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.

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.”