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Silent but deadly: Why loud, angry shoppers are better for your bottom line

Retailers should welcome the irate shopper who vents her frustration on the sales floor; the angry customer who walks out in a silent huff is more dangerous than the vocal shopper.

June 3, 2015

Retailers should welcome the irate shopper who vents her frustration on the sales floor, according to a study on dysfunctional retail touchpoints conducted by LoyaltyOne and Verde Group with Professor of Marketing and Psychology Deborah Small, at the Wharton School of the University of Pennsylvania. The study found that the angry customer who walks out in a silent huff is more dangerous to the success of a retailer.

The March 2015 survey revealed that nearly half of the 2,500 U.S. consumers polled reported some type of problem on their last shopping trips. Of those customers, 81 percent decided not to contact the retailer about the issue, and 32 percent of those shoppers said they were unlikely to recommend the retailer to friends and family, putting these shoppers at-risk of decreasing their spend with the retailer.

By comparison, the study found that shoppers who notified retailers of their poor experience and had their problem resolved were 84 percent less likely than silent shoppers to be at risk of decreasing their spend.

"The results are a resounding confirmation that poor customer experiences have a considerable negative impact on shopper spend and attrition which can run into the billions," said Dennis Armbruster, LoyaltyOne Consulting VP and managing partner. "We're ushering in a new era of customer experience measurement vital to retailers looking to make even more informed decisions."

Retailers should also note the importance of identifying specific customer experiences most damaging to customer loyalty as billions of dollars are at risk, according to the study. Below is the ranking per category:

• Mass merchandisers are putting 25 percent of potential revenue at risk;
• Apparel retailers are putting 16 percent of potential revenue at risk;
• Department stores are putting 15 percent of potential revenue at risk;
• Drugstores are putting 12 percent of potential revenue at risk; and
• Grocers are putting 11 percent of potential revenue at risk.

"Our methodology precisely measures the impact of ineffective customer touch points. Insight around the effects of poor customer touch points can help retailers reduce the risk of negative customer experiences, while also enabling them to proactively design experiences that positively influence spend, visit frequency and basket size," said Paula Courtney, president of Verde Group.