When you interact with a customer service channel for a retail brand, chances are you may be frustrated already due to the time you are taking out of your day and any problems you may be addressing. Add to this situation an unsatisfactory customer experience, and your frustration levels may shoot through the roof.
Do you think you will remain loyal to that retailer?
New research by KANA® Software, a Verint Company®, shows that poor customer service is having a negative impact on brand loyalty in the retail space: Nearly one-third of U.K. consumers (30%) have become less loyal to retail brands in the past five years. This is according to a study that surveyed more than 2,000 consumers, with one-quarter of them citing poor service as the primary reason for this decreased loyalty.
More specifically, customers take issue with the number of times they had to repeat their complaint to different people within the same company. Forty-eight percent – almost half— of respondents said they had to repeat information during their last communication with a retailer. And though all age groups said that repetition of information was a problem, it occurs most frequently with customers under the age of 35. One in 20 in this age group had to repeat themselves at least five times, with only 30% resolving their issue after one interaction.
Compare that to 64% of customers over the age of 65 not having to repeat their complaint at all and feeling satisfied with their customer service, and it is clear that some retail brands are in serious risk of driving away their younger customers.
“The younger generation has higher expectations of digital channels, collaborative and social communications and asks ‘how hard can it be’,” says Steven Thurlow, head of worldwide product strategy for KANA. “They won’t take seriously an organisation that is unable to do the basics right, and these expectations are rising all the time.”
Because many channels are being utilized for customer service, including web-based chat, email, phone, or in-person, it is important that all these touch points are integrated to make the customer experience seamless and as painless as possible.
“Without a true sense that different channels of communication are linked, people feel that they are wasting their time and, ultimately, this leads to an erosion of loyalty in the retail brand,” Thurlow adds.