Photo credit: Photo by Patrick Tomasso on Unsplash

Why Retail is Failing at Customer Service

  • Author: Speakers Inc
  • San Diego, California, United States
Read the news article

In an era where customer expectations are higher than ever, many Retail Businesses Are Failing at Customer Service and experience. Despite technological advancements and increased competition, the quality of customer interactions has seen a noticeable decline.​

The Failing at Customer Service Quality

Recent studies highlight a troubling trend: customer satisfaction is at a decade low. A report from New Britain revealed that 78% of UK consumers feel frustration when contacting customer services, spending up to 41 minutes weekly on these interactions. Satisfaction has reached a decade low, with 24% of UKICS survey respondents reporting retail is Failing at Customer Service in 2024. ​

This dissatisfaction isn’t limited to the UK. Globally, businesses risk losing $3.8 trillion in sales due to poor customer experiences, a figure that has increased by $119 billion from the previous year. Qualtrics

Factors Contributing to the Decline

  • Over Reliance on Automation: The proliferation of AI chatbots and voice systems has compounded the problem, often failing to address complex complaints effectively. While automation can handle simple queries, it often falls short in providing the empathy and understanding that human interactions offer. ​The Guardian
  • Inadequate Staff Training: Employees often lack the necessary training to handle customer issues effectively. This leads to situations where staff are unable to resolve problems promptly, further frustrating customers. A lack of product knowledge and problem-solving skills can significantly impact the customer experience.​
  • Poor Communication: Customers frequently encounter issues such as delayed responses, lack of updates on order statuses, and unhelpful customer service representatives. These communication breakdowns erode trust and satisfaction.​
  • Inconsistent Experiences Across Channels: Research shows that while 90% of customers expect consistent experiences across channels, disjointed interactions often lead to frustration and disengagement. ​OnRamp | Customer Onboarding Software

Real-World Examples of Customer Service Failures

  • Marks & Spencer (M&S): In April 2025, M&S experienced a cyber incident that disrupted contactless payments and delayed click-and-collect online orders across its stores. The company emphasized that customer and staff actions were not required, indicating no evidence of data breaches. While stores remained open and digital platforms were operational, temporary operational changes were implemented to protect both customers and the business. The Guardian
  • Amazon: A loyal Amazon customer accidentally purchased an $88 item with a shipping cost of $7,455. By the time she caught the error, it was too late to cancel, and the package was delivered. She called Amazon customer service, hoping to resolve the issue. ​Amazon

The Financial Impact of Poor Customer Service

The consequences of inadequate customer experience and Failing at Customer Service are not just reputational but also financial. In the U.S. alone, companies lose a staggering $1.6 trillion due to customers switching to competitors because of unsatisfactory service. ​Invesp

Moreover, 71% of consumers will leave a company after just one bad experience. This statistic underscores the importance of delivering consistent, high-quality customer service to retain customers and maintain revenue streams.​ Convin

Why Retail is Failing at Customer Service

Strategies for Improvement

  1. Invest in Employee Training: Regular training programs can equip staff with the necessary skills to handle customer inquiries effectively and empathetically.​
  2. Enhance Communication Channels: Implementing robust communication systems ensures that customers receive timely updates and resolutions to their issues.​
  3. Balance Automation with Human Interaction: While automation can improve efficiency, it’s crucial to maintain human touch-points for complex or sensitive customer interactions.​
  4. Ensure Consistency Across Channels: Providing a seamless experience across all customer touchpoints—be it in-store, online, or via call centers—builds trust and satisfaction.​

Expert Insights from Customer Service Speakers

For businesses seeking to revamp their customer service strategies, insights from industry experts can be invaluable. Here are some renowned customer service speakers from Speakers Inc.

Shep Hyken: A customer service and experience expert, Hyken helps companies build loyal relationships with their customers and employees.​

Jeanne Bliss: With over 20 years of experience, Bliss guides businesses in creating customer-centric cultures that drive growth.​

Ron Kaufman: An internationally acclaimed educator and motivator for uplifting customer service and building service cultures.​

Lisa Ford: Specializing in customer service, leadership, and change, Ford offers strategies to improve customer satisfaction and loyalty.​

Conclusion

Retail businesses must recognize that exceptional customer service is no longer optional—it’s a critical component of success. By addressing the current shortcomings and Failing at Customer Service by investing in strategies that prioritize the customer experience, retailers can not only retain their existing customer base but also attract new patrons in an increasingly competitive market.​

Speaker Listing

Further articles you may enjoy:

  • (53)

Elizabeth McCormick’s journey to becoming a renowned speaker is rooted in her remarkable career in the military. As a Black Hawk Helicopter Pilot, she faced challenges and triumphs that shaped her into the inspiring leader she is today. Rising through the ranks to become Chief Warrant Officer 2, Elizabeth honed her skills in leadership, resilience, […]

  • June 24, 2024
  • (16)

Ouch!’Death by PowerPoint.’ That’s the commonly used term. Yet Mr Gates’ programme itself is not inherently evil and why you can do better without slides. Jim Nelson, a man who served as a translator between the American and Russian troops in Bosnia, tells a story about the Russians watching with bemused fascination as their unlikely […]

  • December 23, 2022
  • (22)

Speakers Who Spark Growth — Reignite Purpose. Re-frame Possibility. Realign Potential. As the season changes and the world blossoms into spring, it’s the perfect time for organizations to refresh their mindset, refocus their goals, and re-energize their teams. Growth—whether personal, professional, or organizational—starts with the right spark. And that spark often comes from hearing the […]

  • March 30, 2025
  • (26)

Elyse Archer: The Sales Speaker Rewriting the Rules of Success In the ever-evolving landscape of sales, where trust, authenticity, and personal branding have become non-negotiables, event planners are constantly seeking voices that cut through the noise. Enter Elyse Archer—a globally recognized speaker whose magnetic stage presence and actionable strategies are redefining what it means to […]

  • May 6, 2025
  • (9)

Navigating Tomorrow: The Future of Hybrid Event Planning In the ever-evolving landscape of event planning, the emergence of hybrid events has marked a paradigm shift in how we gather, connect, and share experiences. As the world continues to grapple with the implications of a global pandemic, the hybrid model has proven to be more than […]

  • February 27, 2024
  • (72)

A common problem new pilots struggle with is avoiding a PIO or pilot-induced oscillation. So how do we Stop the Cycle as We’re all familiar with the concept of overcorrecting in a car. A deer runs out, you’re driving tired, you’re near the edge of the road, and you yank the wheel the other direction […]

  • December 22, 2022
  • (70)

Versatile Role of Event Emcee, whether they are conferences, seminars, or workshops, are essential for bringing people together, sharing knowledge, and fostering connections. However, the success of an event often hinges on the effectiveness of its host or moderator. These individuals play a crucial role in guiding the audience through the program, maintaining engagement, and […]

  • May 6, 2024
  • (7)

IT’S A NORMAL DAY ON ALIWAL SHOAL. ABOVE TWENTY DEGREES CELSIUS,  BLUE WATER WITH SMALL PARTICLES, A LITTLE BIT OF A CURRENT PUSHING, WE DRIFT ALONG WITH IT, WAITING FOR THE SHARKS… (THIS IS THE STORY OF MY FIRST EVER FREEDIVE WITH SHARKS) It’s a clear blue sky, warm air and a slight breeze- winter […]

  • December 8, 2022

Subscribe to our Newsletter and get connected:

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Newsletter

Subscribe to our newsletter and stay updated.

We use Brevo as our marketing platform. By submitting this form you agree that the personal data you provided will be transferred to Brevo for processing in accordance with Brevo's Privacy Policy.

Our Mission:

We are your partner creating memorable and engaging experiences that go beyond the event itself.

© All rights reserved 2025.  Designed using Voxel

Speakers Inc Logo 2024
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.