Survey: Few consumers report recent bad retail experience

Waban, Mass. – In a sign that retailer efforts to enhance customer service may be working, few consumers report having a bad experience with a retailer in the past six months. According to a new Temkin Group report, “What Happens After a Good or Bad Experience, 2015,” only 4% of consumers report having a bad experience with a retailer.



Six retailers are at a 1% reporting level for bad customer experience: True Value, Costco, Bed Bath & Beyond, Ace Hardware, Gap, and Staples.



The research examines the impact of bad experiences on consumer spending. Fifty-seven percent of consumers who had a bad experience with a fast-food chain have decreased their spending with those stores.



The research shows that companies can increase their revenues when they respond very effectively after a bad experience. The difference in spending between a consumer who experiences a very poor response by a company and one who experiences a very good response is dramatic; the better response leads to 41% fewer consumers decreasing their spending with the company and 31% more increasing their spending.



The report surveyed 10,000 consumers about their relationships with almost 300 companies across 20 industries, including retail.