The economic mood across the UK should be a more positive one, with last week’s data showing several improvements in many key areas of the economy. As I discussed on Wake Up to Money earlier this week amongst other things, the early signs of rent rises relaxing is good news. And not only for customers, but also for employers who could see an easing of some of the inflationary pressures associated with higher rents, such as a need for higher wages and difficulties in attracting the right talent.
However, the latest public sector finances data, released on Wednesday, is a reminder that there are still challenges ahead. These green shoots should certainly be taken as a sign of encouragement, but we mustn’t lose focus on driving sustainable, long-term growth across all sectors.
One way to achieve this is to unlock the UK’s productivity, which currently falls short of where it needs to be at 0.1% lower than this time last year. As a service economy, with services accounting for 80% of UK GDP, prioritising the service agenda seems to me a good place to start – and starting requires us to really lean into how we prioritise the rights skills and deployment of technology to get the best outcomes for all.
Service as a bellwether for business and economic performance
The Institute’s latest UK Customer Satisfaction Index (UKCSI), released last month, reveals that service performance closely aligns with what is going on in our country’s economy.
That the decline in overall customer satisfaction has slowed to just 0.8 points year-on-year, compared to 1.8 the year before, provides some evidence that we’re beginning to move in the right direction, albeit slowly.
However, it’s clear there is much work to be done if we are to turn a corner when it comes to service – and start to see that much needed uptick in our UKCSI. Until we do, organisational productivity will continue to lag, impacting not just the bottom line of individual organisations, but the entire economy.
Boosting productivity in the service nation
With that, where should service-led organisations focus to address this productivity shortfall?
In the first instance, getting things right first time is essential – something July’s UKCSI showed top-performing businesses do well. Some of the biggest gains in satisfaction compared to July 2023 were for the number of experiences rated as “right first time”.
Doing so not only makes your customers feel valued and understood, but ensures resources are maximised and deployed most efficiently, allowing staff to use their time to address improvements and more innovative solutions, looking at the root causes rather than simply addressing the impact of when things go wrong.
Second, the UK is enduring a sector-wide skills shortage. To combat this, organisations need to make sure they are training and upskilling their employees – for today and for the future. In a world as fast paced as the one we find ourselves in, understanding data and how we deploy to create better customer outcomes is essential, balanced with the highest levels of intuition, curiosity and emotional intelligence.
The future will mean that those in customer service roles will be highly sought after individuals, attracting these people to our organisations will be critical.
Lastly, striking the right balance between people and technology has the potential to significantly boost productivity.
As our data has shown, technology isn’t a silver bullet when it comes to service – in fact, 63% of customers are concerned about the potential loss of human interaction when needing to process customer service issues.
Rather, technology should be viewed as a tool. When integrated thoughtfully, operated and supported by trained staff, and backed up by other channels for consumers to engage with companies, technology has an essential role to play within the service proposition.
As I also discussed on Wake up to Money this week, it’s about the end-to-end user experience – no matter the channel or touchpoint.
Driving economic performance through service
If UK PLC is serious about driving economic growth, improving efficiency and productivity across all sectors will be key – not least, in the services sector.
By addressing and improving their service offering, businesses will be well placed to address some of these productivity issues at an individual level – in turn, enhancing their service offering and boosting their bottom line.
Wider than that, this will have a direct impact on overall productivity in the UK and allow us to turn these early positive signifiers into long-term prosperity and growth.
On a personal note I hope that those reading the weekly statement are continuing to find it interesting and useful and I thank you for your feedback I will be taking a short hiatus from my weekly column for the next few weeks, but look forward to discussing how we can further future proof the UK economy as we head into the Autumn stretch.
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