Press release

UK Businesses “Put the Customer Last” say Consumers

London » 26 Jan 2012 » Training Press Releases » The Ken Blanchard Companies

In a nationwide review of surveys undertaken by retail organisations, statisticians, consumer organisations and ombudsmen, The Ken Blanchard Companies has found a mass of evidence suggesting that in the UK, the customer comes anything but first.

According to one survey ,[1]  86% of UK consumers will stop doing business with a company because of poor customer service (up from 59% four years ago) and 10 million of us have done so in the last six months[2], mostly because of unfair fees or charges, or poor product or service quality. Only 3%
of consumers believe UK high street retailers offer great customer service;[3] while a ‘poor experience’ has forced over 10 million consumers in the UK to switch suppliers in the last six months alone. The main culprits for this switching epidemic are unfair fees or charges, poor product or service quality and rude or disinterested employees.

“Poor customer service is estimated to cost UK businesses £15.3 billion,” [4] says Vicki Halsey, who collated the data for the Ken Blanchard Companies. “And not only are companies losing money, they are investing in the wrong customer experiences,” she adds. “Retailers in particular are investing more and more heavily in loyalty schemes and green/sustainable policies, yet our review of the research suggests customers really aren’t concerned about these things: only 17% of respondents choose where to shop based on their participation in loyalty card schemes and 93% of consumers would continue to shop in the same stores even if retailers scrapped their loyalty scheme.[5]  What customers actually want is easy access to information and availability before making a purchase, improved customer service, and a ‘tailored’ experience.” [6]

UK consumers are also getting far less tolerant of inefficiencies. The longest time most are now prepared to wait in a queue is two minutes, down from five only six years ago. And 51% of shoppers will refuse to even enter a store if they spy a queue.[7]

“A key issue for business in 2012 is clearly going to be meeting rising customer expectations,” says Halsey. “The world is becoming more and more transparent, customer experiences can easily be researched online, and being ‘easy to buy from’ and ‘deal with’ is crucial for consumers. By consistently providing a personalised and tailored response to your customers, you can create real competitive edge and reduce emphasis on price.”

---

[1] Harris Interactive, Customer Experience Impact Report

[2] Satmetrix

[3] Retail Eyes Report

[4] Genesys Telecommunications Laboratories Report – The Cost Of Poor Customer Service

[5] YouGov SixthSense

[6] Right Now Report – Customer Experience Impact

[7] Barclaycard

The Ken Blanchard Companies provides leadership training programmes such as Situational Leadership® II - the world's most-widely taught leadership programme - executive coaching, change management consulting, and team-building solutions in more than 30 countries worldwide. The company was founded in 1979 by the best-selling business writer and co-author of The One Minute Manager®.

Web: www.kenblanchard.com

Social Media Links: Twitter @kenblanchard; www.facebook.com/kenblanchard

Blog: www.HowWeLead.org

Business and Management forum: www.leaderchat.org