UK telecoms operators make record compensation pay outs in 2017
According to a new report, there has been a dramatic increase in the amount of compensation being paid to customers by telecommunication firms in the UK.
The percentage of complaints resulting in a pay-out to the customer has risen since last year to 82%, a year on year increase of 15%, with the average compensation pay-out being £50.
“Consumers will no longer accept a poor customer experience, hidden costs, or sub-standard services – and organisations that aren’t keeping up are paying a heavy price,” said Shashi Nirale, SVP and general manager for EMEA at Servion.
The communications sector has seen a huge rise in complaints, which are up 132% (from 12,715 to 29,503) on last year, as operators struggle to keep up with customer expectations in the age of 4G.
Causes for complaint include customer service, billing and contract issues. This serves as a warning for telecoms operators to look at their complaints handling procedures in order to address these problems.
Despite paying out compensation as a goodwill gesture, the report shows customers remain dissatisfied with the service they’ve received from the telecoms operator to the extent they are more likely to take their business elsewhere.
“Paying out for the majority of customer complaints is simply not sustainable. Businesses must look at new ways of engaging with customers – using new technologies such as AI and robotics – to ensure they receive personalised, up-to-date and efficient service. Those that fail to do so will see profits fall, as increasingly disloyal customers seek out their competitors.”
The latest telecoms complaints data from Ofcom (for the second quarter of 2017) revealed BT as the most complained about provider for fixed broadband and Pay TV, as well as being second from top for its pay-monthly mobile service.
BT received 28 complaints for every 100,000 customers with regards to broadband services, as compared to Sky, which received the fewest complaints of any telecoms provider, at just seven per 100,000 customers.
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