Have you made a New Year’s resolution? Well, whether you have or not, we think there’s a change that needs to happen. We think it’s high time everyone started getting better customer service. With customer dissatisfaction at an all time high in this country, enough is enough. People should be expecting, if not, demanding, better service in 2025.
Now, that’s not to say that people working customer service roles deserve to be berated and yelled at. However, it’s clear that companies need to take feedback seriously and improve how customers interact with them.
Where have things gone wrong?
The decline in customer service standards didn’t happen overnight. It’s the result of several intersecting challenges.
Covid-19 was a real catalyst, with staffing shortages, supply chain issues, and a sudden switch to remote working plaguing customer service. But that was essentially four years ago – to blame the pandemic is a tired excuse in this day and age.
The UK high street is under threat, with more retailers folding or simply opting to close branches. Banks are the biggest offenders of this – since 2012, nearly 6,000 bank branches have closed. Those that are shutting branches say that they’re evolving with customer’s habits, needs, and technological improvements. But then why are complaints about the banking sector the highest they’ve been for more than a decade?
Concerns about current accounts, credit cards and fraud and scam have driven a significant increase in these complaints. In fact, the Financial Ombudsman Service is investigating more fraud and scam complaints than ever before. In the last financial year (2023/24), consumers raised 80,137 cases with the FOS about banking and payment products, 23% more than the previous year.
What are the main complaints?
According to estimates by Which?, energy customers spent an average of 112 minutes dealing with customer service problems, while broadband customers lost around 98 minutes. Altogether, this added up to an astonishing 27.3 million hours wasted by consumers throughout the year—split between 13.9 million hours for energy customers and 13.4 million hours for broadband users. So what’s causing this colossal catastrophe?
Chatbots are the top of most people’s complaints. Though they’re designed to direct consumers to a stock answer and filter out easily solvable questions, a bot often leaves you with an unhelpful response. Combine the limited scope of queries they can solve with the lack of understanding and human empathy, and it’s a recipe for frustration.
But if you do try to speak to a human being by calling a company, that can be equally irritating. There’s nothing more infuriating than a pre-recorded message robotically “thanking you for your patience, while we deal with an elevated number of calls”.
Waiting on hold makes customers feel like they aren’t a priority. In an increasingly busy world, time is precious. No one wants to be reduced to a number in a queue, without the power to change anything and only getting more anxious the longer you have to wait.
And then there’s the fact that everything nowadays seems to have a baffling journey from start to finish. From creating an account, to scanning a QR code, downloading a new app, to entering your personal details over and over again. Why can’t everything be stripped back and simplified, so that everything you need to see is in one place?
How bad is the problem?
The consequences of poor customer service extend beyond lost time. It significantly affects emotional well-being, with 55% of energy customers feeling frustrated, 25% experiencing anger, and 21% feeling helpless. Similarly, for broadband users, 57% reported frustration, 29% felt angry, and 19% felt helpless. It comes as no surprise then, that staggering 67% of UK consumers say they are less loyal to brands now than they were two years ago, compared to 58% last year.
With record level of dissatisfaction in customer service, it’s more important than ever that companies do whatever they can to invest in customer service that’s not just up to scratch but actually goes beyond consumers’ expectations.
What should companies do to fix it?
“Make it easier to contact the right person to help me” topped the feedback in the UK’s Customer Satisfaction Index Report. And it just about sums up the situation.
It’s clear that companies need to incorporate customer insights into their long-term strategy, to prioritise customer service. Interestingly, 31% of customers said they prefer excellent customer service, even if it costs more. They also value prompt response times (93%) and feeling understood and cared for their personal situation and needs (56%).
As efficient as AI and chatbots are for promoting productivity, then can’t replicate human connection. Consumers are crying out that they want to speak to a real person, who can empathise with their situation while also being helpful.
Take back control – what can you do as a consumer
So, as we head into the new year here’s what you can do to take back control and start being treated the way you deserve to be by companies.
1. Check the reviews
Before you sign up to a company, look at its Trustpilot scores, and what customers say about their service. Note if people report that they’ve been able to speak to a real person, or get issues resolved quickly.
2. Get ready for battle
Gather your account information, previous bills, and any records of prior communications before reaching out to a company. Having a clear summary of key dates and details will help you stay focused and provide evidence if your complaint needs to be escalated.
3. Contact the right person
Use search terms like the company name and “customer service” in quotes for more accurate results. For smaller businesses, check their social media profiles for direct contact details. Many banks and financial services also offer dedicated lines for vulnerable customers.
4. Beat the bots
Experts suggest avoiding overly structured responses to move past chatbot hurdles. Try selecting random options during automated menus or typing confusing responses to bypass the system. Alternatively, directly request to speak with a representative or type phrases like “thinking of leaving” to connect with the retention team more quickly.
5. Know when to escalate
Unfortunately, in some circumstances you’re left with no choice but to take things to the next level. Find the corresponding ombudsman for the company, and get in touch with your documented evidence of personal injustice, hardship or financial loss because of the action/lack of action by a company.
Help us be more helpful
At Howden, we always strive to exceed expectations. Whether it’s stepping up to support during a claim, to welcoming you in branch with a cup of tea before helping you sort your cover. Across everything we do, it’s about going above and beyond for you.
So, why not pop into your local branch or give the team a call? Find your nearest branch here!
Sources: ServiceNow, Which? Complaining Cow, UK Customer Satisfaction Index
This is a marketing blog by Howden.