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2 Factors Contributing To High Customer Satisfaction

2 Factors Contributing To High Customer Satisfaction

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Highly Satisfied



Returning customers:

First-time customer:



Highly Likely to Return



Highly Likely to Recommend



67%

59%



72%

57%



70%

67%



_________________________________________________________________



“Across retail segments, first-time customers

are generally less satisfied overall than

returning customers. Loyalty to a brand is

generally built up over time – one experience is

often not enough to create a loyal customer.”

Service Management Group

_________________________________________________________________



Large vs. Small Stores

Based on the size of the store, customers rated their satisfaction with retail

locations as follows:

Overall Satisfaction













Smallest footprint:

Smaller footprint:

Larger footprint:

Largest footprint:



Likely To Return



64%

63%

63%

62%



65%

64%

64%

63%



_________________________________________________________________



“Customers in the smallest footprint stores are

slightly more satisfied. As stores increase in

size, customers are somewhat less satisfied

and less likely to recommend the store to their

friends and family. These findings support the

recent move by retailers to create smaller

footprint locations in order to deliver better

experiences. Most typically, customer issues in

larger stores center on locating products and

finding assistance.”

Service Management Group

_________________________________________________________________



CONSUMER BEHAVIOR 2017-2018



• 199 •



Mall vs. Freestanding Locations

Based on store location, the following percentages of customers said they likely

would return to or recommend a retail location:







Freestanding:

Mall:



Likely To Return



Recommend



75%

75%



73%

71%



_________________________________________________________________



“Customers visiting a mall location of a retailer

are less likely to return and recommend than

customers visiting other store formats. Freestanding locations don’t share brand equity or

customer experience with mall properties or

adjoining retailers.”

Service Management Group

_________________________________________________________________



Newer vs. Older Locations

Based on the age of the store, the following percentages of customers said they

likely would return to or recommend a retail location:

Likely To Return













Store under two years old:

Store 2-to-5 years old:

Store 5-to-10 years old:

Store more than 10 years old:



78%

75%

74%

73%



Recommend



74%

68%

66%

65%



_________________________________________________________________



“Customers visiting stores more than two years

old report lower scores on loyalty metrics.

Infusing capital into stores is a solid investment

toward improving the customer experience. By

doing so, operators can showcase the latest in

store design and product enhancements.”

Service Management Group

_________________________________________________________________



CONSUMER BEHAVIOR 2017-2018



• 200 •



Returning Merchandise

Comparing customers with returns with those not returning merchandise, those

highly satisfied with their most recent shopping experience are as follows:

Overall Satisfaction









No return:

Return:



57%

57%



Friendliness



56%

56%



Speed



47%

44%



_________________________________________________________________



“Customers with returns are equally satisfied with

their visit when compared with those who did not

return an item. Returns are an unglamourous part

of the retail world and stores seem to be doing a

nice job handling returns.”

Service Management Group

_________________________________________________________________



Rural vs. Urban Locations

Based on market population, the following percentages of customers said they

likely would recommend a retail location based on their most recent shopping

experience:

• Population more than 50,000:

63%

• Population 10,000-to-50,000:

66%

• Population less than 10,000:

67%

_________________________________________________________________



“Rural customers are slightly more satisfied

overall with their retail concepts. Rural

shoppers may have a smaller number of options

to shop and, as a result, a smaller frame of

reference when comparing experiences.”

Service Management Group

_________________________________________________________________



32.3 Market Resources

Service Management Group, 1737 McGee Street, Kansas City, MO 64108.

(800) 764-0439. (www.smg.com)

CONSUMER BEHAVIOR 2017-2018



• 201 •



33

ETHICALLY CONSCIOUS CONSUMERISM



33.1 Trust In Business

Since 2001, Edelman (www.edelman.com) has published the Edelman Trust

Barometer. In the 2016 survey, 51% of U.S. adults said they generally trust business

as an institution, a figure that was unchanged from the prior year.

Consumers report engaging in the following behaviors for trusted companies:

• Choose to buy products/services:

68%

• Recommend to a friend/colleague:

59%

• Shared positive opinions online:

41%

• Defend company:

38%

• Paid a premium for products/services:

37%

• Bought shares:

18%

















Consumers engage in the following behaviors for distrusted companies:

Refused to buy products/services:

48%

Criticized companies:

42%

Disagreed with others:

35%

Shared negative opinions:

26%

Paid more than wanted:

20%

Sold shares:

12%



33.2 Corporate Social Responsibility

2015 Millennial CSR Study, by Cone Communications (www.conecomm.com),

reported the following actions and views on corporate social responsibility (CSR):

M illennials





















Would switch brands to one associated with a cause:

Purchase products with a social or environmental benefit:

Pay more for a product from a CSR company:

Volunteer for a cause supported by a company they trust:

Sharing products rather than buying:

Take a pay cut to work for a responsible company:

Use social media to address or engage with companies

around social and environmental issues:

Share positive information about companies and issues

they care about:

CONSUMER BEHAVIOR 2017-2018



• 202 •



All Adults



91%

87%

70%

74%

66%

62%



85%

83%

66%

56%

56%

56%



66%



53%



38%



30%











Share negative information about companies and issues

they care about:

Directly communicate with companies around issues:

Contribute directly to an effort led by a company:



26%

18%

17%



21%

14%

12%



_________________________________________________________________



“From buying products associated with a cause

they care about to using their online networks

to amplify social and environmental messages,

Millennials are universally more engaged in

corporate social responsibility (CSR) efforts.”

Cone Communications, 9/23/15

_________________________________________________________________



33.3 Use Of Products With An Environmental Benefit

The following are findings of Cone Communications’ Green Gap Trend Tracker

survey related to the use of products with an environmental benefit:

• Ninety percent (90%) of adults say they believe it’s their responsibility to properly

use and dispose of products with an environmental benefit, but their actions do not

align with intent. Only 30% say they often use products in a way that achieves the

intended environmental benefit; 42% say they dispose of products in a way that

fulfills the intended environmental benefit.

• Eighty-five percent (85%) of adults say they want companies to educate them on

how to properly use and dispose of products.

• Seventy-eight percent (78%) say they will boycott a product if they discover an

environmental claim to be misleading.

• Seventy-one percent (71%) of consumers say they wish companies would do a

better job helping them understand environmental terms.

• Seventy-one percent (71%) of adults say they regularly read and follow instructions

on how to properly use a product, 66% read proper-disposal instructions, and 41%

say they perform additional research to determine how best to utilize and discard a

product for maximum benefit.

• Although more than 60% of respondents say they understand the environmental

terms companies use in their advertising, the majority continue to erroneously

believe common expressions such as “green” or “environmentally friendly” mean a

product has a positive (40%) or neutral (22%) impact on the environment. Fewer

were able to correctly identify these terms as meaning the product has a lighter

impact than other similar products (22%) or less than it used to (2%). Despite the



CONSUMER BEHAVIOR 2017-2018



• 203 •



attention given to product development and environmental marketing, consumer

misunderstanding of “green” claims has remained flat at around 60% since 2008.



33.4 Ethical Influence On Purchase Decisions

According to The Ethical Consumer U.S., a November 2015 report by Mintel

(www.mintel.com), 23% of adults say their purchase decisions are always or often

influenced by a company’s ethics; an additional 47% say that their decisions are

influenced sometimes.

Actions taken when they believe a company is ethical or unethical are as follows

(percentage of respondents):

Ethical

• Buy products/services:

45%

• Tell others:

34%

• Neither of these:

34%

Unethical

• Stop buying products/services:

• Tell others:

• Neither of these:



56%

35%

26%



_________________________________________________________________



“More than half of adults stop buying products

from unethical companies.”

eMarketer, 12/10/15

_________________________________________________________________



CONSUMER BEHAVIOR 2017-2018



• 204 •



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