Key Insights for a Productive Week: Customer Satisfaction, Promotions, and Hybrid Working Statistics

Customer satisfaction scores drop to pre-Covid levels

Customer satisfaction scores have returned to pre-Covid levels, witnessing a decline of 3.8% over the past year, as per research conducted by KPMG.

The study encompassed 13,000 UK consumers who were surveyed to gather their opinions on 376 brands. The findings reveal that nearly two-thirds (64%) of these brands experienced a decrease in customer experience scores across all categories when compared to the previous year.

First Direct ranked highest in customer satisfaction, with Lush and American Express following closely behind. John Lewis and Partners and Nationwide completed the top five. First Direct has consistently placed in the top three of the index for 12 out of the last 13 years. Interestingly, all of the top five brands have been in the top 10 at least once in the past three years.

Moreover, the research reveals that embracing AI early on has a positive impact on customer experience ratings. Financial services brands, in particular, are leading the way as early adopters of generative AI, utilizing it in content generation and language translation.

Source: KPMG

Over one in four UK groceries bought on promotion

Research from Retail Insight reveals that promotional purchases or discounted items account for 28% of British shopping baskets. Interestingly, the proportion is even greater among millennials (those aged 27 to 42), with over a third of their shopping baskets consisting of discounted goods.

Shoppers prioritize reducing their food expenses, with 82% actively trying to cut down on costs. In this regard, promotions in the fresh meat category are highly sought after, with 30% of shoppers expressing their increased likelihood of purchase when such promotions are available.

Furthermore, inflation has undermined brand loyalty, as 74% of the surveyed individuals have discontinued purchasing their beloved branded products due to their inflated prices. In fact, 72% now prefer supermarket own-label products unless the brand is discounted.

Source: Retail Insight

Most marketers wouldn’t accept a job that doesn’t offer hybrid working

A total of 73% of marketers, as per recruitment company Hays, state that they would not entertain the idea of accepting a job without the option of hybrid working. Marketers are significantly more inclined towards adopting a hybrid work style compared to the general working population, with approximately two-thirds of them choosing this approach. In contrast, only 39% of all professionals embrace a hybrid work model, while a mere 10% of marketers prefer working exclusively in an office.

Among professionals, 43% currently work exclusively in a physical office setting.

For marketers, the option to work remotely holds greater importance than salary. A significant 42% of marketing professionals state their willingness to accept a reduced pay in exchange for a fully remote position.

Marketing organizations are adapting their team structures in response to the growing trend of hybrid work. The majority, 77% of organizations hiring marketing professionals, now provide hybrid working options for their staff.

Of those businesses recruiting marketers, 78% expect that their hybrid working arrangements for staff will remain unchanged.

Source: Hays

Nearly two-thirds of British consumers believe sustainable companies will fare better commercially

According to a study conducted by digital transformation consultancy Publicis Sapient, a majority of British consumers (61%) believe that sustainable companies will outperform those that are not sustainable in the future. This percentage is higher than the global average of 54%. Moreover, over half (53%) of UK citizens state that they are more inclined to support brands that prioritize renewable energy sources and engage in social and environmental activism.

British consumers are leading the global average in their efforts to adopt more sustainable practices. An impressive 44% of UK consumers have reported an increase in their purchase of sustainable products, surpassing the global figure of 37%.

A majority of consumers (52%) express their belief in the transparency of businesses regarding their sourcing and production methods. However, a significant portion (36%) remain uncertain and hold a neutral stance on this matter.

Source: Publicis Sapient

Brands to spend record £9.5bn on Christmas advertising

According to data from the Advertising Association and Warc, advertisers are projected to spend a record £9.5bn during the Christmas season, marking a 4.8% increase compared to the same period last year. This growth can be largely attributed to inflation. Brands have significantly increased their investment in both emerging and traditional media. Broadcast video on demand is expected to see a notable 20.2% increase, while out-of-home advertising is set to grow by 10.3%, and online display advertising by 9.1%.

Television is still attracting a significant amount of spending, with an estimated £1.5bn expected to be devoted to it in the final quarter. This represents a small decrease of 0.2% compared to its total in 2022.

The Christmas advertising period is poised to provide an even larger boost to the advertising industry than usual. The performance in the fourth quarter will contribute an additional £430m to the total market value for 2023. In the first nine months, this figure stood at £486m, indicating that the festive season accounts for 47% of the overall growth this year.

Source: Advertising Association and Warc.