Rethinking Customer Service - Humanising for Better Outcomes

Current Customer Service Landscape

In 2024, the UK Customer Satisfaction Index (UKCSI) dropped to its lowest level since 2010[1] with the 2025 data showing only a marginal increase on previous years.

This represents a very real commercial challenge.

Customers who have had a bad experience or problem have an average UKCSI score[2] of 59.5 compared to 79.1 for other customers. This impacts customer retention, marketplace reputation as well as broader implications such as staff engagement and the cost of managing and or resolving escalated complaints.

In fact, The Institute of Customer Service estimates the monthly cost of dealing with problems, complaints and service failures, measured in staff time, to be £7.3 billion.[3]

Excellent customer service blends process (channels, tools, availability and ease of complaining, response times, use of Ai/chat bots etc.) and human interaction (how customers feel they are treated).

Interestingly though, the most recent research shows the biggest difference between the most and least satisfied customers are satisfaction with complaint handling, emotional connection, levels of trust and perceptions of care.[4]

So, how can businesses consistently integrate these elements, not just with simple complaints but also with the most challenging disputes and vulnerable customers?

Addressing the Core Challenge

CEDR’s extensive experience in resolving disputes ranging from multi-billion, multi-jurisdictional claims, through to relatively low value consumer complaints, points to one common factor in breaking deadlock – people.

Across the disputes spectrum this is often forgotten as many look to fast-track to problem solving and presenting solutions, or ignoring the uncomfortable emotions at play in favour of ‘cold hard’ numbers and logic.

Or, they think the solution is to only to speed up response times, triage more effectively, improve chat bots and so on.

However, this will only get you so far and, in some instances, set you back.

What’s more, the problem is becoming more difficult. The research, and indeed our own management of thousands of consumer complaints annually highlights some worrying trends.

Across the board, customer behaviour is becoming increasingly aggressive, both in person and over the phone to the extent, 75% of employees in customer-facing roles experience customer aggression, and 25% face it every week or more.[5]

Leaving aside clear cases of unacceptable behaviour, businesses need to grapple with a new era of customer interactions.

This is being driven by combination of factors including financial pressures and worries brought about the cost-of-living crisis, erosion of trust and increased anxiety caused by social media and heightened expectations and awareness of consumer rights (sometimes misinterpreted). Together, you have a perfect storm of customer aggravation.

The challenge for businesses is how to meet this challenge.

The Solution - Humanise the Process

When customers complain, they are not just reporting a problem; they are expressing emotions—fear, anger, frustration, sadness, or even despair. 

Ignore these and you will struggle to get to the root cause of the complaint, struggle to find a way forward (or at the very least it will take twice or triple the time) and struggle to keep them loyal, let alone spend more with you.

There is a different way and at its heart it is very simple. Treat people as people and (re)humanize the process.

Real Outcomes from a Human-Centric Approach

For over 10 years CEDR has worked with hundreds of companies across a range of sectors from telecoms and aviation to sewerage and funerals to resolve deadlocked disputes with consumers as alternative to going to court.

However, in the last three years we have started to partner with companies not just on the resolution of disputes, but on taking a proactive approach to prevention.

For instance, in the first year of our partnership with Vodafone on this preventative approach:

• Customers awaiting resolution dropped from 3,000 to 300.

• Average resolution time decreased from 22 days to 4 days.

• Complaints referred to external adjudication fell by 39.6%.

What (Re)Humansing Looks Like

When working with Vodafone on a project to transform their escalated customer care, we drew on our 35 years’ experience of the process and skills of mediation.

We emphasised the importance of;

• Human centric approach – focus on people, their emotions and the underlying drivers of their behaviour. 
  
  
• Dialogue – not shying away from speaking directly to customers and engaging in a meaningful conversations.
  
  
• Process – having a framework for working through deadlock and difficult conversations making sure you properly explore what is going on
  
  
• Active listening – an enhanced skill set that is critical to building rapport, demonstrating empathy, ensuring people feel heard and exploring the challenges at play
  
  
• Comfort with discomfort - being able to stay with the conversation, even when it becomes incredibly challenging and embracing it is an opportunity to move forward

A Case in Point

Following training with CEDR, a Vodafone escalated customer care representative, Sarah (not her real name), successfully applied this human-centred approach.

She handled a complaint where a customer demanded £400 in compensation despite their issue being resolved. He had already been offered goodwill payments but insisted on £400 or he would escalate to Ofcom. In the past, Sarah would have issued a deadlock letter, allowing the complaint to progress to external adjudication.

This time, she took a different approach:

• Active Listening: She allowed the customer to fully express their concerns, demonstrating empathy and understanding.

• Summarising: She restated his perspective, reinforcing that she had heard him.

• Pausing: She gave herself time to think and let the customer fully articulate his thoughts.

• Exploring: She asked why he felt £400 was a fair amount, prompting him to explain his reasoning.

• Problem Solving: Sarah proposed a fresh start in their relationship. With a maximum offer of £100 in mind, she framed her final offer as six months of free mobile service, totalling £96.

The result?

• The issue did not escalate to Ofcom.

• The complaint was resolved at a lower cost than expected.

• The customer remained with Vodafone.

Conclusion

By prioritising human connection, businesses can resolve complaints more effectively, enhance customer trust, and drive better commercial outcomes.

A human-centred approach is not just a ‘nice-to-have’—it’s a commercial necessity in today’s challenging customer service landscape.

References

[1] https://www.instituteofcustomerservice.com/research-insight/ukcsi/

[2] The UKCSI is based on 59,500 responses from an online customer panel. Customers rate their experience of an organisation they have recently dealt with on over 25 metrics of customer satisfaction, covering Experience, Complaints, Customer Ethos, Emotional Connection and Ethics. The measures are based on The Institute’s research into customer stated priorities and attributes that correlate strongly with high levels of customer satisfaction.

[3] https://www.instituteofcustomerservice.com/research-insight/ukcsi/

[4] https://www.instituteofcustomerservice.com/research-insight/ukcsi/

[5] https://sonder.io/uk/resources/guides/customer-aggression-report/