Customer service letting retailers down

There’s been a huge, and very clear boom in e-commerce recently, with many retailers having to quickly adapt to the evolving retail space.

A new report however, shows that the customer service experience has been letting retailers down.

The report shows that 38% of Australians were not satisfied with their most recent retail customer service experience. Seven out of 10 (71%) have abandoned an online purchase at checkout in the last 12 months, amounting to an estimated $3.17 billion in revenue foregone.

“Customers now hold much more power,” begins Head of Customer Engagement at LivePerson, Kate Sterling.

“They are most 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.”

Specific reasons for abandoning purchases at checkout include:

  • 42% have been unhappy with delivery details or options.
  • 34% want to do more research before making a purchase.
  • 30% have been unhappy with the price.
  • 20% have not been able to find everything they need.
  • 17% have been unable to have simple questions answered, easily done.

“Consumers are far more comfortable engaging with brands through new channels, than many brands think,” continues Ms Sterling.

“They’re already doing it, and that’s the gap that retailers need to fill in order to gain a competitive advantage.”

55% of Australia’s believe the customer service of most companies, could be improved. In particular, during the pandemic:

  • 35% haven’t been able to find the information they need online.
  • 27% have been on hold for too long, while 19% had their call go answered.
  • 25% haven’t been able to get the answers they need.

Ms Sterling says that while businesses can’t control the pandemic, “…they can improve their approach to customer care”.

“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.”

The full LivePerson Customer Conversation Report can be accessed at LivePersonInsights.com.

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