Jo Causon - Professional Planning Forum

Bridging the gap
People build success
#ppfconf
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©Professional Planning Forum 2014
Customer Strategy &
Planning 2014
28-29 April
Brighton
Institute of Customer Service
Jo Causon – chief executive
Customer Strategy & Planning 2014 - The value of customer
service to the UK economy-why it matters to us all
29th April 2014
www.instituteofcustomerservice.com
introducing the Institute of Customer
Service
we are:
• independent, not-for-profit membership body
• over 400 organisational members
• 80% from private, 20% from public and third sectors
• more than 4,000 individual memberships
we aim:
• to lead customer performance and professionalism
• to be the first port of call for all issues around customer service
we provide:
• advice, research, professional networks, products and services, awards,
national occupational standards, continual professional development and
conferences
some of our members added in the last
year
why customer service matters
why customer service matters
• 78% of UK GDP is generated by the service
sector
• 25% of manufacturing companies’ revenues
comes from services
• Over 70% of UK employees deal directly with
customers in their jobs
• 64% of global GDP is accounted for by the service
sector
the new order: from a transactional to a
relationship economy
customer not only king – also the kingmaker
• customer feedback is immediate and highly visible thanks to social media
• consumers have the power to shape image as never before
• social media today’s consumer watchdogs
• multi-channel challenge
• brand and reputational impact
we have all become more demanding
•
11.7% of customers had a problem. This has fallen from 17% in 2008.
•
76% of customers who have had a problem make a complaint. This has increased
from 72% in 2008
•
The main reason why customers don’t make a complaint is because they “didn’t
think it would make any difference”
•
•
•
•
•
31% of all complaints cited staff attitude or staff behaviour
Satisfaction with complaint handling has increased from 3.5 (on a scale of 1 – 10)
in 2008 to 5.6
When a customers makes a complaint the most common response they receive is
“seemed uninterested” – cited in 35% of cases
There is a strong link between employee behaviour at first point of contact and
customer satisfaction with complaint handling
The most dissatisfied complainers tell on average over 5 people about their
experience.
Source :
Institute of customer service, handle with care: an analysis and toolkit to improve complaint handling, 2013.
customerofsatisfaction
has fallen
Institute
Customer Service
principal source: ICS UKCSI
survey January 2014
90
77.4
78.0
78.2
77.9
Jan-12
Jul-12
Jan-13
Jul-13
70
75.6
76.7
77.3
Jul-11
74.1
75.2
Jul-10
75
Jan-10
80
77.1 UKCSI Overall
72.0
Jan-14
Jan-11
Jun-09
65
Jan-09
Customer Satisfaction
Index
85
UK customer satisfaction levels
principal source: ICS UKCSI
survey January 2014
UKCSI: the top performers
principal source: ICS UKCSI survey January 2014
customer satisfaction drives sales growth
13 organisations analysed:
+2.6%
Like-for-like
sales growth
Financial year
2012/13
-0.3%
+0.3%
Like-for-like
sales growth
Financial year
2011/12
-1.5%
Above sector average UKCSI
Source: Institute of Customer Service,
Company financial reports
Below sector average UKCSI
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Argos
B&Q
Center Parcs
Costa Coffee
Currys / Dixons / PC World
Debenhams
Greggs / Bakers Oven
Homebase
JD Wetherspoon
John Lewis
M&S (non-food)
Premier Inn
WHSmith
customer service increases trust
9
when an organisation’s
UKCSI score increases
by 10 points (out of
100), their trust score
increases by 13
percentage points.
8
7
Trust rating for the
organisation (out of
10)
6
5
4
50
55
60
65
70
75
UKCSI
80
85
90
95
building customer confidence
Respondents who had a good
experience with customer-facing staff
Respondents who had a bad
experience with customer-facing staff
77%
62%
58%
51%
Bought the same product Bought a different product Stopped buying products Avoided this company
again from this company
from this company
from this company
when you have a choice
lessons
lessons from
from those
those getting
getting itit right
right
•
easy to do business with
•
consistent
•
address problems head on
•
investing in overall experience
•
good across all channels
•
knowledgeable
•
measure the right things
•
externally focused
the challenge
challenge isistotodo
with
less
the
domore
more
with
less
•
increased demands come against the continued pressure of spending
cuts
•
greater stress among the public
•
falling morale among staff
•
important we encourage and build customer focus
– led from the top
– programmes built with a core focus on service
– each customer is an individual and needs to be treated as such
– innovate to reduce cost but improve experience
– key is to help staff make the right judgement each time
Thank you
Jo Causon
Institute of Customer Service
www.instituteofcustomerservice.com
Bridging the gap
People build success
#ppfconf
GoldSponsor
Sponsor
Gold
©Professional Planning Forum 2014
Customer Strategy &
Planning 2014
28-29 April
Brighton