February 19, 2019 Comments Off on Is Customer Service Killing Retail Sector? Views: 753 National News

Is Customer Service Killing Retail Sector?

By Dennis Kaiser

Customer service has emerged as a key factor for U.S. adults when choosing where to shop and how much they will buy, according to a survey by the International Council of Shopping Centers (ICSC). Findings of the recently-released 2019 poll reveal nearly two thirds (65%) of consumers said that the quality of customer service is a factor when deciding where to make their purchases, and more than two thirds (67%) said that good customer service encourages them to stay longer and/or spend more money.

For all major product categories, positive, in-person customer experience increases the likelihood of a purchase. More than half (57%) of people said that they would pay more for an item or service if they know they will receive good customer service. Overall, the majority (73%) of respondents said that receiving good customer service from a retailer increases the likelihood that they will spend more money than they had planned.

“Nearly 60% of consumers said that they’re more satisfied with customer service in-store than online, which speaks to the value of the in-person experience,” said Tom McGee, president and CEO of ICSC. “Even in the age of online, the human element remains a vital component of success for shopping centers and retailers as they invest and re-invest in their physical presences.”

Overall, the expectations for good customer service have increased in the past three years. Nearly 50% of consumers said expectations are considerably higher than three years ago. More men than women said that their expectations are higher, and more Millennials feel this way than older demographics.

The most important aspects of customer service in-stores:
– Friendly and/or knowledgeable employees (62%)
– Ability to easily find items (59%)
– Speed and ease of checkout (59%)

The most important aspects of customer service online:
– Speed of delivery services offered (55%)
– Ability to easily find the items (49%)
– Flexibility of return/exchange policy (45%)

The survey also revealed the leading frustrations. Long checkout lines, not being able to find employees to help, and negative employee interactions or ‘pushy’ salespeople are the top frustrations for customers shopping in-store. Shipping fees, receiving the wrong item, and complicated return processes frustrate online consumers the most. These reasons illustrate that, across channels, convenience and personalization are vital aspects of customer service.

Regardless of a good or bad customer service experience, more than 90% of people are vocal about it, demonstrating that the impact and quality of customer service extends beyond the immediate interaction. If a retailer provides good customer service, the majority of consumers will either shop at the retailer again, or recommend it to friends and family.

Connect With ICSC’s McGee


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For comments, questions or concerns, please contact Dennis Kaiser

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