It is likely that changes made to ensure compliance with any new regulation will have some significant repercussions. The gambling industry, for example, has indicated that the implementation of a £2 cap on FOBT stakes (as suggested by the media) would result in the closure of many betting shops across the UK.
That being said, any potential loss of revenue caused by regulation could be offset by an improved consumer-business relationship – and this can offer significant benefits to businesses.
Studies have shown that an increase of only 5% in customer retention rates can cause an increase of up to 95% in revenue, and, as we see in our data concerning consumer satisfaction (CSAT) and net promoter score (NPS), regulated industries tend to have higher scores than unregulated ones. The housing market has, for example, previously sat at NPS and CSAT scores of around 3 within Resolver’s system, retail (another unregulated sector) sits at a score of 4 for both metrics, while flights and PPI have average scores of around 5 for NPS and 6 for CSAT. In part, this indicates that companies within regulated industries with a clear route for consumer redress are more likely to have improved customer retention rates – potentially representing an opportunity for increased revenue!