Customer satisfaction across the UK is at its lowest level since 2010 and is threatening the nation’s economic recovery, according to a report.
The latest UK Customer Satisfaction Index (UKCSI) stands at 75.8 out of 100, a drop of 0.8 points on a year ago and 2.6 points below its high of 78.4 in July 2022.
The report, which has measured customer satisfaction at more than 275 leading businesses since 2008, warned that persistent low levels of satisfaction had the potential to undermine the UK’s “already challenging” economic recovery.
Since 2019, the companies that have consistently secured the highest levels of customer satisfaction have achieved continued financial stability, it said.
This was particularly evident in the food retail sector, where companies with a UKCSI score at least one point above the sector average achieved annual average sales growth of 5.8% compared to a market average of just 2.9%.
Timpson scored the highest for customer satisfaction among individual companies, followed by Nationwide and John Lewis.
James Timpson, chief executive of Timpson, will be made a peer after being appointed by Prime Minister Sir Keir Starmer as Minister of State for prisons, parole and probation. The company has hired hundreds of former prisoners.
Continuing a trend from January’s findings, a third of customers preferred excellent service even if it cost more.
Some 65% of employees surveyed said they spent an average 3.3 days a month dealing with service failures or problems.
Jo Causon, chief executive of the Institute of Customer Service, said: “The UK Customer Satisfaction Index is the independent barometer for the health of the nation’s service levels.
“Unfortunately, the current outlook isn’t where we need it to be, despite our research showing that higher levels of customer satisfaction correlate with financial stability and growth.
“Business leaders need to understand the evolving needs and expectations of their customers, developing their organisations’ approach accordingly to unlock the sustainable growth the economy needs.
“The new government’s post-election business policy agenda should encourage all organisations to understand and serve customers better if we are to put our economy back on track.”
The UK Customer Satisfaction Index is a twice-yearly report based on 60,000 survey responses provided by more than 15,000 UK adult customers.