Research by truRating, the first mass point-of-payment, anonymous consumer rating system, shows that independent retailers who fail to impress their customers are missing out on vital revenue by as much as 84%.
According to the study, which collated over 22,000 ratings over the last year, people who highly rate their shopping experience, spend far more on their visit than those who are disappointed. In fact, on average these ‘fans’ are likely to spend 84% more than a customer who has had a poor experience. In real terms, they spend £53.98 compared to £29.41 in an average transaction.
The research also uncovered behaviour patterns that linked spending to repeat custom. In particular, customers who spend more during a visit are highly likely to come back to the shop.
Georgina Nelson, CEO of truRating, comments on the findings: “The correlation between exceptional service and spend is clearly strong, and these numbers really highlight the benefit of getting it right every time. It can be tricky to see what’s working and what’s not when you are busy running a business – it could be small things that are affecting customer satisfaction, but retailers might not have the time to step back and see the areas where improvements if made, would have a really positive impact.”
Georgina adds that it’s often simple changes that could make a big difference: “If you can identify the times of the week your customers are happiest and spend more then you can start to see why that might be. Is it because you have a better ratio of staff to customers on those days, is it because the knowledge of those staff is better, or is it because your stock is replenished on those days? Getting access to the right insight can help you uncover the blind spots in your business and then focus your attention on changes that will make a difference for you and your customers.”