Consumer Action Monitor - Ombudsman Services

Jan 3, 2014 - rise of social media increasing the risk ... The key findings of the Consumer Action Monitor are: .... Many also see the benefits of companies.
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Consumer Action Monitor January 2014 Key Findings and Methodology

Foreword

This year, 2014, is shaping up to be the year of consumer rights. Despite an improving economic outlook for Britain, households are being squeezed by the costs of everyday living. As a result consumers increasingly want value for money without having to compromise quality. At the same time, people feel increasingly alienated from the companies that they purchase things from and are more willing than ever to express their feelings, with the rise of social media increasing the risk to brand and reputation. We’ve seen evidence of this in our everyday work at Ombudsman Services, where we handle complaints on behalf of thousands of organisations, from energy providers to surveyors. Every day, we see the risks that companies run by not handling customer complaints in the appropriate way and the huge reputational rewards of providing a good customer experience.

“Every day, we see the risks that companies run by not handling customer complaints in the appropriate way”

Because we are at the front line of consumer action, we want to find out more about this, which is why we have created the Consumer Action Monitor.

It is, we believe, the most comprehensive guide to consumer redress and activism yet created, giving us an outstanding insight into consumer attitudes to the goods and services they buy and use. And because we intend to repeat it on an annual basis, it will help us to identify emerging trends. I’m happy to say that companies and policy-makers have already recognised some of these trends and are acting on them. The Consumer Rights Bill, which recently had its second reading in parliament, aims to bring consumer protection up to date with the digital world, while a forthcoming EU directive should make ombudsmen, already a popular alternative to the courts, much more visible to British consumers. We also know that all of the political parties recognise the growing importance of fairness and consumer rights and this is likely to be a key battleground in the 2015 election. We hope that our research will help to inform and drive this vital debate.

Lewis Shand Smith Chief Ombudsman

Methodology

Executive summary

 The Consumer Action Monitor was commissioned for the first time in January 2014 and the intention is that it will be repeated annually.  Research was commissioned by Ombudsman Services and carried out by ICM Research between 3rd - 5th January 2014.

METHODOLOGY

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Online omnibus: nationally representative sample of adults aged 18+

NUMBER OF INTERVIEWS n = 2,023

COVERAGE OF FIELDWORK

Great Britain, with quotas by gender, age, region, social grade, work status and tenure

FIELDWORK DATES

3rd - 5th January 2014  Certain extrapolations have been made based on the findings in order to estimate the numbers of complaints that have taken place nationally, regionally and within particular industry sectors. These extrapolations, made by ICM are based on an ONS audited GB adult population figure of 47,536,000.

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...million complaints about products or services in 2013 The key findings of the Consumer Action Monitor are:  There were a total of 38 million complaints about products or services in 2013.  Consumers’ appetite to complain about products and services is on the increase. o Almost a third (32%) say they are more likely to complain about a product or service than they were 12 months ago.  The most common sectors for complaints were energy (17%), retail (17%), internet telecoms (14%), transport (5%) and travel (6%).  Despite the increasing appetite to complain, millions of Briton’s still choose to ‘grin and bear it’. o 40 million problems were not acted upon at all, as consumers choose to keep quiet. o Many are daunted by the legal process, with around one in twenty (6%) taking problems to the small