Trade: price wars are not a solution to the crisis

Customer ensures long-term customer loyalty

Even in the economic crisis should be the single and retailers - the crisis could fully grasp only with rising unemployment - rely on the quality of the customer, instead of engaging at the expense of service quality to price wars.

Thereupon, the Cologne Service Rating GmbH out in a recent study of more than 8.000 customers judgments to approximately 100 trade and service companies. Thus, consumers who exhibit the Customer of dealers high marks, a significantly stronger binding to these. In addition, customer-oriented trading company are significantly more likely recommended friends or colleagues.

Price arguments, on the other hand, play a comparatively subordinate role in customer loyalty - on the contrary, short-term discount campaigns often disappoint regular customers. Neglecting or reducing the quality of service and advice also leads to an erosion of customer loyalty.

"Discount prices and rebates may increase short-term customer satisfaction, but they are mostly just a flash in the pan. Responding to customer needs and reliable service and advice play a central role in customer loyalty in retail," says Dr. Claus Dethloff, Managing Director of ServiceRating GmbH from Cologne.

"Long-term customer relationships should therefore not be sacrificed for short-term pricing strategies and savings in service. On the contrary: regular customers should be rewarded more."

Customer service pays off

In an industry comparison, the trade performs better than average in terms of service quality from the customer's point of view: 87 percent give "their" dealers a good rating, 52 percent even rate their customer orientation as excellent. The customer service of telecommunications companies and energy suppliers is rated comparatively moderately; health insurance companies are currently getting the top rating.

Individual trading companies such as the home shopping channel HSE24, the drugstore chain "Budni" and the mail order company Otto achieve a particularly high level of customer loyalty thanks to their excellent service quality. In addition, these merchants know how to reward their loyal customers and offer them preferential treatment.

Conclusion: Price and discount battles usually do not have any long-term effects and can even lead to additional uncertainty among consumers during the economic crisis. Trusting, stable customer relationships and reliable service quality are in demand today more than ever.

"Anyone who carelessly gambles away their trump cards in customer service should not be surprised to lose customers to service-oriented competition, especially in uncertain times," warns Dethloff.

The independent ServiceRating GmbH from Cologne examines, communicates and optimizes the service quality of companies. In addition, the rating agency regularly creates comprehensive analyzes on various service topics based on its extensive benchmark database.

Source: Cologne [ ServiceRating GmbH ]