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Retailers are leaving billions of dollars on the table due to poor in-store experiences, according to a new study from Forsta.
The customer service technology provider reviewed 50,000 customer reviews of US and UK retailers, and found that 48% of negative reviews were the result of problems with in-store experience such as “mismanaged checkouts” and “unhelpful service.” The potential losses, per Forsta, add up to $262 billion in revenue each year.
“Long queues and unhelpful customer service are not just inconveniences—they’re eroding customer trust and loyalty,” CEO Kyle Ferguson wrote in a statement. “When customers are frustrated in store, they’re more likely to abandon their purchases and take their business elsewhere.”
- In a separate survey of consumers, Forza found that 74% of US adults will leave a store without buying anything if they have a bad experience.
These are not customers brick and mortar retailers can afford to lose, per Forsta. The report pointed out that US foot traffic dropped 3.2% and in-store sales grew just 0.7% year over year on Black Friday, compared to a 14.6% increase in online sales.
Ferguson stressed that retailers shouldn’t prioritize online shopping at the expense of the in-store experience: “While we’re seeing many retailers focus on improving their online experience, the reality is that conversion ratios are fundamentally higher in store, so retailers must reconsider how they manage their in-store environments, especially during the busiest time in the retail calendar.”
He pointed to the example of Walmart, which recently made AI-powered tools available to employees with the goal of improving customer service.