Institute analysis finds food retailers with satisfied customers saw a sales growth of 10.7 %, compared to only 1.8 % for those with satisfaction falling below average. Customer service is therefore a driving force behind those who reaped the benefits of this sector growth – and those who fell behind.
This is supported by additional evidence mapping customer satisfaction against share price. Analysis of 42 major retailers over the past five years finds that in 60 % of cases, when customer satisfaction increases or decrease, share price follows suit. Morrisons fell in UKCSI score from July 2014 to January 2016, and saw dips in share price during the same period. Ocado has seen a downward trajectory of share price over the past three years, and has fallen five points in customer satisfaction since the beginning of 2015.
Jo Causon, Chief Executive of The Institute of Customer Service, said: “In each of the last 11 UKCSI reports, dating back to July 2012, we have consistently seen evidence that supermarkets with the highest customer satisfaction outperform the sector average for sales and market share. Although it seems obvious that customers are key to business performance, service strategy can often fall by the wayside in boardroom conversations. The UKCSI report offers a clear imperative to put customer satisfaction first.”
The power of customer happiness for safeguarding business performance does not only hold true in the retail sector. The UKCSI report additionally compares banks’ current account gains and UKCSI results, finding a relationship between high levels of customer satisfaction and gaining current accounts.
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