New research commissioned by payment tech provider Dojo reveals the impact the cost-of-living crisis has been having on consumer behaviour and expectations when visiting the high street.
While 82% of high street businesses confirm that customers are spending more now compared to in the past, inflation and the increased cost of living is starting to impact consumer attitudes. More than 70% of those surveyed said the current financial climate has changed the way they feel about customer experience. Nearly 20% place more importance on the experience, 12% expect more from it on the whole, and 10% are more likely to be easily disappointed.
The report demonstrates an agreement between both businesses and consumers that experiences are a critical factor when it comes to spending, however it also highlights the gaps between businesses’ priorities and consumers’ expectations.
While 96% of high street businesses are either somewhat (36%) or very (60%) proud of the customer experience they provide, only 18% of consumers said they were always satisfied with their experience and 14% were rarely or never satisfied when visiting high street businesses.
Two-thirds (66%) of consumers said they were willing to pay more on returning to a business if they received great service there. But only 32% of high street businesses thought increasing repeat custom through great experiences is one of the biggest opportunities for increasing profitability.
According to Dojo’s research, almost half (48%) of customers would return to the business if they experienced small and personal touch points. However, only 41% of high street businesses offered various ways to pay, for instance. Missing out on these gestures can lead to financial loss: 26% of consumers would actively tell friends and family not to go to a shop that provided a bad experience, and 21% would leave a bad review. More alarmingly, 21% of people surveyed (equivalent to 11 million Britons) would seek compensation if they had a bad experience.
At the same time, while 28% of consumers said that being given something complimentary was a way to make them feel appreciated, almost a quarter (24%) saw value in payment ease such as being able to pay at their table in a restaurant. Nearly one third (30%) of consumers also said they want to see speed of service and staff friendliness and helpfulness improved.
“This research shows the growing importance of experience on the High Street in the face of increasing living costs,” said Jon Knott, head of customer insight at Dojo. “This also highlights the gap between the experiences that businesses currently offer and what customers expect when spending their increasingly stretched disposable income in the current economic climate. High Street businesses can close this gap by using data and insights to improve efficiencies in the face of current business challenges and provide personalised experiences for their customers. The good news is that this doesn’t have to be an expensive shift. In many instances, offering small things such as enabling customers to pay where and how they prefer, and being able to book tables and order from their phones is something simple yet effective. By tapping into the experience, businesses can stand out.”
The report polled more than 2,000 consumers and businesses across the UK.
