smg customer satisfaction index uk

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Customer Satisfaction Index ©Service Management Group, Inc. and/or Service Management Group Ltd. “SERVICE MANAGEMENT GROUP®” and related trademarks are trademarks of Service Management Group, Inc., and are used under license. Championing the UK Customer Experience A research report by Service Management Group 1

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SMG Customer Satisfaction Index - UK report analysing impact of customer service in retailers on sales and brand loyalty.

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Page 1: SMG customer satisfaction index UK

Customer Satisfaction Index

©Service Management Group, Inc. and/or Service Management Group Ltd. “SERVICE MANAGEMENT GROUP®” and related trademarks are trademarks of Service Management Group, Inc., and are

used under license.

Championing the UK Customer Experience

A research report by

Service Management Group

1

Page 2: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

SMG used 20 years’ experience to analyse results from across all parts of the UK

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Executive Summary

• SMG, a customer insight agency, analysed the results of feedback from 108,048 genuine

UK retail and restaurant customers during 2011

• SMG used this insight to measure customer satisfaction levels in the UK and to establish

the Customer Satisfaction Index

• The report aims to provide the UK retail and restaurant industry with a clear

understanding of the customer experience, what the consumer values and how to meet

these expectations to maximise customer loyalty and spend

Page 3: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

This report presented some astounding and very telling data

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Key Findings

• The SMG Customer Satisfaction Index in the UK has a score of 6.1 (out of 10)

• Spend increases by 39 per cent per sale when customers are assisted

• This equates to £45.38 billion in missed sales last year due to poor customer service

• The worst places in the UK for customer service are Worcestershire, Dorset and

Berkshire, whilst the best places are Hereford, Northumberland and East Yorkshire

• Customer service drops throughout the day, having a direct impact on sales

• Customer satisfaction mirrors the ‘Personal Happiness Index’ with customers aged

between 25-49 the least satisfied with their customer experience

• British men are more likely than women to complain about their customer experience

Page 4: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

The Value of a Smile

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Smile and Spend

Sales increase by 39 per cent when a

customer receives assistance

SMG calculated the “floating pound”-

£45.38 billion is missed in sales due to

poor service*

Page 5: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

The Value of a Smile

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Smile and Spend

Receiving assistance was the largest driver of consumer spend – impacting across all

seven days of the week

Page 6: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

Worcestershire, Dorset and Berkshire all below the national average

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Regional Happiness

The regional map

highlights that the

highest satisfaction is

found at the geographical

extremes of the country

Cornwall, North East

Scotland, Northern

Ireland, West Wales,

Norfolk and East

Yorkshire all surpassed

the national average

score

London performs

significantly lower than

the rest of the UK

Page 7: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

Brands are not offering a consistent experience across the country

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London Lags

UK customers are more

satisfied outside of

London

Speed at the till is

considerably quicker

outside of London

Staff are, on average, friendlier

outside of London

Page 8: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

Retailers are not delivering a consistent in-store experience throughout the day

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Afternoon Blues

Key shopping times at lunch and after

work are not being capitalised on Staff friendliness, availability and

cleanliness are in decline during the post-

5pm ‘urge to splurge’

Page 9: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

The middle muddle

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Personal Happiness

Customer satisfaction

mirrors the ‘Personal

Happiness Index’

U-bend

External factors such as

disposable income,

children and ambition

are likely to affect this

age group more

Customers aged between 25-49

are the least satisfied with their

customer experience

Page 10: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

The problem with sex

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Satisfaction

Women are generally happier with their in-store journey, and more likely to return,

recommend and report a better experience

Page 11: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

The problem with sex

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Satisfaction

More men than women are experiencing a problem while in a store. In addition, men

are receiving a better level of service recovery than women.

Page 12: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

What we suggest you do with this data

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Recommendations

• Encourage staff to use open statements to prompt requests for assistance

• Highlight the impact of friendliness and assistance on sales and customer satisfaction

levels

• A consistent brand experience across at all times across channels is important to improve

loyalty

• Reassurance by staff to queuing customers is just as important as store design

• Adopting a snake queue system can be effective. Not only does it have the perception that

it is moving fast, it is fair with little risk of being served out of turn

• Product availability is occasionally an uncontrollable factor, but through product

knowledge staff can offer a realistic alternative

Page 13: SMG customer satisfaction index UK

©Service Management Group, Inc. and/or Service Management Group Ltd.

A little about Service Management Group

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About SMG

• SMG (Service Management Group) is the leading international customer experience

research firm. Driving business results by partnering with brands to improve customer

loyalty and employee engagement, SMG provides actionable insights and

recommendations at both the front-line and senior executive levels.

• SMG has developed a proprietary suite of research services combining world-class

technology with unmatched industry expertise. Each year, the firm evaluates over 70

million customer experiences in 64 countries and 29 languages for more than 200 brands.

• Continuous customer insight programmes are used regularly by a range of retail and

leisure outlets across the UK. Data is collected when a customer completes an online

feedback form to respond to questions relating to the entire customer journey.

• Calculation of the “floating pound”: In 2011, UK retail sales totaled £303 billion. Given the

SMG Customer Satisfaction Index score (6.1), this equates to £45.38 billion in sales that

retailers are missing due to poor customer service.

Methodology

Page 14: SMG customer satisfaction index UK

How to reach us Jeremy Michael Managing Director 3 Holywell Hill, St Albans, Hertfordshire AL1 1ER T: +44 (0)20 3463 0700 F: +44 (0)20 3463 0701

www.smg.com/uk

©Service Management Group, Inc. and/or Service Management Group Ltd. “SERVICE MANAGEMENT GROUP®” and related trademarks are trademarks of Service Management Group, Inc., and are

used under license.