Featured Article
February '09 |
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Research suggests that excelling in service may be the best way for retailers to beat the credit crunch
The survey of 3000 shoppers, by Envision Retail, looked at changes in behaviour over the past two years. The survey reports that customers ask for help 60% less frequently than they did two years ago. However, shoppers now have higher expectations.
Shoppers are becoming experts in talking themselves out of a purchase – it only takes one thing to be wrong for them to change their minds. Very often the problem is not the product, rather it is the service received from staff.
Consumers feel fragile. In this climate it is the retailers who engage their staff and make the customer experience as smooth as possible that will succeed.
This research by Envision has demonstrated a direct link between service levels and sales. Research by American Academics for the International Journal of Hospitality Management has conclusively proven that better service feeds a virtuous cycle of returning to the store, higher spends and word-of-mouth recommendations.
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Sources: Envision Retail, Retail Week 03/10/08.
International Journal of Hospitality Management, ‘Influence of institutional DINESERV on customer satisfaction, return intention, and word-of-mouth’ (28:1, 03/09), by Woo Gon Kim, Christy Yen Nee Ng and Yen-soon Kim.