The Institute of Customer Service publishes a survey twice a year to measure customer satisfaction in the retail sector. The UK Customer Satisfaction Index (UKCSI) is up by 1.5 points compared to July 2024 and the highest UKCSI score since January 2023.
The Institute of Customer Service survey is an independent, objective benchmark which provides consistent measures on 282 organisations and types in 13 sectors.
Customer satisfaction has improved from an all-time low two years ago, where the UKCSI recorded its lowest score since 2010.
UK Customer Satisfaction Index – Key Findings
- All 13 sectors have higher customer satisfaction than a year ago
- The Public Services (Local), Services and Transport sectors have improved by more than 2 points
- More experiences were right first time and fewer customers had a bad experience or problem
- More customers feel that the organisation they dealt with demonstrated genuine care and understood and responded to their personal needs and situation
- 26% of customers said they needed to use more than one channel to achieve their objective when interacting with an organisation
- Just 25% of people think that organisations are doing enough to protect customers’ personal data and prevent cyber attacks
- 44% of customers have felt frustrated when navigating organisations’ security protocols or systems
Why customer satisfaction has improved
There are two main factors that have caused the improvement in customer satisfaction:
- More organisations have improved their effectiveness in reducing problems and delivering right first time experiences
- More customers feel that organisations have demonstrated genuine care and understood and responded to customers’ personal needs and situations
UK Customer Satisfaction Index – Top 10 Firms
This Year’s Headlines
First Direct has replaced Timpson as the top-rated for consistently good customer service.
Jet2 has dropped to 12th, one point behind Timpson.
New Entries
PayPal and Klarna have appeared for the first time and both made the Top 10.
Greggs has fallen to 44, only two points ahead of HM Passport Office!
It’s interesting to compare this to last year’s UKCSI 2024 Top 10 Firms.
What’s interesting?
First Direct’s rise shows that challenger banks with good digital and human support can outperform high street brands.
Jet2’s drop suggests airlines are struggling to maintain service levels post-pandemic and post-disruption.
Newcomers like PayPal & Klarna show how digital financial services are now seen as customer-centric, but this can change quickly.
Greggs’ slump might reflect cost-of-living pressures affecting service, or customer expectations outpacing delivery.
Customer satisfaction – the worst performers
Satisfaction with energy companies has improved, whilst water companies remain at the same level as July 2024.
Average satisfaction with energy companies has risen by 4 points to 73.8, compared to 69.5 for water companies (although it is 0.7 points higher than January 2025).
This will not come as a surprise to anyone.
Thames Water has made the headlines for all the wrong reasons, and were fined £122.7m in May 2025 for breaching rules over sewage spills and shareholder payouts.
Water companies released raw sewage into England’s rivers and seas for a record 3.61 million hours last year.
Joanna Causon, Chief Executive of the UK Customer Satisfaction Index said:
In this volatile and uncertain context, it’s encouraging to report that, after 3 years of decline or stagnation, customer satisfaction in the UK has improved and the improvement is seen in almost all sectors.
The upturn in customer satisfaction may be due to better and more seamless integration of technology and human interventions in customer service. However, the improvement is neither uniform nor consistent: there’s a considerable range in organisations’ customer satisfaction in most sectors.
It’s noticeable that the difference between the highest rated organisations and others relate to measures of emotional connection and customer ethos, as well as efficient experiences, and complaint handling.
The Importance of Great Customer Service
The one thing that sets a firm apart from its competitors is great customer service.
Silent losses is the biggest problem firms face in the private sector. 96% of customers do not complain. They simply walk away and take their custom elsewhere.
Cutbacks on customer service is a short-sighted strategy. Firms need to invest in their staff and training, treat and pay them well.
Richard Branson famously said, “If you look after your staff well, they will look after your customers.” He is also quoted as saying, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”
Customers want a frictionless experience and are willing to pay more for it. It’s a win-win. Higher customer service standards equals higher profits and increased loyalty.
The number of customers who are willing to pay more for excellent customer service has increased from 31.1% last year to 33.5%.
Customers say the main reasons why they are happy to pay more is for the reassurance of being able to access support and advice, and trust in the organisation.
Mistakes happen and consumers know that. It’s how they are dealt with that makes the difference.
Finally
Firms are making it more difficult for customers who have legitimate complaints. I see it every day with tried and tested tactics (and new ones) to deny consumers a remedy.
It’s the same firms that create the most complaints. They even have Facebook pages with thousands of members sharing their abysmal experiences and seeking advice.
What are your thoughts on the UK Customer Satisfaction Index and customer service? Do you think it’s worse than ever? Which firms would you recommend or avoid?
If you are struggling with a complaint, I have a book that can help you with that!