Modern day consumers don’t think of relationships with retail brands as simply transactional — they see brands as an extension of their identity. That’s why building relationships with customers, and treating them as part of the brand, is imperative for business success.
According to a new Kustomer survey, nearly eight in ten Americans say that they wouldn’t shop with a retailer ever again if they encountered bad customer service.
From social media to old fashioned emails, Americans contact retailers 125 times a year – that’s every three days. The survey of 2,000 Americans asked their thoughts and opinions on customer service practices and experiences – and found that Americans aren’t that forgiving when it comes to bad customer service experiences.
In order to remedy their relationship with retailers, 82 percent of respondents are in agreement that retailers should proactively reach out when there is a problem with an order. Those most likely to agree with this sentiment were those aged 55 to 64 and those 65 and older – at a whopping 90 and 94 percent, respectively.
One point of contention between generations, is whether retailers should know their consumers and personalize their interactions with them. Of those age 25 to 34, three-quarters said they expect this personalized communication from retailers, whereas those 65 and older disagreed with this notion at nearly 40 percent.
“It’s clear that the digital age has transformed what the modern day consumer expects from retailers,” says Brad Birnbaum, CEO of Kustomer. “The younger generation not only wants instant resolution to their problems, they also demand personalized interactions and availability across all channels. Retailers must put a customer service strategy in place, and leverage the right tools, to deliver on these expectations.”
This older generation also disagrees with the age-old expression that “the customer is always right” – at 58 percent; but over half of those 65 and older, get very frustrated when they have to repeat information to customer service – that’s 10 percent more likely than those aged 18 to 34.
Sixty-six percent of those aged 25 to 44, however, do agree that “the customer is always right.”
Perhaps speaking to this expression, over half of respondents said they would post an online review after a bad customer service experience, and another four in ten (41 percent) would take to social media to complain.
In order to avoid the hassles of bad customer service experiences, 74 percent said they would spend more money just to get better customer service.
“Customer service can impact business success from end to end,” says Birnbaum. “Delivering a bad experience could not only mean a lost customer, but also a PR nightmare. Conversely, by providing exceptional service, customers are willing to spend more time and money with your brand, building brand loyalty and lifelong customer relationships.”
Read our retail report to access the full survey results, including insights on the importance of real-time support, personalization and omnichannel service.