Industry must demonstrate customer satisfaction levels

The industry must prepare to demonstrate its adherence to the Financial Conduct Authority's (FCA's) new #ConsumerDuty next year, with many existing surveys and measures inadequate for this purpose. That's according to speakers from customer satisfaction agency Investor in Customers (IIC).

IIC Managing Director Tony Barritt and Customer Experience Director James Edmonds were speaking at Intrum UK's #outsourcing in #collections conference in London. They said companies that measure customer and staff satisfaction and act on the results typically grow three times as quickly as those that do not.

These firms also have better staff retention, find it easier to attract customers and introduce new products and services quicker and more effectively.

Consumer duty is 'titanic change'

Edmonds said the new Consumer Duty is a "titanic change for financial services". He added: "You need to provide internal and external evidence aligned to the cross cutting rules and four consumer outcomes. Existing customer experience surveys and metrics won't satisfy the FCA."

IIC told delegates it is important to recognise that not all customer and staff segments are the same, with different formative experiences, aspirations and communication preferences. The speakers urged lenders to ensure they have enough data on each segment to draw valid conclusions.

"For too long firms have been able to get away with poor internal practices," said Edmonds. "What gets measured gets improved, and what gets recognised gets done again, and even better."

The FCA's new duty requires lenders to demonstrate adherence to three cross cutting rules and four consumer outcomes all the way through the value chain, from advertising to recoveries.

Business rationale for measuring satisfaction

"Delighted customers stay with you longer, are less price sensitive, don't make complaints, repeat purchases and recommend your services," said Barritt. "Satisfied employees remain longer, go the extra mile and act as ambassadors when it comes to recruitment."

He emphasised the link between customer and employee measures. "There is a clear and obvious link between the two. If there is a low employee score one year, unless you act on it the customer score goes down the next year."

However, too many organisations conduct measurement surveys without acting on the results. "Don’t just do it," said Barritt. "Do it as long as you do something with it."