More consumers opt for ethical service providers

Whether it’s implementing a green policy or being known as a fair employer, companies with a better public image are increasingly finding themselves ahead of the competition, including those who are offering the cheapest deals.

The findings, part of our recent research report, reveal that customers are becoming increasingly aware of the reputation of the businesses they spend money with, and are giving more weight to corporate social responsibility when choosing a supplier – with 12% saying this would be the main issue when evaluating a provider.

Another 16% say they would switch providers if their current supplier became involved in a public scandal, like being exposed for poor customer service for example, or instances similar to the 2015 emissions scandal at Volkswagen.

Our report shows that companies must think harder about how they will retain or gain customers, beyond just offering cheaper tariffs or deals.

Among the other reasons for consumers to switch providers, 33% said they would change suppliers as a protest against poor customer service, 18% would switch as a reaction to poor handling of a claim and 20% would switch if acting on the advice of experts in the media.

Price, of course, remains a motivating factor for the majority of consumers, and 61% would switch to avoid a price increase, while 36% review their bills and providers when household budgets get tight.

In addition, a third (33%) of consumers now review their bills and service providers on an annual basis.