Poor service costs businesses £7.3 billion every month, the report shows
Poor service is costing British businesses £7.3 billion a month, undermining the drive for growth, figures show.
A report tomorrow will show that 69 percent of employees are experiencing service failures – for which their own and other companies are responsible.
Employees spend an average of four days solving problems, the report found, based on the latest UK Customer Satisfaction Index (UKCSI).
And the cost of service shortfalls is £7.3 billion in wages per month, or £87.6 billion per year. The worst offenders are the media, telecoms and transport sectors.
Opinion: Jo Causon, CEO of the ICS, said companies that score well on customer satisfaction tend to ‘deliver stronger financial results’
The Institute of Customer Services (ICS), which led the research, says the time spent resolving poor service is increasing.
Standards are deteriorating at a time when the economy is under pressure, with UK productivity 18 percent lower than the US.
Jo Causen, CEO of ICS, said: ‘Service disruptions cost billions in employee time and resulting lost revenue every month.’
She added that companies that score well on customer satisfaction tend to “deliver stronger financial results.”
DIY INVESTMENT PLATFORMS
A. J. Bell
A. J. Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund trading and investment ideas
interactive investor
interactive investor
Invest for a fixed amount from € 4.99 per month
Sax
Sax
Get £200 back in trading fees
Trade 212
Trade 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals have been chosen by our editors because we believe they are worth highlighting. This does not affect our editorial independence.