According to the Institute of Customer Service, 70% of roles in the UK are customer related.
At the end of last month, the Institute of Customer Service published a groundbreaking research report - the result of the largest study of its kind ever undertaken - that examined how sustained service strategies impact organisational performance.
The report, entitled ‘The Customer Service Dividend: How organisations have achieved ROI and greater productivity’, analyses the customer satisfaction performance of 124 UK companies using data going back to 2008 from the UK Customer Satisfaction Index (UKCSI) mapped against a number of key financial metrics.
- Organisations with customer satisfaction at least one point higher than their sector average achieved average annual turnover growth of 9.1%, versus flat growth for those with lower satisfaction.
- Over a longer period of time, the growth held true. Over three years there was a 5.3% compound turnover growth and after 8 years, 4.7%. Those with a lower-than-average customer satisfaction score achieved 0.4% growth year-on-year and just 3.5% across a five to eight-year period.
- The average revenue per employee for organisations with higher than average sector customer satisfaction is over £550,000 (£552,409) compared to less than £260,000 (£257,614) for those with lower than average sector customer satisfaction. A difference of 114%.
- Where an organisation outperforms its competitor set in its customer satisfaction scores, it will outperform them in revenue growth too.
- Where organisations see customer satisfaction as a key part of their strategic change or transformation programmes, they are more likely to see a consistently strong performance in terms of customer satisfaction. The suggestion is that where Boards focus on service strategies, satisfaction and employee engagement, there is a real – and sustainable - difference to the bottom line.
- Organisations that improved customer satisfaction to at least the level of the sector average registered typical turnover growth of 9.6%. For those that had fallen below the average in their sector, typical growth was only 1.8%.
The full report can be obtained here.
If you're building a case within your organisation for the areas of investment that will be the most beneficial in raising levels of customer satisfaction, we can help.