29th Nov 2018
Retailers who fail to deliver ‘excellent’ customer service during Black Friday risk losing £1.4 billion* in loyalty sales the following year, according to new research.
The figures released by The Institute of Customer Service reveal that shoppers who experienced ‘excellent’ service during Black Friday 2017 rewarded that same retailer with an average loyalty spend of £205.40 – £53 more per person than those whose service experience was just ‘good’.
Jo Causon, CEO of The Institute of Customer Service, comments: “ The research exposes the disparity in attitudes towards organisations who offer ‘excellent’ levels of customer service, and those whose service is only ‘okay’. Nine out of ten people who received excellent service during Black Friday shopped with that retailer again, 37% more than those who received ‘okay’ service.
Causon continues: “Great prices and great customer service needn’t be mutually exclusive. With ‘excellent’ service during Black Friday translating into £1.4billion in subsequent sales over the following year, the opportunity for retailers to retain customers and boost profits is significant.
“Experiences during Black Friday will impact customer loyalty outside of the Christmas period. Out of date stock could damage reputation and prevent return custom. In the same vein, queues and a stressful shopping experience will have a similar effect. Retailers without adequate staff numbers could impact the conversion of new custom into long-term relationships, and affect the loyalty of existing customers.”
To find out more about how to deliver an excellent customer service experience, visit www.instituteofcustomerservice.com/
The Institute of Customer Service commissioned TLF Research to speak to 2000 consumers in September 2018.
Notes to editors
*Our calculations explained:
UK adults = 51.7m in total (ONS)
62% shopped on Black Friday = 32.1million shoppers
23% of Black Friday shoppers had excellent customer service = 7.4million shoppers
91% of these shopped again = 6.7m shoppers
They reported to spend a subsequent £205.40 each = £1.4 billion total ‘loyalty spend’ from this group
This is the amount retailers who don’t offer excellent service this Black Friday stand to miss out on.
For further information please contact:
Rebecca Peck, Sophie Lanning, Bethan Davies
E: [email protected]
T: 020 7010 0826 (Sophie Lanning) 020 7010 0877 (Rebecca Peck), 0207 010 851 (Bethan Davies)
About The Institute of Customer Service
The Institute of Customer Service is the professional body for customer service delivering tangible benefit to organisations and individuals so that our customers can improve their customers’ experience and their own business performance. The Institute is a membership body with a community of over 500 organisational members – from the private, public and third sectors – and over 4,000 individual memberships. For more information about the Institute of Customer Service go to www.instituteofcustomerservice.com