Why UK Consumers Will Pay a 37% Premium for Better Service

In an age dominated by talk of AI and automated customer experiences, a major new report on UK consumer expectations delivers a clear, human-centric message: Efficiency is king, but the live contact centre agent still wears the crown.

The 2025 “Understanding the Modern Consumer” report, a survey of 1,000 UK adults by TCN and Talker Research, shows that businesses that try to replace human interaction with bots are not only frustrating customers—they’re leaving serious money on the table.

For UK businesses focused on brand loyalty and profitability, the path forward is clear: streamline human-to-human interactions and use technology to support, not supplant, knowledgeable contact centre agents.

Customer Service as a Revenue Driver

The most striking finding for any business owner is the direct link between service quality and profitability. The survey revealed that consumers are willing to pay an average of 37.1% more for a product or service if the brand offers superior customer service compared to a lower-priced competitor.

This margin fundamentally changes the conversation about customer experience (CX) from a cost centre to a profit driver. Businesses can increase product cost and retain or even improve profit margins by investing wisely in their contact centre operations. This willingness to pay more proves that cost and quality of customer service are equally the top factors (57% each) when a consumer chooses one company over another.

Automation Hesitancy Remains Strong

Despite the advanced capabilities of today’s AI, a significant portion of the UK public remains skeptical when it comes to customer service:
The survey shows 42% of British people still prefer to talk to a live contact centre agent by phone when communicating with a company while one in four (25%) respondents will immediately try to speak with a live person when they encounter automated service options. Over half (52%) feel more comfortable giving secure information, like credit card or account numbers, to a live person rather than an automated system.

Consumers are not rejecting technology outright, but they are drawing a firm line where urgency, complexity, or sensitive data is involved, making the human agent a non-negotiable part of the customer journey.

Efficiency is Paramount

While consumers want to talk to a human, their patience has limits. Efficiency is the single most valued characteristic of a customer service department (58% of respondents), closely followed by the agent’s ability to solve the issue (56%).

The biggest frustration? “Waiting on hold for a long time” (44%). The average tolerance for waiting on hold is just 11.6 minutes. Businesses routinely exceed this limit, with the average longest hold time consumers reported being 28.8 minutes. This is a critical point of failure that can lead to immediate abandonment, as 78% of consumers are likely to abandon a brand after just one poor service experience.

Your Guide to Turning Data into Dollars

The full TCN eBook, Understanding the Modern Consumer, offers a blueprint for businesses to apply these findings and secure the loyalty premium. The key lies in leveraging technology to make the live agent experience fast and effective.

Here’s how businesses can start today:

1. Prioritise First-Call Resolution (FCR)

The data shows that 46% of issues are not resolved on the first contact, and 39% of consumers commonly need to speak to at least two agents.

This indicates a massive opportunity for improvement. Focus on agent training and better resource access. Equipping agents with comprehensive knowledge and the authority to make decisions is essential, as 56% of consumers value an agent’s ability to solve the issue. Use cloud-based contact centre platforms to provide agents with a unified view of the customer journey, preventing the need to transfer calls to multiple departments.

2. Drastically Reduce Wait Times

The 11.6-minute hold time tolerance is a hard limit. Exceeding it means risking customer defection, as 33% of frustrated callers will simply hang up and try again later, delaying resolution and increasing operational cost.

Contact centres should implement technologies like intelligent call routing and virtual hold/callback options. Routing a customer to the most qualified agent immediately ensures efficient service and drastically cuts down on the time wasted being transferred or put on hold, respecting the customer’s time and meeting the demand for quick resolution.

By shifting focus from replacing agents with automation to empowering agents with the right technology, UK businesses can meet the modern consumer’s high standards for speed, security, and a reassuring human touch—ultimately converting better customer service into significant brand loyalty and a higher margin of profit.

 

 

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