Retailers lose $3.17bn in sales as customers ‘walk away’


Better customer service key to retail’s COVID-19 rebound

With Christmas fast approaching, new research has found that poor customer service has been letting retailers down, creating a new battleground for competitive advantage. Thirty-eight per cent of Australians were not satisfied with their most recent retail customer service experience and 7 out of ten (71%) have abandoned an online purchase at checkout in the past 12 months amounting to an estimated $3.17 billion in revenue foregone.

The latest LivePerson Customer Conversation Report is based on a survey of 3,012 consumers across Australia (1,004), Japan (1,004), Singapore (502) and New Zealand (502) who were asked about their customer service experiences in 2020, what has changed for them, and what they would like to see companies do differently or better.

LivePerson found that 63% of Aussies missed retail shopping a lot or a little during COVID-19 and 86% feel that physical storefronts are still important when making retail purchases, but only 48% believe that we’ll be ‘shopping as normal’ by this time next year. In the meantime, 72% say concerns about the virus make them worried about shopping instore and 82% now rate ‘contactless shopping’ as important.

When asked specifically about their online customer service experiences and why they abandoned purchases at checkout, the results are sobering for retailers:

  • 42% have been unhappy with delivery details or options
  • 34% want to do more research before making a purchase
  • 30% have been unhappy with the price
  • 20% have not been able to find everything they need
  • 17% have been unable to have simple questions answered easily online.
/Public Release.