Razor-sharp Shoppers Give Stores a Customer Service Time Bomb

A new survey says the recession has sharpened consumer’s demands for better customer service and retailers who haven’t learned lessons could lose out in the recovery. It’s a customer service time bomb for stores which fail to shape up.

The survey says poor service could cost High Street stores millions of pounds and drive customers away for ever.

Research by Retail Active, Britain’s leading mystery shopping company, says a record number of British consumers are now prepared to complain about poor service.

Seventy one per cent of shoppers say they wouldn’t suffer shoddy service in silence – the highest figure ever recorded.

More than half the shoppers surveyed believe customer service has declined in the past year. Eight out of ten wouldn’t shop again at stores giving poor service.

Almost as many said they would spend more on products at stores with good service and more than a quarter said they complain more than they did before the start of the credit crunch.

Retail Active’s managing director, Julian Chamberlain said: “Stores will be having to deal with a customer service time bomb.

“The recession has sharpened customers’ demands and more than ever before – seven out of ten - say they are prepared to complain about poor service.

Retail Active has identified several types of shopper who can damage businesses if they are not happy.

“The most dangerous for stores is the “Silent but Deadly” type, says Julian Chamberlain.

“According to our research, nearly a third of customers never complain at all – but they never go back either. And what is worse for retailers, they tell on average nine other people about their dissatisfaction.

“If the average customer value is £100 – that means every silent complaint costs a company at least £900. These figures are confirmed by the Office of Fair Trading, which puts a figure of £935 on the cost of each complaint.

“On the positive side customers who do complain and have their complaint well handled, tell on average 12 people about the great service they received. There is a distinct commercial advantage in good customer service.

“With internet sales booming – online companies are just waiting to welcome customers disillusioned with the High Street.

“This is really a crunch year for retailers, those who haven’t learned lessons from the credit crunch could lose out. Our survey shows that customer service will be the vital ingredient in deciding whether customers stay for next year – or desert in droves.”

Retail Active is one of the UK’s leading Customer Intelligence and Mystery Shopping companies. It sends out thousands of agents every year to monitor customer service standards for a wide variety of clients in the retail, leisure, automotive and travel sectors.