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A hidden cost of poor customer service – Substandard service costs £28 billion a year in lost productivity
People dealing with customer service issues during office hours cost their employers £28 billion* per year in lost productivity, according to new research released by The Institute of Customer Service.
As MD of Customer Service Network for the last 20 years it never ceases to amaze me that despite all the research, most organisations continue to see Customer Service and Customer Experience as Cost and not a Profit Centre. A great example of this in recent days is how Ryan Air chose to deal with their customers during the recent problems.
John – Managing Director, CSN
Brits dealing with customer service issues during office hours cost their employers £28 billion* per year in lost productivity, new research reveals today.
The poll, released by The Institute of Customer Service, analysed the impact of UK employees having to take time out of their working days to resolve personal issues with customer service staff in the last year.
Customer service issues related to house purchases are the most time consuming, and therefore most expensive to organisations, costing an average of £2.5 billion a year. This is followed by resolving tax queries (£2.4 billion) and problems with transport providers (£2.3 billion). The average cost per employee is £1,194 per year.
In terms of instances of poor customer service, Brits are most likely to have to take time out of their day to deal with issues with their utilities provider, with over half (54%) having to make contact to resolve a problem over the past three months. The next biggest culprits are deliveries (44%), house maintenance and repairs (42%) and car problems (42%).
The findings also suggest the impact on the UK economy stretches beyond this £28 billion figure, with employees admitting that the quality of their work has suffered because of poor customer service experiences. Over half (53%) of consumers state frustrations with customer service staff can impact their ability to focus at work even after the conversation is over.