What is the Institute of Customer Service (ICS) expecting from this year's Autumn Statement? What provisions would you like to see made to ensure customer service is seen as a driver for economic growth?
Given that this Autumn Statement takes place against the backdrop of the troublesome economic times we are living in, the Institute expects the focus to be on economic growth, efficiency savings and skills development.
We are concerned about the amount of youth unemployment that the UK is experiencing, unemployment more generally and the context in terms of customer service that the government is placing on the UK economy.
Seventy-seven per cent of our GDP in the UK is service-orientated. Therefore, the Institute believes very strongly that excellence in customer service is critical to the UK's overall performance..
For me, service is the engine of the UK economy.
Recent researchthat we conducted in September shows that 328,000 people now work in UK customer service. That has moved from 98,000 in 2002 – a significant growth, which equates to almost £5bn in wages each year. However, as an industry, customer service remains 34 per cent below the national average in terms of salaries.
It is important to link organisational performance to UK plc. Anything that the government can do to put customer service at the forefront of their minds is absolutely critical.
As consumers we have less money in our pockets, we are therefore more demanding and, as a result, I believe, there has never been a better time to focus on customer service.
It is vital to promote the importance of customer service as a key strategic driver for UK plc. It is not a bolt-on, it is a profession.
We have over a million young people unemployed in the UK. This is a fantastic opportunity to get those younger people into a career in customer service and provide them with new opportunities.
How have existing cuts affected customer service across the UK?
Last week we issued a
press releaseon the state of customer service and its impact on the UK economy.
This press release shows that it costs around £6,500 to replace a customer, and businesses are very concerned over the next few years about potentially losing 10 per cent of their customer base.
We are seeing an increasingly competitive marketplace, and if you look at the price wars that have been taking place between supermarkets, there really is only one differentiator now, and that is the level of customer service.
Forty-four per cent of organisations describe customer retention as critical to their ability to achieve growth. As a result, anything that the government can be doing to drive this is critical.
Have cuts affected customer service? Yes and no. The more savvy, the more aware organisations, are putting customer service at the heart of their business.
Although almost half of businesses admit to cutting back on service operations during the recession, there is a view that such cuts can cause damage.
Over 20 per cent of businesses say they recognise that if you focus on customer service, that will drive the competitive advantage that they want.
Indeed, consumers agree. Our survey showed that 83 per cent said that they see loyalty as a key driver. Also two-thirds of firms, 64 per cent, are planning significant investment in customer service in the next year.
Does the ICS consider the government is doing enough to assist in the promotion of customer service?
This comes back to the skills agenda, which needs to focus even more on the importance of customer service as a profession.
It needs to be emphasised that good customer service is integral to our businesses and integral to the growth of UK plc.
Any method that government can adopt to help promote customer service, such as training and development, the better.
How can the government assist customer service in the run-up to the London Olympics?
The Olympics will be an opportunity for the UK to really showcase ourselves as a great service deliverer. It is not just about the two weeks of the Olympics, but the legacy post-Olympics and the run-up to the event itself.
Clearly there are a huge number of organisations that will benefit from the Olympic Games being hosted in London, organisations in transportation, hospitality and tourism. This all needs to come together to allow for a cross-functional approach, because as customers we think about the whole customer experience, not just the experience at the Olympic Park.
It is an opportunity to show case the UK as a destination – where all customers experience a memorable and positive event, and the more government can focus on the overall customer experience the better the games and the UK's standing will be.