Customer Service Surveys Don’t Work. Here is Why.

This is from Peter Roesler, a contributing writer for the Business Journal newspapers.

It appears that retailers truly only have one chance to make a good impression. LoyaltyOne and Verde Group r eleased a study that found four out of five consumers who have had a bad customer experience don’t provide feedback, and only a small percentage will give retailers a chance to fix the issue.

The study of 2,500 U.S. consumers found that nearly half of consumers have experienced a problem when they shop, but only 19 percent of consumers will tell the retailer to give them a chance to address the problem.

Dennis Armbruster, VP and managing partner at LoyaltyOne, noted in a news release, “The results are a resounding confirmation that poor customer experiences have a considerable negative impact on shopper spend and attrition, which can run into the billions.”
Brick and mortar problems

The researchers noted some of the ways that these unsatisfied customers can cost retailers money. Among these silent shoppers, about one in three said they were unlikely to recommend the retailer to friends and family, putting these shoppers at risk of decreasing their spend with the retailer.

The study also found that customers who spend the most are the more likely to be annoyed by a negative experience. Shoppers frustrated by checkout wait times reported spending 23 percent more than the average mass retail customer.

Department stores should be concerned about the attitude their employees show. Shoppers troubled by an associate’s not-my-department attitude reported spending twice as much as the average department store customer.

For years I have told clients that surveys are an inaccurate way to track customer satisfaction. Not only are customers only interested in completing a survey if there is a reward, or if they are dissatisfied; but surveys also rely on a customer’s memory to relate the experience. Human memory is horribly flawed. A business is better off using first-hand observation.

Stevie Ray
For more, go to www.stevierays.org

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