BAD SERVICE DRIVES SHOPPERS FROM STORESSOMETIMES FOR GOOD

Consumers Tell Friends To Stay Away Too, Says Survey

RIDGEWOOD, NJ -- More than 20 percent of customers walk out without making a purchase and an equal number stop shopping at a store altogether where they experience bad customer service, according to a national telephone survey of more than 1,000 consumers sponsored by MOHR Learning, the retail training unit of Provant, Inc. Moreover, 26 percent tell their friends about the experience and urge them not to shop at the store.

"While the most common response to poor service is to complain to a store manager," said MOHR Learning CEO Michael Patrick, "many people seem to protest with their pocketbook instead. Retailers need to recognize the less visible impact of bad service -- the quiet erosion of their customer base."

When you experience bad customer service when shopping, which of
the following describes your typical reaction?*

*respondents could choose all that apply

"Some retailers assume customers dont care about service and that its something they can take for granted," said Patrick. "But our research suggests people really get upseteven if theyre reluctant to say anything. In fact, some customers who would never complain to a store manager will do so to their friends. And word-of-mouth can be as powerful in retailing as it is in the motion picture business."

Patrick said retailers have to assume that every customer who complains represents two others who experienced the same frustration, but didnt voice it. "Its not enough for store managers simply to address individual customer complaints. The better solution is to provide training and supervision to employees so that such incidents are not repeated."

Among the surveys other findings:

• The more affluent a customer, the more likely he/she is to walk out without making a purchase (26% of those making $50,000+ vs. 16% of those making $15,000-24,999).

• Men are more likely than women (26% vs. 19%) to walk out without making a purchase, while women (44% vs. 34%) are more likely to complain to a manager.

• Customers 45-54 are least likely to ignore bad customer service, while those over 55 are most likely (9% vs. 18%).

• Customers in the Northeast (34%) are more likely than those in any other region to walk out without making a purchase, while those in the South (16%) are least likely.

• The less educated a customer, the more likely the person is to ignore poor service and to continue shopping at the store.

• Customers in non-metropolitan areas were more likely than their urban counterparts (21% vs. 14%) to ignore poor service.

The EXCEL^sm Omnibus Survey of 1,024 consumers was conducted by Media, PA-based

International Communications Research.

Headquartered in Ridgewood, New Jersey, MOHR Learning is the largest U.S. retail training provider. Among MOHRs clients are A&P, Barnes & Noble, Belk, Blockbuster, CDW, Clinique, Coach, Crate & Barrel, Dayton Hudson, Donna Karan, Duty Free, Eckerd, Federated Department Stores, Gap, JC Penney, Kmart, Kroger, The Limited, Nordstrom, Reebok, REI, Safeway, Sears, 7-Eleven, Value City, Victoria's Secret and Wal-Mart. 

MOHR is a unit of Boston-based Provant, Inc., a leading provider of performance improvement training products and services.