Food retailers have been overtaken by banks and building societies in the latest UK Customer Satisfaction Index (UKCSI), marking the first time since the benchmark launched in 2008 that retail has lost its lead.

Nationwide topped the index with a score of 87.3 out of 100, followed by John Lewis (87.1), first direct (86.0) and M&S Food at 85.7, underlining the continued strength of retail brands despite the wider sector shift.

The Institute of Customer Service said the banking sector’s improvement reflected a sharper focus on customer satisfaction, loyalty and retention.

While banks and building societies have benefited from investment in training and technology, grocery operators face similar pressure to deliver a strong in-store experience as customer expectations continue to rise.

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M&S Foods was the only grocer in the top 10, with Jet2Holidays taking the tourism crown and Petplan the favourite insurer.

This latest index looked to highlighted the link between good customer service and sales. Three times as many people are willing to spend more for a higher level of customer service than are price-sensitive: 34.4 per cent compared to 11.6 per cent.

The latest UKCSI data also showed that customers who score an organisation as a nine or 10 for customer service are almost twice as likely to recommend it to others as those who give a score of eight (by 94.8 per cent to 54.3 per cent). Half of shoppers are then more likely to remain a customer.

“In a competitive landscape, we are seeing winners emerge who build trust, do the right thing and deliver a product and service experience that their customers genuinely value,” noted Jo Causon, CEO of The Institute of Customer Service.