Importance of Customer Service Reinforced in
NRF Foundation/American Express Study
—Shoppers Find Customer Service Better Online than in Stores—

Washington, DC, November 23, 2004—Whether they shop at retail stores or on the web, customer service is important to nearly all consumers, according to a comprehensive national survey on customer service conducted by the NRF Foundation, an arm of the National Retail Federation that offers National Certification in Professional Customer Service and Sales, and the American Express Company. In fact, according to the survey, 99 percent of shoppers said that customer service was at least somewhat important when deciding to make a purchase.

Though many retailers have continued to focus on customer service in their stores, most shoppers have been only lukewarm about their most recent customer service experiences. According to the survey, just 16 percent of traditional shoppers were extremely satisfied with their most recent customer service experience while an additional 51 percent were very satisfied. In contrast, online shoppers were almost three times as likely to be extremely satisfied with their customer service experience (44%) and an additional 45 percent were very satisfied.

"Many retailers are putting renewed emphasis on customer service, but shoppers are telling them that even more needs to be done," said John Theiss, Vice President, Retail Industries, American Express Establishment Services. "This study identifies a wide range of service improvement opportunities that can have a meaningful impact on shoppers."

Personnel Most Important to Traditional Shoppers

The most important elements of good customer service to traditional shoppers revolve around retail employees and the store environment, according to the survey. In fact, nearly two thirds of shoppers feel that it is extremely important for retail employees to be courteous (67%) and treat shoppers like valued customers (65%). Consumers also dislike being pressured to buy merchandise (69%) and find it extremely important that employees are available to ask for help (61%).

Though also asked about hours, shopping atmosphere, and parking, customers said that the most important environmental factor for them is a neat and clean store, which 60 percent of shoppers said is extremely important.

Online Shoppers Value On-Time Delivery and Security

Customer service expectations of online shoppers vary greatly from those who shop in stores. According to the survey, the majority of online shoppers (88%) find a safe and secure website an extremely important component of good customer service. In addition, online shoppers want merchandise to be delivered on time (73%) and want the retailer to quickly handle questions and requests (74%).

Shoppers Main Concerns Include Information Sharing, Accurate Pricing

While generally focused on very different elements of the customer service experience, traditional and online shoppers had a few factors in common. First, both traditional and online shoppers find it extremely important that the retailer they do business with does not share their information with other companies (73% of traditional shoppers, 78% of online shoppers). Additionally, both groups felt that accurate item pricing was an essential component of customer service (71% traditional, 75% online) and they value retailers that promptly deal with merchandise problems after the sale (63% traditional, 74% online).

Return policies were also important to both groups. Not only do most customers want returns to be accepted without problems (59% traditional, 70% online), they want return policies to be clear (60% traditional, 70% online) and fair (60% traditional, 69% online).

The Effects of Customer Service

Retailers can be encouraged that most consumers who have a positive customer service experience will talk about it. Online shoppers were more likely than traditional shoppers to tell others about a positive experience (73% vs. 66%). Online shoppers told an average of 2.7 people about a positive experience, while traditional shoppers told 2.4 people about their experience.

Though the benefits of superior customer service can be great for a retailer, the ramifications of low-grade customer service are severe. Traditional shoppers were more likely than online shoppers to tell others about a negative shopping experience (70% vs. 64%). On average, traditional shoppers who had a bad customer service experience told 3.1 people, while online shoppers told an average of 2.8 people about their experience.

"Consumers like to share the highs and lows of their shopping experiences with family and friends," said Katherine T. Mance, Vice President of the NRF Foundation, the education and research arm of the National Retail Federation. "It's no stretch to say that a single customer service experience, whether positive or negative, affects a retailer's sales from a variety of consumers, not just one."

The Good News: Many Consumers Think Retailers Are Trying to Improve

Traditional shoppers are split over the efforts they think retailers are making to provide good customer service. While 40 percent feel that merchants have become more committed to providing superior customer service in the last few years, 38 percent think merchants are less committed now than they were several years ago.

In contrast, 71 percent of online shoppers agree that merchants' customer service efforts have improved in the last several years, while only 8 percent believe that online merchants have become less committed.

About the Survey

The NRF Foundation/American Express 2004 Customer Service survey was designed to gauge consumer attitudes toward retailers' customer service. The survey sought to better define consumer perceptions of good customer service both in retail settings and online, as well as to identify service improvement opportunities that could have the most meaningful impact on shoppers. The survey, which polled 1,280 consumers, was conducted from May 6-17, 2004.