The Link Between Customer Satisfaction and Customer Loyalty

By Mandy Reed, Marketing Manager (Global)

Twice a year the Institute of Customer Services releases their UK Customer Satisfaction Index (UKCSI) report which rates customer satisfaction across 13 industry sectors and the UK as a whole. Their most recent report, published in July 2015, shows that after two years of decline, overall customer satisfaction in the UK appears to have stabilised – a good sign for UK consumers and organisations.

In addition to just looking at satisfaction ratings, the index has also been tracking the relationship between customer satisfaction, sales growth and market share for the past three years and found evidence of a consistent link between satisfaction levels of customers and business performance. Across all sectors, UKCSI shows that consumers rating an organisation high for customer satisfaction were much more likely to trust, recommend and stay loyal to those companies.

UKCSI July2015


The link between customer satisfaction and customer loyalty is not a new revelation. However, organisations should take note of the significant difference in customer trust, recommendations and loyalty between organisations receiving the highest satisfaction scores of nine and ten (out of ten) and those receiving ratings just a point lower.

UKCSI July2015 B


Having highly satisfied customers is no easy task (especially given the ever growing demands of consumers for anytime, anywhere service and support), but certainly well worth the investment for organisations in order to build trusted and sustained customer relationships. Highly satisfied customers bring with them increased sales through their own long-term purchasing relationships as well as through their referral of new customers. In this world of social media and online reviews, there is no substitute for a loyal, trusting customer base willing to sing your praises.

For more information about UKSCI, including the July 2015 results, visit the Institute of Customer Service website.