames Water United Utilities Wessex Water Yorkshire Water
about UKCSI
UKCSI (UK Customer Satisfaction Index) is the Institute of Customer Service’s national measure of customer satisfaction. It provides insights into the state and direction of customer satisfaction at a national level, across 13 key sectors and for individual organisations.
UKCSI was launched by the Institute of Customer Service in 2008. It provides a unique way of measuring the current customer satisfaction of UK customers, as well as trends over time.
Methodology
To create UKCSI, the Institute of Customer Service runs a large online survey of consumers twice a year:
• The July 2014 UKCSI results included in this report are based on 40,842 survey responses. Each response is a completed online questionnaire relating to the customer experience with a specific organisation
• These responses are provided by 9,522 individual customers. The respondents are representative of the UK adult population, according to region, age and gender.
UKCSI survey focuses on customers’ actual experiences of organisations. Respondents are asked to rate their experience of individual organisations they have dealt with in the previous three months. To do this they score a series of metrics on a scale from 1 to 10. These metrics relate to professionalism, quality and efficiency, ease of doing business, timeliness, problem solving and complaint handling. The metrics reflect the priorities that consumers rate as the most important elements of the customer experience, according to Institute of Customer Service research.
The UKCSI score for each organisation is the average of all of its customers’ satisfaction scores. Overall scores for each sector – and for the UK as a whole – are mean averages of all responses. Each published set of UKCSI results incorporates the data from the previous two surveys, which creates a rolling measure of the state of satisfaction. In the July 2014 results, therefore, the responses included are those from the UKCSI surveys completed in November 2013 and May 2014.
UKCSI sector reports
Sector reports are available for all 13 sectors covered in UKCSI at
www.instituteofcustomerservice.com/ukcsi
Use the sector reports to:
• Benchmark your organisation against others in the sector, using the detailed data on customer satisfaction, complaints and each of the customer priorities
• Identify the organisations rated highest for customer satisfaction in the sector and understand their service strengths, as viewed by their customers
• Compare the sector to others in the UK economy
• Identify which channels customers in this sector use and how satisfaction varies by sector
Business Benchmarking
UKCSI
Members of the Institute of Customer Service are able to benchmark themselves against the results of the UKCSI survey, using the Institute’s Business Benchmarking service. This provides detailed insights into an organisation’s service performance and comparisons against the highest scoring organisations in their sector.
Members of the Institute also have the option to benchmark themselves against business-to-business sector averages, where this is relevant to their business model and target market.
ServiceMark
ServiceMark is a national standard which demonstrates an organisation’s commitment to customer service.
ServiceMark provides an independent validation of an organisation’s achievement in customer service, identifies opportunities for improvement and learning and helps motivate and engage your employees.
ServiceMark consists of three elements:
Find out more at:
www.instituteofcustomerservice/servicemark
also available
Business Benchmarking UKCSI
Assesses how your customers rate your organisation against more than 25 priority measures of satisfaction
ServCheck
A unique assessment tool which provides insights into your employees’ engagement with your customer service strategy Assessment
Independent assessment including a report with recommendations for action planning
other institute
research
The power of service
How Utilities can improve customer focus and business performance.
Shows how Utilities can address the challenges and opportunities of a changing market by placing a renewed focus on the customer. Includes
frameworks and recommendations for improving customer satisfaction and enhancing trust and reputation.
Customers and citizens
Further Building the Case for Customer Service in the Public Sector.
This research examines the key challenges in delivering excellent customer service in the public sector. It provides organisations, including government, with recommendations for developing customer focus and delivering better outcomes for citizens.
Structures for success
How models of business ownership can influence customer service.
Examines whether some business models are better at delivering customer service than others. Highlights ways in which organisations can learn from other business model types in order to improve service, be they mutuals, PLCs, private companies, partnerships or franchises.
Are you being engaged?
2014
Employee engagement and its influence on customer satisfaction and buying behaviour.
This research demonstrates the importance of employee engagement as a driver of positive customer experiences and improved business performance. It updates research the Institute published in 2012 on this topic.
Visit: www.instituteofcustomerservice/research for more information and to access Institute research.
Institute of
Customer Service
The Institute of Customer Service is the UK’s independent, professional body for customer service, with over 400 organisational members and over 5,000 individual members. Our purpose is to enable organisations to achieve tangible business benefits through excellent customer service aligned to their business goals; helping individuals to maximise their career potential and employability by developing their customer service skills.
We provide a framework for our members to share and learn from each others’ service delivery experiences and offer wide-ranging support for continuous customer service improvement. As the professional body we are independent – setting standards so that our customers can improve their customers’ experiences and their business performance.
Key activities undertaken by the Institute include:
• Research and reports on the latest customer service trends and thinking
• Publication of the UK Customer Satisfaction Index (UKCSI) twice a year
• Benchmarking and diagnostic tools to identify areas for improvement by surveying customers and employees
• Training and accreditation programmes for customer service professionals
• Professional qualifications for individuals at all stages of their career
• Public policy development. For further information please visit www.instituteofcustomerservice.com
Carnival House 5 Gainsford Street London SE1 2NE T: 0207 260 2620 E: [email protected] instituteofcustomerservice.com
• Benchmark the customer satisfaction performance of leading organisations on a range of key metrics
• Identify the highest rated and most improved organisations for customer satisfaction
• Compare the customer satisfaction performance of 13 sectors
• See the link between customer service and business priorities including loyalty and trust
• Identify which channels customers use and how satisfaction varies by channel
Use the UKCSI sector reports to:
based on the experiences of customers in your sector
UKCSI sector reports are available for:
• Automotive
• Banks & Building Socities
• Insurance
• Leisure
• Public Services (Local)
• Public Services (National)
• Retail (Food)
• Retail (Non-food)
• Services
• Telecommunications & Media
• Tourism
• Transport
