Utilities sector hits rock bottom as customer satisfaction plummets
Poor handling of complaints has powered a record plunge in customer satisfaction across all sectors of the UK economy, according to the latest findings from The Institute of Customer Service.
Its twice-yearly UK Customer Satisfaction Index (UKCSI) revealed there has been the sharpest year-on-year fall in customer satisfaction since records began in 2008, with all sectors declining compared to 12 months ago.
UKCSI’s findings revealed that the utilities sector – which includes energy and water companies – has seen the sharpest fall in customer satisfaction over the past six months, set against rising bills and heightened scrutiny.
The survey provides insight into the state of customer service domestically across 13 sectors, and scores customer satisfaction out of 100, based on responses from over 10,000 people.
Customer satisfaction in the energy sector has fallen by 5.3 points, whereas water companies have declined by 3.5 points in the last year, placing utilities rock bottom in the league table with a score of 69.5.
This places it behind other lagging sectors such as public services, telecoms, insurance and automobiles.
Under increasing pressure, including rising costs and staff shortages, businesses are taking longer to resolve complaints, with 48 per cent of customers who experienced a problem saying it took longer than they expected for it to be resolved, compared to 37 per cent in July 2022.
Meanwhile, many businesses have overestimated their capacity to integrate data, systems and processes and have not always invested sufficiently in developing skills and capabilities, nor enabled career pathways to retain employees.
There was brighter news for the tourism sector, which accounted for seven of the index’s top 13 most improved firms – and is now second only to retail (non-food) for customer satisfaction.
Jo Causon, chief executive of the Institute for Customer Service, said: “With high inflation and price pressures expected to remain until 2025, organisations that proactively engage with customers through a range of communication channels, and put in place initiatives to support them through this tough period, can navigate these issues and cement customer relationships.
“This is not only important right now, but offers a way of helping us out of our current challenges – focusing on long-term outcomes, not just short-term fixes, means thinking differently.”