Following our call for optimism this time last week, it was good to hear the more positive ‘mood music’ following the Government’s investment summit held on Monday.
There was good reason to cheer the announcement of £63bn in investment, which was more than double that of last year’s Global Investment Summit – along with the prospect of nearly 38,000 new jobs nationwide.
It’s been a strong week for the economy too, with new data showing a larger-than-expected fall in inflation to 1.7% in September and better retail stats released today.
While these positives come as a welcome injection to the system, we must use this momentum to continue to push for the long-term growth we all desire.
Consumer-centric regulation is inherently pro-growth
Amid a host of rallying speeches and investment pledges, regulation took centre stage for large parts of Monday’s summit. I suspect it’s a topic that will hold the headlines in weeks to come.
It was promising to hear the Prime Minister challenge regulators to prioritise growth as we see an opportunity here for the regulators to drive and support the right behaviours and focus on a stronger service outcome that is not just the short-term gain. Our research on regulation, released two weeks ago, found that 73% of consumers want to see more regulation to better protect their interests, while 79% of consumers believe regulation has a key role to play in driving up service standards.
Growth-focused regulation should therefore seek to drive the right outcomes for the economy, businesses and customers by protecting the most vulnerable, supporting rather than hampering innovation, and rewarding those businesses that do right by their different stakeholder groups.
For me, striking this balance comes down in large part to taking a more consumer-centric approach. This means outlining a robust definition of what good customer service looks like, developing consistent measurements for customer satisfaction that consider the whole customer experience and setting clear targets and markers for success.
This is not just about service delivery – this needs to be considered across the whole business with a focus on the customer touch points through the right products and services, pricing and delivery. As our research highlights, ensuring an excellent end-to-end experience requires a positive organisational Culture, robust and consistent customer satisfaction measurement, collaboration and continuous learning. Regulators can encourage this by defining good customer service, strengthening the customer perspective in their decision-making, and developing their own internal expertise in customer experience.
In doing so, regulation has the potential to be, by design, pro-growth. By encouraging a more customer-focused culture within businesses, increased customer satisfaction will follow. This is typically a precursor for increased consumer confidence and the associated spending that translates into better business performance and long-term economic growth.
Confidence in the Service Nation
This week, vital foundations were laid for future growth in the UK. That said, government, regulators and businesses must carefully consider how to build on these as we look ahead to the Budget and beyond.
Pro-growth, customer-centric and outcomes-focused regulation is a vital part of the puzzle. We will all benefit from demonstrating our belief in the UK’s economic potential, as the new investment minister Poppy Gustafsson has encouraged.
As regular readers will know, I am certain that any plans for growth necessitate proper consideration of the service agenda. This includes investing in the service profession with appropriate training and improving against the service standards that The Institute sets and drives.
So, with the right mix of confidence and focus on what matters, we can forge an exciting, modern nation in which service is synonymous with excellence – and which leads the way on the global stage.
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