Every year we produce a snapshot of opinion in Britain today, looking at customers’ lives in terms of attitudes towards service and main economic indicators. The survey is now in Year 7, and based on 1,000 adult interviews each wave.
I have to report that the April 2011 survey contained very little to cheer about – I guess many of you will not be surprised. Various surveys report on consumer confidence levels and most have been pretty negative, especially when comparing growth prospects in the UK with France and Germany. Despite some upturn during May (Bank Holidays and Royal Wedding impacts), it’s likely that our survey reflects more accurately the longer term challenges still widely faced. You can read some of the detail elsewhere on this site here.
An example of the significant pervasive pessimism is that when asked how household disposable income had changed in the last 12 months, 57% felt it had gone down whilst only 13% felt their situation had improved. This gap has in fact grown 11% wider in the last 12 months, rather than closed up at all. Those hardest pressed are families and adults aged 35-55. The same negative sentiment is reflected by other important survey measures, such as perceptions of how much we are saving and levels of job security. On all measures, perceptions are more negative than 12 months previously.
Given these pressures it is not surprising to find that over half said they had used cheaper brands and outlets more often in recent months. The emphasis is very heavily on value in Britain today. This means that price comparison websites are all the more powerful as channels and influencers. But at the same time people need an escape, and will pay for good service. A consistent surprise on this survey has been the 2:1 majority who reject the idea that companies can cut service right back, if only they can lower their prices.
So in summary, customers do want really decent levels of service protected, and will reward this effort with loyalty. At the same time, products and services need to work especially hard to communicate the extra value they provide for their customers, above and beyond the competition.