Details of a bad shopping experience often go unreported, as 81 percent of consumers who have a bad experience do not tell the retailer. As many as 32 percent of shoppers were unlikely to recommend a retailer to a friend after a bad experience and were also considering decreasing spend with that brand, according to an online survey by LoyaltyOne and VerdeGroup.
"The results are a resounding confirmation that poor customer experiences have a considerable negative impact on shopper spend and attrition, which can run into the billions," Dennis Armbruster, VP and managing partner at LoyaltyOne, told BizRate. "We're ushering in a new era of customer experience measurement vital to retailers looking to make even more informed decisions."
As of March 2015, about half of the 2,500 U.S. consumers surveyed had reported a bad shopping experience. Some shoppers were willing to confront retailers about their bad experience. Of that group, 84 percent were less likely to decrease their future spend once their issues were resolved.
In addition, the study revealed that big spenders within a category disproportionately experience certain customer service problems with a retailer. For example, shoppers frustrated by checkout wait times reported spending 23 percent more than the average mass retail customer, showing potential for a greater loss with these frustrated customers. And shoppers troubled by an associate's attitude reported spending twice as much as the average department store customer.
An associate's attitude can make or break a store experience, as evidenced by Trader Joe's high performance rankings. The grocer ranked as shoppers' favorite grocery store three years in a row due to its diverse selection and exceptionally friendly service.
Another retailer known for its customer satisfaction is Nordstrom, which topped the list of consumers' favorite fashion retailers in 2015 for the third year in a row, according to a study by Market Force Information. Nordstrom also tops the list for most engaged retail brand on Pinterest, according to a recent data collection on Curalate.
-See this LoyaltyOne press release
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