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Surveys and research

Are you being served?

28 November 2011

Disappointed consumers are being driven away by sub-par customer service according to research by SAP – business analytics director Colin Sharp shares his tips for making the customer king

Colin Sharp
The economic downturn continues to bite but as Christmas arrives consumers will be putting their hands in their pockets. It’s an unmissable opportunity for businesses to win back customer loyalty by delivering superior customer service.

Customer service is the most influential factor when it comes to making purchasing decisions, according to SAP consumer research conducted in September 2011. The quality of the service received defined the specific shops visited and even took precedence over price. It suggests that, with the right personalised service and in depth product knowledge, customers are willing to spend more money.

The customer remains king. Only 12 per cent of those surveyed by SAP said they had recently received good customer service, and almost half (42 per cent) of respondents say they wouldn’t return to a shop for at least six months after receiving bad or inadequate customer service. This has serious implications for businesses at a time when they can’t afford to lose custom.

Five tips for getting to grips with your customer service

1. Learn from each other. Consumers believe they get the best service in independent stores, meaning big brands could benefit from imitating the independents’ personalised approach.

2. Bridge the digital divide. The internet is the first port of call for many customers so it is vital retailers stay up to date with the channels needed to reach their audience; online and otherwise. The Christmas period is the ideal time to start capitalising on the different social channels customers use.

3. Keep it simple. The majority of consumers still prefer to make the final purchase in store rather than online. One of the main reasons consumers choose to shop online is to save time – so retailers can drive online sales by making the process as easy and simple as possible.

4. Go mobile. Don’t forget that customer service isn’t only applicable in-store. Customers are increasingly using different mobile and online services to access information and buy products. To deliver the best customer service businesses must deliver information whenever and however customers want.

5. Explore all channels. Smart retailers should proactively promote through multiple channels and find out which is most popular with the customer. As the use of smartphones increases, an easy-to-use app could be a differentiator and help businesses remain competitive.

SAP customer service survey statistics

  • Of the consumers surveyed 8 out of 10 are unhappy with the customer service they receive and believe businesses could do more
  • Only 12 per cent of respondents said they had recently received good customer service
  • Almost half (42 per cent) said they wouldn’t return to a shop for at least six months after receiving bad or inadequate service
  • Independent shops deliver the best customer service according to 55 per cent of those surveyed, only one quarter think the same of department stores
  • Though the majority (65 per cent) of consumers still prefer to shop in store, only 2 per cent of those surveyed said they had never shopped online
>> SAP customer service research video report

Colin Sharp is director of business analytics, technology and line of business solutions at SAP UK & Ireland.


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Comments
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13. If you have a "contact us" facility on your website, please reply! Don't ignore your customers, don't assume that they are not important. They certainly think they are, and should be treated accordingly.

By the way I am resisting the urge to name and shame a large international watch manufacturer for this very reason.... you've had my money, and you've probably had my watch in your repair shop longer than it's been on my wrist! It would have been cheaper to rent it!

Iain Beck (02/12/2011 09:34:23)

It is better the 21st century company's to practice Internal Marketing.SURELY it goes along way at addressing the problem of poor customer care.

We surely know that 70% will not come to explain their point after experiencing bad service or at any customer seller interface.

Moses kalem(ACIM-UK)

moses kalema (01/12/2011 11:04:19)

Absolutely agree. Just yesterday I received excellent customer care from one of two companies involved in a purchase. didn't expect any reply from their "contact us" web page, but got a real person e-mailing in a human, humorous way and resolved the issue even though it turned out that technically, I was actually at fault. They'll be getting more of my business in future, i've facebooked and tweeted about them and have raved about them to two different people already. Sad thing is it's probably not a problem for them to do it, but to get any customer service at all these days sometimes feels like a massive bonus! They outshone the other company involved in the purchase by about 100 per cent, who came back with their standard automaton reply which neither resolved my issue not made me feel valued as a repeat customer.

rosaleen kelly (30/11/2011 13:04:41)

12. Train your staff! Is there anything worse than asking for advice and information only to discover that the seller knows less about their product than you do?

Iain Beck (30/11/2011 12:48:10)

Empower staff to address customer service issues. Too often staff feel unable to fix a blatant wrong lest they get a bollocking! Staff should be encouraged to take responsibility thought some may shun this. So get rid! We need to stop this "nothing to do with me" culture.

alan gilmour (30/11/2011 07:51:08)

Put yourself in your customers' shoes for a moment – you will soon see what is wrong or inadequate. Keep staff on their toes and get feedback from them - they can help you sort out problems as well.

David Horchover (29/11/2011 15:24:30)

6. Get some staff on the tills

7. Get an iron and use it for staff uniforms

8. Get lazy managers out of their offices onto shop floors to support their busy colleagues

9. Get some staff onto tills

10. Get some staff onto tills

11. Yes I know I'm repeating myself!!

Stewart McLurg (29/11/2011 14:53:50)

The outcome of the SAP research is real and practical. Consumers do get inadequate customer service in almost all of their purchase experiences. A dissatisfied customers will never become loyal and seeks alternative products during their next purchase instead of a repeat purchase. Unrivaled customer care should be the driving force of any business interested in retaining its existing customers and winning prospects from competitors through references. Satisfied customers will always be good ambassadors in the market and will influence their colleagues to buy from their preferred suppliers.

DAMIAN NGERE OGOLA NGERE OGOLA (29/11/2011 13:54:27)