Online reviews more important to customers than social media

While John Lewis and Waitrose come out tops once again - yet more proof that engaged employees give great service - the latest UK Customer Satisfaction Index from the Institute of Customer Service shows that providing space for onsite reviews of products and services is five times more important to UK consumers than a social media offering

Less than one in ten of UK consumers expect firms to run a Twitter account, whilst marginally more (14%) expect to be able to interact with brands through Facebook. However, 41% view an onsite facility to provide reviews of products and service as a standard element of any good corporate website. Indeed, more than half (54%) of consumers use such a facility when it is provided.

As expected, younger consumers are more inclined to demand a Facebook or Twitter facility of the brands they buy from than older groups. For example, more than a fifth (21%) of 18-24s expect companies to run a Facebook page, compared to only 13% of the 35-54 age group, and 7% of the over 55s.

These findings suggest a new direction for British businesses, which should now consider investing more resources in improving 'voice of the customer' initiatives and customer service performance.

According to Jo Causon, chief executive of the Institute of Customer Service, "Businesses must wake up to the fact that the relationship between companies and their customers has changed irrevocably. Customers now hold the power, and they expect to be able to make their voice heard by sharing their experiences with the world online."

Indeed, Causon argued, by denying customers the right to reply on an open platform, businesses not only risk irritating existing customers but they miss the opportunity to gain valuable feedback, leaving them unaware of and unable to rectify problems when they arise.

The research also found that much more work needs to be done to improve the dialogue between customers and companies when complaints are made online. While more than half (55%) of consumers expect a response to an online complaint the same day, only 29% actually received one. More worryingly, 12% reported having to wait at least a month for a response.

Causon concluded: "21st century consumers will post their concerns and experiences online, and if companies don't provide a facility to do this on their own web site, customers will turn to social networking sites to share their thoughts. If it is a complaint they have to share, their frustrations could be viewed by millions around the world, resulting in much more significant brand and relationship damage than was ever possible with simple word-of-mouth."

Top five performers in the satisfaction index by sector are:

Automotive sector
1. Mazda — 80.6
2. Honda — 80.3
3. BMW/Mini — 80.2
4. Toyota — 79.6
5. Mercedes Benz — 79.0

Finance (banks) sector
1. first direct — 84.0
2. The co-operative bank — 83.0
3. Nationwide — 78.5
4. Bank of Scotland — 76.2
5. Lloyds TSB — 75.5

Finance (insurance) sector
1. BUPA — 83.7
2. SAGA — 82.0
3. LV= — 81.1
4. Churchill — 79.7
5. Esure — 78.9

Public services (local)
1. Your local Ambulance Service — 81.1
2. GP surgery / health centre — 76.4
3. your local Police Service — 63.2
4. your local council — 57.5

Public services (national)
1. The Identity & Passport Service — 77.8
2. Post office — 74.3
3. NHS / hospital service — 74.0
4. DVLA — 73.6
5. Royal Mail / Parcelforce — 66.9

Leisure
1. Your local restaurant — 85.0
2. Your local fish & chip shop — 83.2
3. Pizza Express — 82.5
4. Toby Carvery — 81.5
5. Greggs / Baker's Oven — 81.0

Retail (food)
1. Waitrose — 87.8
2. Marks & Spencer (food) — 85.1
3. Sainsbury's — 80.9
4. ASDA — 80.8
5. Tesco — 79.5

Retail (non–food)
1. John Lewis — 87.9
2. Lloyds Pharmacy — 86.3
3. Boots — 84.3
4. Marks & Spencer — 83.9
5. Ikea — 81.1

Services
1. your local hair dresser — 86.8
2. your local electrician — 83.3
3. RAC — 83.1
4. AA — 82.5
5. Enterprise Rent-A-Car — 81.6

Telecommunications
1. O2 — 78.1
2. T–Mobile — 77.2
3. Sky — 76.2
4. Vodafone — 74.6
5. Orange — 74.1

Tourism.
1. SAGA — 85.8
2. Virgin Holidays — 85.4
3. Marriott — 85.3
4. P&O Cruises — 82.1
5. Hilton — 81.0

Transport
1. Eurotunnel — 83.0
2. Virgin Atlantic — 81.2
3. P&O Ferries — 80.8
4. British Airways — 79.8
5. Easyjet — 75.7

Utilities
1. Scottish and Southern Energy (SSE) — 75.5
2. Severn Trent Water — 72.9
3. EDF Energy — 70.7
4. Northern Ireland Electricity Service (NIES) — 70.4
5. E.ON — 70.4