Survey Says Customer Service Is Lacking

Whether they shop in retail stores or on the Internet, nearly all consumers value customer service, according to a national survey by the National Retail Federation Foundation (Washington) and American Express Co. In fact, 99 percent of shoppers said that customer service is at least somewhat important when they’re deciding to make a purchase.

Although many store operators have continued to focus on customer service, most shoppers are only lukewarm about their most recent customer service experiences. According to the survey, only 16 percent of traditional shoppers were extremely satisfied with their most recent customer service experience, and 51 percent were very satisfied.

In contrast, 44 percent of online shoppers were extremely satisfied with their customer service experience, and 45 percent were very satisfied.

“Many retailers are putting renewed emphasis on customer service, but shoppers are telling them that even more needs to be done,” said John Theiss, vice president for retail industries for American Express Establishment Services. “This study identifies a wide range of service improvement opportunities that can have a meaningful impact on shoppers.”

The most important elements of good customer service to traditional shoppers revolve around retail employees and the store environment, the survey showed.

The benefits of first-class customer service can be great for a retailer, but the ramifications of low-grade customer service are severe. Traditional shoppers who had a bad customer service experience told 3.1 people, while online shoppers told an average of 2.8 people.

“Consumers like to share the highs and lows of their shopping experiences with family and friends,” said Katherine T. Mance, vice president of the NRF Foundation, the education and research arm of the NRF. “It’s no stretch to say that a single customer-service experience, whether positive or negative, affects a retailer’s sales from a variety of consumers, not just one.”

Traditional shoppers have mixed opinions about retailers’ efforts to provide good customer service. While 40 percent believe retailers have become more committed to providing superior customer service in the last few years, 38 percent believe retailers are less committed than they were several years ago. [February 2005 PET AGE]

WHAT SHOPPERS WANT
When it comes to customer service, certain factors represent hot buttons for people who shop in retail stores.
Accurate pricing on items 71%
Employees who don’t pressure them to buy merchandise 69%
Employees who behave courteously 67%
Employees who treat them like valued customers 65%
Stores that handle post-sale problems promptly 63%
Employees who are available to answer quest ions 61%
Easy-to-understand return policies 60%
Fair return policies 60%
Neat, clean stores 60%
No-hassle returns 59%

Source: NRF Foundation
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