“Despite the mantra that the customer is king the UK retailer and leisure industries are not spending enough time and effort understanding its customers or on training staff to meet their needs and expectations. In not doing so, they are missing the opportunity to increase revenues and make more money,” customer experience research firm Service Management Group says in its new report, UK Customer Satisfaction Index – Championing the Customer Experience. Merchants did not fare well, scoring an average of only 6.1 out of 10.
SMG analyzed feedback from more than 100,000 retail and restaurant customers to create the index to measure the customer experience, the impact of staff friendliness and the availability of assistance and problem resolution.
The study showed a strong relationship between friendly customer service and sales. According to the research, customers who are greeted and receive assistance spend considerably more than those who do not.
“The staff makes the biggest impact on the overall customer satisfaction score,” SMG says. “The notion of staffless stores undermines the customer retail experience. This should be considered when exploring new design options. Reassurance by the staff to queuing customers that they are doing everything in their power to keep them moving is just as important as store design. Customers will be more understanding if they are recognized and dealt with accordingly. The staff should acknowledge potential customers immediately. In-store interaction is hugely important, and it needs to occur before the customer reaches the till.”
SMG adds that the value of a smile and good customer service can increase sales by as much as 39 percent. The battle is half won by drawing the customers in the store through discounts, sales and promotions. But to convert the shoppers to buyers, merchants need to excel in customer service to differentiate themselves from their competitors, according to SMG, which sites staff training as an essential element in improving customer service.
Customer service drops throughout the day, which has a negative impact on sales, particularly in the afternoon and evening hours. Poor customer service late in the day has a larger impact that it might earlier in the day, according to SMG because there is “an after-work customer ‘urge to splurge,’ with the average spend at the highest point of the day.”
Saturdays provide an even better revenue opportunity, but many UK merchants miss out on it because of lower staff levels, leading to longer lines and lower customer satisfaction.
An essential element of customer service is quickly and effectively solving issues such as items out of stock, long lines and similar matters. Effective problem resolution builds brand loyalty, increasing the likelihood that customers will return and will recommend the merchant to others.
The need for top-level customer service is more critical when serving older customers, according to SMG. “Customers under 18 are much more likely to say they had exceptional customer service during a shopping experience. Store managers [should] re-educate their staff on the importance of addressing each age group with the appropriate level of engagement. This is especially true when you realize that the 55+ age group has the highest disposable income.”
SMG recommended that merchants stress to staff the impact of friendliness and assistance on customer satisfaction levels and sales, and encourage the staff to use open-ended questions, such as “if you need anything, just ask” to prompt requests for assistance.