Retailers let down by poor customer service, report says
There is no difference between online sales and bricks and mortar when it comes to customer service; if it’s bad Aussies will still ‘walk away’, according to the latest LivePerson Customer Conversation Report.
Thirty-eight per cent of Australians were not satisfied with their most recent retail customer service experience and seven out of 10 (71 per cent) have abandoned an online purchase at checkout in the past 12 months, amounting to an estimated $3.17 billion in revenue foregone.
Commenting on the data, APAC head of customer engagement at LivePerson, Kate Sterling, says that Covid-19 has disrupted the retail sector and increased customer expectations, but in too many cases these aren’t being met.
“Customers now hold much more power,” she explains.
“They are more judicious about what they buy, they are buying more online and they expect their questions to be answered in real time, wherever they are and through whatever channel they prefer.”
The research shows that 42 per cent have been unhappy with delivery details or options, while 34 per cent want to do more research before making a purchase. Thirty per cent have been unhappy with the price and 20 per cent have not been able to find everything they need, while 17 per cent have been unable to have simple questions answered easily online.
“Consumers are far more comfortable engaging with brands through new channels than many brands think. They’re already ready. They’re already doing it, and that’s the gap that retailers need to fill in order to gain a competitive advantage,” says Sterling.
Indeed, the pandemic has accelerated customer adoption of digital tools and technology as part of their shopping experience, the report found. In fact, only 30 per cent of Australians now prefer ‘in-person’ customer service when they have a question they need answered.
“Businesses can’t control the pandemic, but they can improve their approach to customer care.
“Australian consumers want a mix of physical and digital shopping experiences that prioritise communication, convenience and speed, alongside safety.
“The retailers that will do well this Christmas and, in the years to come, are those who care about customer experience and use technology to augment a personal approach,” she adds.