McCallum Layton conducted a Snapshots study in November 2015 in order to gain an understanding of people’s current attitudes to customer service, and the role it plays in their relationships with companies and brands.

1. Snapshots: Customer Service
December 2015

2. 3. Introduction
4. Key Points
5. Conclusions
7. Contacting Customer Service Departments
9. Nature Of The Reason For Contact And Its Impact On Resolution
10. Consumer Expectations Of Customer Service Departments
11. Impact Of Different Methods Of Contact On Consumer Perceptions
12. Overall Satisfaction With Customer Service
13. Perceptions Of Various Aspects Of Customer Service
14. Drivers Of Overall Satisfaction
15. Effect Of Customer Service On Consumer Loyalty And Brand
Switching
17. Customer Service Interaction On Social Media
18. Changing Expectations Of Customer Service As A Result Of Social
Media Growth
Contents

3. With the wealth of information and choice now available
to today’s consumer, it has become easier and easier for
people to find better deals and switch their business from
one company or brand to another. In an effort to help create
and maintain customer loyalty many companies invest a large
amount of money, time and effort in their customer service
departments; but how important really is customer service to
consumers? Is good service a hygiene factor that people simply
expect these days or do consumers actually take it into account
when evaluating which company or brand to give their business
to.
With this question in mind, McCallum Layton conducted
a Snapshots study in November 2015 in order to gain an
understanding of people’s current attitudes to customer
service, and the role it plays in their relationships with
companies and brands.
As with our other Snapshots studies, we will conduct the
survey annually to track changes over time.
Interviews were conducted online with 400 UK adults (over 18).
Our sample was nationally representative by age and gender.
Introduction
3

4. • Despite the fact that there is more choice than ever before in terms of the way in which consumers
can raise a query or complaint, the telephone is still by far the method most likely to be used and
preferred. Email is the second most used and favoured method overall, however 18-24s are more
likely to prefer to use live web chat than email.
• The majority of consumers expect better customer service than they did a few years ago – the
growth of social media has caused people to anticipate faster resolution to a query/complaint and
has raised expectations that it will be resolved to their satisfaction.
• Almost 3 in 4 claimed they would choose a company with a good customer service reputation, even
if it cost a little more – although a similar proportion believed many companies just pay lip service to
customer service.
• The majority of those who had used live online chat or call back options to contact a customer
service department reported having been left with a positive impression of the company; in
contrast around half of those who had used voice recognition services said it had created a negative
perception of the organisation.
• Although most reported having been satisfied with their most recent customer service experience,
a fifth had been dissatisfied; this rose to almost a quarter of customers whose most recent contact
had been with a communications company. The biggest drivers of satisfaction (or dissatisfaction)
are being able to communicate with staff that are knowledgeable enough to help, getting the
impression that the issue is being treated seriously, and not having to put an unacceptable amount
of effort into achieving a resolution.
• A substantial proportion - around three-fifths – had ever switched brand or company due to poor
customer service; respondents were more inclined to say they could be fairly easily prompted to
switch from a mobile phone network or energy supplier due to poor service, than from their current
account provider.
• However on a positive note, three-quarters claimed that they had become more loyal to a company
or brand as a result of a good customer service experience – two-fifths specified a bank or building
society in this context.
Key Points
4

5. The proliferation of comparison websites, community review
sites and social media websites has changed the dynamics of the
relationship a brand has with its customers; never before have
consumers been able to scrutinise so easily and in such detail
every aspect of a brand’s service and product offering. Because
bad experiences can readily be so widely shared, people have
significantly greater expectations of the service that they will
receive from the companies they choose to do business with (in our
survey 72% said that they expect better customer service now than
they did a few years ago). Therefore in order to keep ahead of the
competition, businesses need to ensure they are actually offering
exemplary service, and not just paying lip service to doing so.
Interestingly, although online and social media now dominate the
narrative around brand and consumer interaction, there is still an
overwhelming preference amongst consumers to be able to contact
customer service departments by telephone. Therefore, although
in financial terms it may be seen to be beneficial to remove the
option of the ‘phone as a method of contact, if maintaining/
increasing customer satisfaction is a company’s key objective it
would be a foolish route to take at the moment. However, the
indication is that live online chat is becoming an accepted method
of contact (ever used by around 1 in 2 of our respondents) and this
channel is also likely to leave people with a positive impression
of the company. Therefore in time it may be that the majority of
consumers are happy to forgo the option of telephone contact, if
they are offered live online chat as an alternative.
Conclusions (1 of 2)
5

6. Our research shows that there are three key elements of the service
experience which are most closely linked to overall satisfaction;
knowledgeable staff; the issue being taken seriously; and, not having to
put too much personal effort into achieving a resolution; these then are
the areas on which training of customer service representatives needs
to focus.
A particularly interesting finding from the study is the fact that the
majority of people (70%) say that they would be willing to pay slightly
more for a product or service from a company with a good reputation
for customer service. In addition, 3 in 4 say that they have become
more loyal to a brand in the past as a result of good customer service.
In addition, a relatively high percentage of people spontaneously
mentioned John Lewis (an organisation which seems to go from strength
to strength) as a company which offers particularly good service
So it appears that good customer service, far from merely being a
hygiene factor, really is something that can differentiate one brand
or business from another – and the most successful organisations will
therefore be those who make this an integral part of their ethos and
culture .
Conclusions (2 of 2)
6

7. When asked to think about their most recent contact with a customer service department and say what method they had used, just under two-
thirds had telephoned. Moreover with just over half selecting this as their preferred communication channel it’s clear that phone remains the
dominant form of contact when dealing with customer service departments.
Contacting Customer Service Departments (1/2)
7
Channel used
Telephone64%
20%
7%
5% 9%
13%
19%
56%
Email
Face to face
Live web chat
Channel preference
Base: all respondents (400)
Although email is
the second most
preferred channel
overall , it is less
popular amongst
18-34s than
older consumers;
younger people
are more inclined
to favour live web
chat than email
(14% vs 11%)

8. Complaint
41%
Query
24%
Help
13%
Other
22%
U"li"es (63)
Around 1 in 4 said their most recent contact had been with a communications organisation. The reason for the contact varied by sector;
the majority had contacted retailers (grocery and non grocery) to complain, while contacts to communications companies and financial
organisations were most likely to have been motivated by a need to query something about a product or service, or to obtain help and
support. 18-34 year olds were more likely than 34-54 and 55+ year olds to have been contacting for help using a product or service.
Base: Types of company contacted; all respondents (400)
Types of contact made, by company type; as shown above
Contacting Customer Service Departments (2/2)
Types of company contacted Reason for contact, by company
8
24%
18%
16%
16%
13%
Communications companies
Food and grocery retailers
Utility companies
Financial organisations
Non-grocery retailers
Complaint
39%
Query
36%
Help
17%
Other
8%
Communica)ons (95)
Complaint
56%
Query
28%
Help
8%
Other
8%
Food and grocery retailers (72)
Complaint
21%
Query
37%
Help
18%
Other
24%
Financial organisa,on (62)
Complaint
53% Query
23%
Help
9%
Other
15%
Non-grocery retailers (53)

9. Nature Of The Reason For Contact And Its Impact On
Resolution
The majority believed that their issue, query or complaint had been a relatively straightforward matter. Those who had contacted a utility
company were most likely to describe the reason as a complex matter (37%). In contrast, despite having a higher proportion of complaints,
only 22% of the issues that retailers (food and non-food) had been contacted about were described as complex.
9
Base: respondents contacting about a complaint, query, or asking for help who have had a reply (331)
65% of issues that were considered to
be complex in nature had been resolved
by the time of responding to the
questionnaire, with 35% still ongoing
85% of straightforward issues had been
dealt with by the time of responding to
the questionnaire, with only 15% still
ongoing
Straigh(orward
71%
Complex
29%
Issue
complexity
Issue
complextiy

10. A majority of respondents (72%) agreed that they expect better customer service than they did a few years ago . The reasons for this centre
around there being more competition and therefore choice for consumers, and bad service experiences being more easily shared through
social media and other online platforms. Interestingly, a high proportion, 70%, said they would choose a company with a good reputation
for customer service, even if it cost slightly more.
More affluent consumers (in the AB social grades) were more likely than C2DEs to agree that they would choose a company with a good
reputation for customer service, even if it cost a little bit more. In addition, ABs were also more likely to expect better customer service than
they did a few years ago.
Consumer Expectations Of Customer Service Departments
10
Extent of agreement with customer service attitudinal statements:
Base: all respondents (400)
Growth of social media makes businesses
take customer service more seriously
Many companies just pay lip service to
customer service
Expect better customer service than a few
years ago
Would choose a company with a good
customer service reputation, even if it cost a
little more
4.00
4.02
3.86
3.80
Mean average out
of 5: where 5 =
Agree Strongly
38%
36%
27%
20%
36%
36%
42%
50%
17%
21%
22%
21%
9%
7%
9%
9%
Agree strongly Agree slightly Neither Total Disagree

11. Live online chat had ever been used by 52% overall, and just over half who had used this method felt it had generated a largely positive
perception of the organisation. Call back options had been used by only around a third – but this was the method which was most likely to
have created a positive impression. Voice recognition telephone services had been used by 24%, almost half of whom reported having a
negative impression of the company as a result.
Impact Of Different Methods Of Contact On Consumer
Perceptions
11
Communication channels ever used to
contact a customer service department:
Impact of the methods used on
perceptions of the organisation:
Base: all respondents (400)
Live online chat
Touchtone telephone
services
Call back options
Voice recognition
telephone services
52%
47%
35%
24%
Positive Neutral Negative
36%
55%
30%
38%
15%
62%
24%
55% 9%
21%
7%
47%

12. There is unlikely to be
any recovery in the
housing market this year
– many people are still
deterred from moving
due to the economic
Overall Satisfaction With Customer Service
Overall 71% had been satisfied with their most recent customer service experience. The sector with the highest proportion of satisfied
customers was food and grocery retailing (83% quite or very satisfied), while those who had contacted a communications company were the
least likely to have been satisfied with the experience (64%).
12
14
29
24
19
14
12
9
7
Base: all respondents (400)
Mean Score = where 5 = Very Satisfied
Overall satisfaction
Very
sa(sfied
39%
Quite
sa(sfied
32%
Neither
9%
Quite
dissa(sfied
8%
Very
dissa(sfied
12%
Mean
satisfaction:
3.80
47%
36%
4%
3%
10%
49%
26%
11%
8%
6%
40%
38%
4%
9%
9%
32%
32%
12%
7%
17%
37%
29%
13%
10%
11%
Food and grocery
retailers
Mean
satisfaction:
4.08
Mean
satisfaction:
4.02
Mean
satisfaction:
3.89
Mean
satisfaction:
3.56
Mean
satisfaction:
3.73
Financial organisations
Non-grocery retailers
Communications
companiesUtility companies

13. There is unlikely to be
any recovery in the
housing market this year
– many people are still
deterred from moving
due to the economic
Perceptions of Various Aspects of Customer Service
Food and grocery retailers were highly rated on all the aspects of the customer service experience covered; however communications
companies tended to be least likely to be positively perceived.
13
Base: all respondents (400)
*all respondents whose query/issue had been dealt with (262)
Total satisfaction (%):
88%
79%
86%
78%
82%
81%
80%
85%
76%
83%
78%
68%
74%
80%
79%
67%
79%
74%
79%
69%
78%
79%
69%
68%
72%
86%
81%
74%
84%
64%
71%
65%
78%
71%
Easy to find the
informa<on I needed
I was able to contact at
<mes convenient to me
The people who dealt
with me were
knowledgeable enough
to help
I was treated with
respect
They treated the issue
seriously
*Amount of <me from
contact to resolu<on was
acceptable
*Amount of effort I had
to put in was acceptable
Food and Grocery Retailers Non-Grocery Retailers Financial Organisa<ons U<li<es Companies Communica<ons Companies
88
85
86 86
82 81 8183
79
71 71
68 68
85
79 79 79 79
76
67
6969
64
84
80 80
78 78 78 78
74 74 74
72
65

14. By correlating satisfaction on specific aspects of service with overall satisfaction we are able to derive the importance of each aspect of the
customer service experience in driving satisfaction at an overall level. Here we see that the three areas of the service experience that are key
to driving satisfaction are; knowledgeable staff; the issue being taken seriously; and, not having to put too much personal effort into getting
a resolution.
Drivers Of Overall Satisfaction
14
Focus efforts here
Medium-low priority
Maintain performance
*all respondents whose query/issue had been dealt with (262)
Base: all respondents (400)
RelativeImportance
High
High
Low
Low Satisfaction
Reps were knowledgeable
enough to help
*Amount of effort I had to put
in was acceptable
*Time from contact to
resolution was acceptable
Treated the issue seriously Treated with respect
Able to contact at a
convenient time
Easy to find information
needed

15. Effect Of Customer Service On Consumer Loyalty And
Brand Switching (1/2)
15
Base: all respondents (400)
Mean
average
(out of 10): 6.45 6.28 5.85 5.54
We asked respondents to tell us how easily on a scale of 1-10 (where 10 is very easily) they could be prompted to switch organisations
should they experience poor customer service. Around 1 in 2 indicated that they could easily (mark of 7 or more) be made to switch from
their mobile phone network (assuming they were not on a contract), or energy supplier. Customers could least easily be persuaded to move
from their current account provider as a result of poor service.
20% 22% 31% 33%
24% 28%
23% 27%
31% 27% 25%
25%
25% 23% 21% 15%
Mobile phone network
(Communica>ons)
Energy supplier
(U>li>es)
Supermarkets
(Grocery retailer)
Current account
provider
(Financial organisa>ons)
9-10
7-8
5-6
1-4

16. When asked whether they had ever become more loyal to a brand due to a good customer experience, and also whether they had ever
switched due to a bad one, three-quarters claimed to have become more loyal and 61% said they had switched. Banks or building societies,
and supermarkets are most likely to have benefitted from increased loyalty due to good service, while communications companies are most
likely to have lost customers due to poor service.
Effect Of Customer Service On Consumer Loyalty And
Brand Switching (2/2)
16
Base: all respondents (400)
% % %
%%%
% % %
%%%
John Lewis and
M&S were spontaneously
mentioned as offering
particularly good customer
service by 16% and 12%
respectively. In terms of
companies spontaneously
cited as having a poor
reputation in this respect,
two communications
organisations, BT &
Talk Talk were the most
frequently mentioned
(both 14%).
Become more loyal
Switched
Types of company switched from:
75%
61%
40%
37%
28%
26%
24%
17%
30%
26%
20%
42%
16%
30%
Bank or building
society
Supermarket
Other retail
CommunicaBons
company
Insurance company
Energy supplier

17. Overall a reasonable minority had used social media platforms for information or support on a product/service, or to provide positive or
negative feedback on one.
Customer Service Interaction On Social Media
17
38% overall
had used social
media for at
least one of
these purposes
– rising to 63%
among 18-34s
Base: all respondents (400)
Ever used a social media platform to:
75%
81%
74%
72%
25%
19%
26%
29%
Help answer a query
about a product/service
Provide support in
opera@ng a product/
service
Complain about a
product/service
Provide posi@ve feedback
on a product/service
No Yes

18. Customers generally expect a higher level of customer service as a result of the growth of social media. Although, only a minority overall
perceive it to be important to be able to provide feedback to businesses through these platforms, amongst 18-34s around 1 in 2 deem the
ability to give feedback through Facebook or online communities to be important.
Changing Expectations Of Customer Service As A Result
Of Social Media Growth
18
Are expectations of customer services
changing as a result social media growth?
Importance of being able to give feedback to
businesses through:
Total
importance
Facebook
Mean score (1 =
Very Important,
5 = Not At All
Base: all respondents (400)
30%
32%
6%
7%
41%
44%
23%
18%
The speed with which a
query/complaint will be
resolved
The likelihood that a query or
complaint will be resolved to
your saBsfacBon
ExpectaBons
unchanged
Lower
expectaBons
Slightly higher
expectaBons
Far higher
expectaBons
Twitter
2.3524%
2.5227%
Online communities
2.7533%

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www.mccallum-layton.co.uk
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