Retailers with better customer service post stronger sales results, according to new research from the Institute of Customer Service (ICS).
The 2012 UK Customer Satisfaction Index (UKCSI) found that in challenging conditions for the retail industry, customer service is playing an increasingly crucial role in determining business performance.
The most recent report analysed the relationship between service excellence and retail sales performance over Christmas, demonstrating for the first time a direct correlation between the two.
Jo Causon, chief executive of ICS, said: “Our research provides compelling evidence that service is the critical differentiator in a tough retail environment.
“Customer churn is set to cost UK businesses £2.2bn this year. In this context, those retailers that focus on delivering the service their customers expect will prosper.”
The retail industry continues to lead the UKCSI: the non-food and food sectors are the best and second-best performers respectively, with scores of 81.9 and 81.3 out of a maximum 100.
Amazon, Marks & Spencer, John Lewis, Boots, Superdrug, Aldi and Waitrose all feature among the top 10 organisations for customer satisfaction.
The two food retailers with the highest customer satisfaction ratings were Waitrose and Aldi, both scoring 84.6. Despite having very different models and target customers, they also achieved the greatest gains in market share over the Christmas period – Waitrose by 0.2%, Aldi by 0.4%.
Causon said: “Our research proves that customer service is the key to sustainable growth in the retail sector. The success of Waitrose and Aldi – two very different business models – goes to show that it’s not just being the cheapest, or having the best products, that drives growth. Delivering an experience that meets the needs of your target customers is essential.”
Source: Institute of Customer Service (ICS)
