According to a survey, six in ten consumers believe low prices will become more influential when deciding where to shop and what to buy in the next two years.
According to the Institute of Customer Service, businesses must provide more than just discounts to customers.
According to the organization, which polled 10,000 people, businesses should provide value and a variety of payment options.
A third of those polled were still willing to pay more to ensure good service.
Customers, according to Jo Causon, do not want “just cheap” products and services, so businesses must be flexible and transparent about what they are offering their customers. This could include being upfront about products and when they would be available if supplies were limited.
Staff needed to understand the financial pressures their customers were under and provide a variety of payment options, she said.
They should also consider offering budgeting advice or tips on getting the most out of products.
Firms should also determine whether technology was the best solution to a problem and when human interaction was required.
The institute polled customers as part of a routine review of customer service, at a time when prices are rising at the fastest rate in 40 years and energy, fuel, and food prices continue to rise.
A shortage of skills and staff, supply issues from around the world, and the economic environment were all putting pressure on businesses to provide consistent service to customers, according to the institute.
“These issues cannot be avoided by organizations. They will need to create service strategies that are responsive to changing customer needs while also protecting both short and long-term business performance “Ms. Causon stated.
More than 17% of those polled reported a product or service issue, the highest overall level since records began in 2008. According to the survey, a growing issue was the quality and dependability of goods and services.
The cost of dealing with poor service was added to a company’s ongoing expenses. The institute estimated the total cost in staff hours to be £9.24 billion per month.
Ms. Causon stated that while UK businesses have gotten much better at dealing with and resolving complaints, more work is needed to prevent problems from occurring in the first place.
Customers were fed up with companies using Covid as an excuse for long phone lines or late deliveries a year ago, but that issue had been surpassed by issues related to the cost of living.
However, the institute has emphasized that the issues were not all one-sided. Some customers have been violent and abusive to store employees.
According to recent data, 44 percent of frontline service staff experienced customer hostility in the previous six months, up from 35 percent the previous six months.
A quarter of employees who have experienced increased hostility believe it is due in part to the sharp rise in the cost of living and the stress this has placed on customers.
The survey comes on the heels of Citizens Advice’s critical report on energy companies’ customer service performance.
The charity, which uses a star rating system to rank suppliers, said on Friday that standards had “plummeted” to a record low since June 2021, when several suppliers went bankrupt due to high global gas prices.
According to the report, the average wait time on the phone to speak with a company is now about six and a half minutes, up from just under four minutes the previous year.
It went on to say that standards could fall even further this winter as prices rise.
This month, the Financial Ombudsman Service – an independent arbiter of unresolved disputes – also advised financial institutions to resolve issues more quickly, particularly for victims of fraud and scams.
