Insurers offer better customer experience, says report

Customers have better experiences with frontline staff at insurers and banks than any other industry, according to a survey released by the Institute of Customer Service.

The research revealed that almost one third (29%) of consumers have had a ‘memorable service’ experience within the last six months, but only 57% of these interactions were positive, whilst 43% were negative.

Two thirds of the time those memorable experiences with insurers and banks were positive (65% and 63% respectively). Yet, when it comes to utilities companies, customers reported more bad experiences (57%) than good (43%).

The survey of 2,000 consumers found a pressing lack of engagement among UK frontline service staff, with customers complaining of bored and disinterested staff working in high street shops and utilities companies. 

It also revealed that UK businesses may be missing an opportunity to maximise revenues, with one in four consumers willing to pay more for their goods and services – on average 5% more – for better service.

The Institute of Customer Service’s chief executive Jo Causon said: “Ultimately, creating a good service experience has positive outcomes for organisations, while a bad experience makes costly, negative consumer behaviour far more likely. Companies are clearly still failing to realise the financial importance of good customer service, and communicate this to staff. 

“Firms must do all they can to ensure their employees are engaged and committed to delivering the highest possible service quality. This will result in an engaged, energised workforce and a more profitable company.”