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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.
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