CMA: UK customer service levels among the worst in Europe

Brits more likely to see cause to complain than our European cousins.

Customer service is an incredibly powerful tool.

People like me can bang on about current accounts or credit cards that offer nifty interest rates, cashback or some other eye-catching feature, but the reality is that if you think using that firm is going to be a hassle, you probably won’t bother.

Here's a perfect example: for years I’d tell my mum about new current accounts that she might want to consider, perhaps because they paid more interest than savings accounts or cashback on household bills.

But she was never interested. She loved first direct, having been with them for decades, and trusted them to always treat her properly.

She’s certainly not alone either ‒ there’s a good reason first direct wins every customer service award going.

However, it would appear that many Brits aren’t enjoying such impressive levels of customer service.

In fact, a new report from the Competition & Markets Authority (CMA) has suggested that Brits endure some of the worst levels of customer service in all of Europe.

A closer look at competition

Earlier this year, the Government tasked the CMA with casting its eye over the state of competition within the UK generally, to get, a broad look at what levels of competition we have among providers in various industries, and what that may mean for the future.

And one of the features that the CMA has included in its study, which it published this week, is the level of customer service on offer from these providers.

It doesn’t make for great reading.

In 2017 ‒ the most recent year for which it had comprehensive figures ‒ around 13% of Brits experienced at least one problem that was deemed worthy of complaint with a provider or supplier of some description.

That’s significantly higher than the EU average of 8.5%.

It’s trending upwards too, with the UK figure having grown by 1.4 percentage points since 2013. By contrast, the average figure for EU nations had dropped 1.2 percentage points over the same period.

What’s more, shoppers were more likely to have had these serious problems with services (14.2%) rather than when buying goods (10.7%).

The report also highlights the fact that firms often aren’t particularly good at dealing with those complaints once they receive them, pointing to research from Citizens Advice which suggested that barely half (51%) of those who sought redress for a problem they had experienced were satisfied the issue had been resolved properly.

In other words, not only are we more likely than our cousins on the continent to suffer rubbish customer service, but there's a decent chance that even when we do complain it won't go anywhere.

And that's simply not good enough.

The best and worst performers

The report delves into surveys from the European Commission, looking at which sectors generate the highest satisfaction ratings from us, and which have room for improvement.

Overall satisfaction levels have us 11th out of the EU nations, which at least puts us in the top half, with an average rating of 81 out of 100. 

At the top end, the highest ratings are for providers of dairy products, alcoholic drinks and small household appliances, all of which garnered average scores above 87.

Things aren’t quite so positive for train operators (70.1), property firms (70.9) and broadband providers (72.7) though, which make up the bottom three.

The publishing of the report is particularly timely, given that this week a joint report from the Consumer Council for Water and Ofwat, the water regulator, cautioned that water firms aren’t doing enough to tackle the root causes of customers’ frustration and need to improve their overall service.

Water providers finished eighth from the bottom in the European Commission polls of UK residents with a score of 76.6.

Who gives you extra?

Of course shopping around for a provider or retailer that offers the best price is relatively easy, thanks to price comparison sites.

Doing your homework on the level of customer service you can expect is not so straightforward.

Nonetheless, it can be helpful to check reviews for firms on the likes of Trustpilot to get a steer on what you can expect.

There’s also the annual report from consumer champions Which?, based on polls of members about their experiences with certain brands over the preceding year.

Here’s how firms measured up in 2019, with ‒ you guessed it ‒ first direct at the top of the pile.