London Daily

Focus on the big picture.
Wednesday, Jul 16, 2025

Cost of living: Firms warned consumers want more than low prices

Cost of living: Firms warned consumers want more than low prices

Businesses need to be flexible and transparent with their customers who face rapid price rises - in order to get loyalty in return, according to The Institute of Customer Service.

Nearly six in 10 consumers (58%) said low prices would become more influential in choosing where to shop and what to buy, its survey found.

Jo Causon, the institute's chief executive, said value was still vital.

Practically, that could include more choice over how to pay.

She said customers did not want products and services that were "just cheap". Staff needed to be understanding of the financial pressures their customers faced and offer a range of payment options.

They should also consider giving advice on budgeting or getting the most value out of products.

Firms should also gauge whether technology was the best solution to problems, and when a discussion with a real person was required.

A third (35%) of those surveyed still indicated that they would be prepared to pay more to guarantee excellent service.


Pressure on businesses


The institute questioned 10,000 consumers as part of a regular review of customer service, at a time when prices are rising at their fastest rate for 40 years.

A shortage of skills and staff, problems with supplies from around the world, and the economic environment were all putting pressure on businesses to deliver a consistent service for customers, the institute said.

"Organisations cannot avoid these issues. They will need to develop service strategies that are responsive to evolving customer needs but also protect short and long-term business performance," Ms Causon said.

The survey found 17.3% of those asked were experiencing a product or service problem, the highest overall level since records began in 2008. The quality and reliability of goods and services, in particular, was a growing problem, the survey suggested.

The cost of dealing with poor service added to ongoing expenses for businesses. The institute estimated the collective cost to be £9.24bn a month in staff hours.

Customer service staff coping with more hostility attributed it to the stress the rising cost of living is putting on their customers


Ms Causon said UK firms had got much better at dealing with, and resolving, complaints, but more work was required to prevent the problems in the first place.

A year ago, the institute warned that customers were fed up of companies using Covid as an excuse for long waits on the telephone or late deliveries - but that issue had now clearly been overtaken by the issues relating to the cost of living,

However, the institute has also stressed that the problems were not all one way. Some consumers have been violent and abusive towards staff in shops.

Recent data revealed 44% of frontline service staff had experienced hostility from customers in the past six months - a rise from 35% during the previous six months.

A quarter of staff who have faced increased hostility said they believed the increase was partly down to the sharp rise in the cost of living and the stress this had placed on customers.

The survey follows a critical report from Citizens Advice on customer service performance from energy firms.

On Friday, the charity - which ranks suppliers using a star rating system - said that standards had "plummeted" to a record low since June 2021 when several suppliers went bust due to high global gas prices.

The average waiting time on the phone to speak to a firm was now about six and a half minutes, compared with just under four minutes the year before, it said.

It added that standards risked falling further at the same time as prices would rise this winter.

This month, the Financial Ombudsman Service - an independent arbiter of unresolved disputes - also told financial firms to deal with problems quicker, especially for victims of fraud and scams.

Newsletter

Related Articles

0:00
0:00
Close
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
×