Do retail salespeople create problem customers?

 Could retail salespeople be creating problem customers who leave retailers and do not return?

The Retail Customer Dissatisfaction Study, conducted by The Verde Group and the Baker Retail Initiative at the University of Pennsylvania’s Wharton School, show that sales staff are the single biggest detriment to the shopping experience, resulting in more lost business and negative word of mouth than any other shopping problem. The study also estimated that the defections caused by a lack of sales help or a poor associate experience ultimately results in a 6% loss of business for retailers.

Retail Customer Dissatisfaction Study, conducted for the second year in a row by the Verde Group, a leading customer dissatisfaction consulting firm, and the Baker Retail Initiative at the University of Pennsylvania's Wharton School.  Researchers compiled data from 1,000 American consumers surveyed in March, 2007. 

Our goal was to find out what annoys American consumers most when they shop and the answer came back loud and clear:  SALESPEOPLE, especially those who don’t have the product knowledge they should have,” says Paula Courtney, President, the Verde Group.  “A host of issues – including the disappearance of salespeople when they’re needed, long check out lines, over-solicitous and insincere salespeople, and being ignored by sales staff – is alienating shoppers and losing big bucks for American retailers.”

"Equally damaging to business is that 25 percent of all consumers who report a problem when they shop are ignored by sales staff, receiving not so much as a smile, greeting or even eye contact.  This turns three percent of customers away from the retailer permanently and is the number one problem customers are likely to share with others."

http://www.verdegroup.ca/default.asp?action=article&ID=46

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