UK: The average customer satisfaction is at its lowest point since 2010. Retailers and banks top the list for customer satisfaction.

The UK Customer Satisfaction Index (UKCSI) found that satisfaction levels are at their lowest level since 2010. The report also highlights the relationship between strong service and ROI, as banks and food retailers with higher satisfaction are recording better financial performance. 

Last month, the UK’s Institute for Customer Service produced its UK Customer Satisfaction Index (UKCSI) for the first six months of 2024. This is the most authoritative study of how well or not major organisations serve their customers. Overall, the latest report finds customer satisfaction is dipping across all sectors including banking and financial services.

So, it is striking that among the top 50 UK organisations for customer satisfaction there are none of the major UK banks except for Nationwide Building Society in 2nd place. „One observation would be that unlike its competitors Nationwide is maintaining and investing in its branch network as an integral part of its customer service offer alongside mobile and online banking.” – according to Auriga.

In the UKCSI, when consumers were asked what aspects of personal care and service they most valued, their availability when they needed them ranked top. When you dig into the study there is a further interesting finding that alludes to the importance of truly customer centric approach in banking.

The biggest gap between those banks with above average customer satisfaction scores and those with below average scores is the extent to which customers perceive that banks genuinely care about customers and build the experience around their customers’ needs.

Key findings

. 45% of customers say that whether or not an organisation does the right thing, in its business practices or its impact on society, has influenced their satisfaction

. 62% of customers believe that bad practices or behaviour by a company will damage its long-term reputation and that an entire sector can be tarnished by the actions of one or a small number of companies

. 56% of customers say their satisfaction with an organisation has been influenced by whether they felt it understood and cared for their personal situation and needs

Which companies have the best customer service?

Retailers top the customer satisfaction list, with seven of the top 10 organisations in that sector. A handful of banks and building societies also feature, with Nationwide taking the second spot and Starling, Monzo and Yorkshire Building Society also scoring highly for their customer service.

The report found that 9 of the top 40 organisations are from the banking sector, up from six a year earlier. Crucially, the report found that banks and food retailers with higher satisfaction are recording better financial performance.

Jo Causon – CEO of the Institute of Customer Service said: „Unfortunately, the current outlook isn’t where we need it to be, despite our research showing that higher levels of customer satisfaction correlate with financial stability and growth.„

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The UKCSI is the national barometer of customer satisfaction published twice a year by The Institute of Customer Service since 2008. It is an independent, objective benchmark of customer satisfaction on a consistent set of measures on 282 organisations and organisation types in 13 sectors.