Problem resolution key driver of customer loyalty – study

Problem resolution key driver of customer loyalty – study

Customers that are highly satisfied with problem resolution are 21% more likely to return than those who were highly satisfied but didn’t experience a problem, new research has shown.

According to the poll of over 100,000 UK retail and leisure customers by SMG, 17% of those highly satisfied customers are also more likely to recommend a brand.

Jeremy Michael, MD at SMG, said: “As the UK high street fights for survival amid the proliferation of e-commerce, store closures and a double–dip recession, this research provides food-for-thought for retailers to identify trends,  improve customer service and, ultimately, sales.”

The survey, which analysed the impact of customer service on brand loyalty and sales, also found that customers who experience positive staff interaction and assistance spend 39% more than those who are not helped or greeted.

British retailers not providing customer assistance are missing out on as much as £45.38bn per year, said the figures.

In terms of the overall customer experience, the survey revealed customers aged 25-49 are the least satisfied whilst under 18 year-olds are 31% more likely to claim an exceptional service than customers aged 25-34.

Michael added: “Retailers need to consider the varying satisfaction levels across varying customer demographics. In particular, UK retailers should educate staff about the misperceptions in relation to young and older customers and ensure all customers are receiving excellent customer service.”

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