Invest
What is the cost of poor customer service?
Retailers could be letting themselves down, with poor customer experience costing billions, new research has found.
What is the cost of poor customer service?
Retailers could be letting themselves down, with poor customer experience costing billions, new research has found.
Results collated by LivePerson Customer Conversation Report has found that retailers are losing a combined $3.17 billion in revenue due to poor customer satisfaction.
Commenting on the data, APAC head of customer engagement at LivePerson, Kate Sterling, said 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. 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,” Ms Sterling said.
“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.”
However, the research also found that COVID-19 could see an improvement in customer service as retailers battle online shopping.
“Interestingly, Victorians (who have experienced Australia’s toughest lockdown measures to date) are the most positive about the future of customer service, with 47 per cent saying they believe the COVID-19 pandemic will ultimately lead to better retail customer service experience from brands compared to 39 per cent nationally,” Ms Sterling said.
Another standout finding from the LivePerson research was that the pandemic has accelerated customer adoption of digital tools and technology as part of their shopping experience.
“In fact, only 30 per cent of Australians now prefer ‘in-person’ customer service when they have a question they need answered when asked what they have become more comfortable with during the pandemic,” Ms Sterling said.
A roadmap out of the crisis
While businesses cannot control the pandemic or lockdowns from governments, Ms Sterling pointed out that improving customer care could be a roadmap out of the crisis for many retailers.
“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,” Ms Sterling concluded.
About the author
About the author
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
Spending
7 surprisingly simple ways to save money and help the environment
The rising costs of living is providing consumers with a rare win-win scenario by saving money and helping the environment. ...Read more
Spending
How much are you wasting on unused subscriptions?
Australians are continuing to pay for subscriptions they are not using, costing households up to $2,000 a year, new banking figures have revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
