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Save Money and Solve Customer Service Problems

Bad customer service experiences and unsolved shopper problems at retail stores make retaining customers hard. And lost customers mean less revenue.

LoyaltyOne, a global leader in designing and implementing customer loyalty programs, and Verde Group, a research consultancy company, conducted a study to determine the revenue at risk when customers’ problems go unsolved.

The study analyzed a group of 2,500 U.S. consumers and found that about half of them experienced a problem during their last shopping trip. What happens after encountering the problem is where revenue can be hurt.

Of the consumers who experienced a problem, 81 percent decided not contact the retailer about their issue. Nearly one-third of these shoppers were unlikely to recommend the retailer to friends and family.

The 19 percent of shoppers who did notify retailers of their poor shopping experiences and had their problems resolved “were 84 percent less likely than silent shoppers to be at risk of decreasing spending,” according to the study.

Poor customer experiences have considerable negative impacts on shoppers’ spending at, loyalty to and recommendations of a business. More than eight in 10 consumers don’t give retailers a chance to fix problems, so top-notch customer service before, during and after a sale is vital to a store’s success.

For more information about the study, click here.

About Sara Logel

As NRHA’s market research analyst, Sara conducts organic research and stays abreast of industry trends to help hardware retailers better run their business. Sara also contributes to editorial content in Hardware Retailing magazine. Sara received her B.S. in Marketing and Spanish from Butler University and, after graduation, began her career with NRHA. Sara enjoys traveling, being outdoors and exploring the city of Indianapolis.

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