Hot SourceThe Nigeria Customer Service Index report for 2024, which assessed service delivery and customer experience across various business and social service sectors in Nigeria, has revealed that customer experience remained low in some sectors, even though customers deserve the best treatment in every business transaction, writes Emma Okonji
The Nigeria Customer Service Index (NCSI) serves as a national benchmark for evaluating customer perceptions of the quality of products and services across the country. The index captures insights from both Nigerian citizens and non-Nigerians residing in Nigeria, offering a comprehensive view of customer satisfaction and service delivery. The NCSI 2024 report assessed customer experiences, the factors influencing satisfaction, and their broader impact across key economic sectors. Compiled by the West African Association of Customer Service Professionals (WAACSP) in collaboration with an independent research and consulting firm, the report provides a cross-sector analysis of customer experiences. By establishing a standardised framework for evaluating service quality, the NCSI continues to serve as a valuable tool for measuring and improving customer satisfaction across various industries.
Evaluation
Chairperson of WAACSP, Yvonne Ohui MacCarthy, said the report would serve as a vital benchmark for evaluating the state of customer service across various sectors in Nigeria, reflecting the collective efforts of businesses and organisations committed to enhancing customer experiences. “The 2024 report reveals notable advancements in customer service performance, particularly in sectors such as real estate, telecommunications, and hospitality. These improvements are indicative of a growing recognition among businesses of the need to prioritise customer satisfaction and adapt to evolving consumer expectations. However, we must also acknowledge the challenges faced by certain sectors, such as insurance and power, where customer satisfaction remains a pressing concern,” MacCarthy said.
Speaking during the report presentation at a media conference in Lagos recently, WAACSP Country Director for Nigeria, who doubles as Head of NCSI Group, Mr. Christian Anozie, spoke about the relationship between WAACSP and NCSI Group, adding that the NCSI Group is a member of WAACSP. Anozie said the survey report covered over 100 organisations in 12 sectors and 21 sub-sectors of the Nigerian economy, and ran from May 1 to December 31, 2024, while considering diverse age, education, and income brackets of the respondents.
According to him, the partnership between NCSI group and WAACSP will continue to advance the annual index report, adding that it will help sector players and regulators lay the ground work for sustained improvement that will enable Nigeria meet global customer service standards.
Customer Service Metrics
The 2024 report, which is the second edition of the annual assessment of service delivery and customer experience, is structured around eight key indicators of customer experience, which include: Trust, Branch Availability, Branding and Appearance, Competence, Complaint Resolution, Ease of Doing Business, Processes and Procedures, and Professionalism/Customer-centered Innovations. The key metrics formed a robust framework for measuring and articulating the genuine interactions customers have with businesses. The metrics were used to evaluate the physical environment of an organisation, including the appearance of its premises (both interior and exterior), branding consistency, ventilation, and overall ambiance. It also considered the grooming, approachability, and professionalism of employees, including third-party staff such as security personnel and other workers.
By analysing these elements, the assessment aims to identify the factors that drive customer satisfaction, loyalty, and the link between positive experiences and brand advocacy. The ultimate goal is to gain deeper insights into the customer journey across different industries, enabling organisations to refine their service delivery.
The NCSI model is built on a cause-and-effect framework, where customer experience metrics serve as the driving factors, and the resulting levels of satisfaction and loyalty form the outcomes. Utilising a quantitative research design and a randomised sampling approach, data collection was conducted throughout the year via both online and offline channels. A significant number of responses were gathered, with rigorous data validation ensuring the accuracy of the findings. Analysing the technical details of the report, Lead Consultant at WAACSP, Emmanuel Ijaba, said: “To analyse the data, scripts were developed for cleaning and modeling, with visualisations generated using Microsoft Power BI. Customer experience scores were converted into percentiles, with weighted adjustments to reflect the importance of each metric as indicated by respondents.”
The Objectives
According to Anozie, the objectives of the survey are to: Gain a deep understanding of customer motivations, changing needs, and the importance of customer experience metrics to customers; Identify the factors that impact customer satisfaction in various industries and how they affect loyalty; Provide businesses with a clear and intuitive understanding of how to improve customer experience in various industries; Determine the channels through which customer experience occurs and offer improvement strategies to enhance the customer experience across sectors; Determine Nigeria’s overall progress in customer service as time goes on, among others.
Key Findings
Out of the 12 sectors that were surveyed in 2024, Transportation ranked highest with 73 per cent, followed by Finance and Hospitality, which tied at 72 per cent each. Insurance came fourth in the survey ranking with 71 per cent, followed by Heathcare, which ranked fifth position with 70 per cent. Education and Sports/Entertainment sectors were next in the ranking order, with a tie at 69 per cent each to clinch the sixth position.
Telecommunications and the Public Sector also tied in the raking order at 63 per cent each, to clinch the eighth position, followed by Real Estate, which ranked 62 per cent to win the 10th position. The Power sector ranked 61 per cent to win the 11th position, while e-Commerce sector ranked 60 per cent to win the 12th position.
According to the report, Transportation sector emerged as the top-performing industry with a 73 per cent rating, surpassing the Hospitality sector with 72 per cent, which dropped from its 2023 first-place ranking, while the Real Estate sector, Power sector, and E-Commerce sector, ranked lowest at 62 per cent, 61 per cent and 60 per cent respectively. The report however said the Public sector showed notable improvement, rising from 47 per cent in 2023 to 63 per cent in 2024.
The report revealed that Nigeria’s overall Customer Satisfaction Index improved to 67 per cent in 2024, up from 61 per cent in 2023, indicating marginal growth.
Presenting the report, Fellow, WAACSP, Mr. Olatunji Adeleye, who is also a member of NCSI Group, harped on significant industry trend from the survey findings. According to him, the public sector growth of 16 percentile score, representing 47 per cent in 2023 score and 63 per cent in 2024 score, is remarkable.
Other significant industry growth as highlighted by Adeleye, included: Telecommunications ranking, which rose from 58 per cent in 2023 to 63 per cent in 2024; Healthcare ranking, which rose from 62 per cent in 2023 to 70 per cent in 2024; Transportation ranking, which rose from 61 per cent in 2023 to 73 per cent in 2024; and Financial Services ranking, which also rose from 66 per cent in 2023 to 72 per cent in 2024.
Top Performing Sectors
The report highlighted the top-performing companies by sectors and sub-sectors. In the Real Estate sector, the top-performing companies include: Lekki Homes & Gardens, Sujimoto Group, and Primerose Properties. For Finance sector, which was categorised under Banking and Fintech, Opay and Moniepoint were listed as top-performing companies in Fintech, while Wema Bank, First Bank, Sterling Bank, Access Bank and UBA, were listed as top-performing banks in that order.
For Aviation sector, Ibom Air, Airpeace, and Arik were listed as top-performing airlines. For Hospitality sector, Eko Hotels was ranked highest among the hotels ranked. For Power sector, Ikeja Electric (IKEDC) was ranked highest in performance. For E-Commerce, Slot was ranked highest in performance. For the Transport sector, Uber was ranked highest for intra-city transport, while NEM Insurance was ranked highest in performance for general insurance in the Insurance sector, and Redcare HMO was ranked highest in performance in the Metro Health HMO sector. For the Healthcare sector, Reliance Family Hospital (Private), Uni-Abuja Teaching Hospital, were ranked highest.
For the Telecoms sector, MTN Nigeria was ranked highest for performance, while FiberOne was ranked highest in performance among Internet Service Providers (ISPs).
For the Education sector, which was categorised under public and private education, Obafemi Awolowo University was rated highest (Public), while Covenant University was rated highest (Private). For Eateries: Mega Chicken and Chicken Republic were rated highest. For Sports Gaming, BetWay was rated highest in performance.
Suggestions for Improvement
The report looked at key areas like customer feedback, training and development, technology utilisation, benchmarking, customer-centric culture, transparency and communication, and advised business owners on how to improve customer relations in order to grow their business. In the area of customer feedback, the report advised business owners across all sectors to implement regular customer feedback mechanisms, such as surveys and focus groups. “By actively seeking input from customers, businesses can identify specific pain points and areas for improvement. This will enable organisations to make informed decisions that enhance the overall customer experience,” the report said.
In the area of training and development, the report advised on continuous training programmes for customer service representatives, for maintaining high service standards. “Investing in employee training not only equips staff with the necessary skills to handle customer inquiries and complaints effectively but also fosters a culture of excellence within the organisation. Well-trained employees are more likely to engage positively with customers, leading to improved satisfaction,” the report said.
In the area of technology utilisation, the report advised organisations to leverage technology that would significantly enhance customer service efficiency. “For instance, implementing customer relationship management (CRM) systems and chatbots can streamline service processes, reduce response times, and provide customers with quick access to information. This is particularly relevant for sectors like telecommunications and e-commerce, where customers expect prompt and efficient service,” the report said.
In the area of benchmarking against global standards, the report advised that organisations should consider benchmarking their customer service practices against global best practices. “This involves researching successful customer service strategies employed by leading companies worldwide and adapting them to local contexts. By learning from global leaders, businesses can identify innovative approaches that can enhance their service delivery,” the report said.
In the area of customer-centric culture, the report said fostering a customer-centric culture remained vital for long-term success. “This involves ensuring that all employees, regardless of their role, understand the importance of customer service and are empowered to make decisions that benefit the customer. Organisations can achieve this by incorporating customer service excellence into their core values and performance metrics,” the report further said.
In the area of transparency and communication, the report said transparent communication remained essential for building trust with customers in sectors such as public services and utilities. “Organisations should provide clear information regarding service processes, updates, and any potential disruptions. By keeping customers informed, businesses can enhance customer satisfaction and mitigate frustration during service interruptions. By implementing these recommendations, organizations across various sectors in Nigeria can continue to improve their customer service performance. This will not only enhance customer satisfaction but also foster loyalty and drive business growth in an increasingly competitive landscape,” the report added.
Nitti-gritty of the Report
While the general report offers a broad overview of customer service performance, the report further explained that organisations could derive even greater value by requesting a customised sector or sub-sector report. These bespoke reports provide targeted insights tailored to a specific industry niche, allowing businesses to better understand their unique service landscape and make better data driven improvements. A customized report facilitates benchmarking against industry peers, offering a clear comparison of an organisation’s performance relative to competitors. The comparative analysis highlights areas of strength and pinpoint weaknesses, equipping businesses with the knowledge to enhance service delivery, expand market share, and establish themselves as industry leaders.
“Unlike generic reports, a sector-specific analysis delves deeply into industry intricacies, presenting actionable recommendations that align with an organisation’s market segment. By focusing on trends and challenges unique to the sector, businesses can make more informed decisions and allocate resources effectively to improve customer experience. A customised report incorporates detailed customer feedback from respondents within the organisation’s sector. This direct insight into customer perceptions, expectations, and pain points enables businesses to refine their services and improve overall satisfaction,” the report further said.
