A new study by Servion highlights persistent problems: the UK telecoms sector is incurring rising costs due to poor customer service.
Servion examined complaints data across the energy, financial and telecommunications markets, drawing on records from each industry’s ombudsman. The research found that the communications sector experienced a sharp increase in complaints in the UK, with a total of 29,503 complaints — a 132% rise compared with 2016.
As customers expect more value from their providers, many communications service providers (CSPs) are choosing to settle complaints financially rather than addressing underlying service issues. The study shows the most common compensation amount was around £50. The root causes for payouts remain familiar: service failures, billing mistakes and contract disputes. Servion recommends that CSPs automate complaints handling where appropriate to resolve issues faster and reduce costs.
The other sectors did not fare much better. In 2016, customer service became one of the top three causes of complaints in the energy market for the first time, while the finance sector saw fewer overall complaints but a higher proportion resolved through monetary remedies.
“Consumers will no longer accept a poor customer experience, hidden costs or substandard services — and organisations that aren’t keeping up are paying a heavy price,” said Shashi Nirale, SVP and GM EMEA at Servion. “Paying out for the majority of customer complaints is simply not sustainable.”
“Businesses must adopt new ways of engaging with customers, using technologies such as artificial intelligence and automation, to ensure interactions are personalised, timely and efficient,” Nirale added. “Those that fail to modernise risk falling profits as increasingly dissatisfied and disloyal customers move to competitors.”
Earlier this month, writing for this publication, Gabriele Di Piazza, VP of Products and Solutions for Telco NFV at VMware, urged CSPs to rethink their innovation strategies and extend efforts beyond R&D labs. “For a business to innovate successfully on a platform delivered through R&D, it must also develop the right combination of culture and collaboration,” Di Piazza wrote. “Without understanding why customers are loyal to your business and the value they receive from your services, a business cannot set the right goals for driving new thinking.”