Service shocker! Better service sees customers spend more!by
Smiles at the ready as new research has revealed that friendly service will see customers spend 40% more than those that receive unsatisfactory service.
That’s according to a new report by customer insight agency SMG, which analysed the opinions and purchasing patterns of 359,000 UK customers. The study found that UK shoppers’ average spend jumps from £21.73 to £30.41, when shoppers have a positive in store experience.
So what’s the biggest factor influencing satisfactory service? According to the findings, staff assistance is most important with 43% of those surveyed citing it as the biggest driver of an excellent experience.
Even when assistance is not given, a simple friendly interaction of the shop floor causes 32% of respondents to rate their experience at the shops as satisfactory or higher whilst staff knowledge with product recommendations was shown to increase basket size by 15%.
The research also reported a trend of browsing online before buying in-store – the antithesis of showrooming, whereby consumers use their mobile in-store to shop around online for a cheaper deal.
According to the figures from SMG, nearly 50% of under-18 year olds pre-shop via the web before buying on the High Street, compared to the national average of 30%, and just 17% of over-55s.
Jeremy Michael, MD at SMG, said: “The statistics show that customers who begin their shopping experience online before buying in-store spend more money. Consequently retailers must not see the industry as a battle between digital and physical, but a potentially lucrative combination of the two.
“The in-store experience needs to offer something the internet can’t provide such as personalised human interaction. Stores should prioritise equipping staff with the knowledge and training techniques needed to ensure customers are assisted successfully, knowing doing so will increase spend.”
Recent research from Google Shopper Council and M.A.R.C Research support these findings that consumers that browse online first spend more in physical stores. The study compared the in-store purchases of moderate and frequent smartphone users and found that basket sizes of shoppers who use their mobile in-store were 25-50% higher.