The coronavirus has changed shopping habits and the main challenge for stores will be to ensure an excellent in-person shopping experience.

At Artur.com, a tool for active satisfaction management, we analyzed 200,000 customer feedback responses from 24 Slovenian companies to identify the main negative customer experiences that contribute to churn.

For the past few years, physical stores have been struggling with the trend of growing online shopping and the resulting customer churn from physical stores to online. The isolation brought on by the coronavirus has significantly deepened the problem. Customers spent seven weeks in isolation, where they realized that on one hand, they could shop less, and on the other hand, they could find everything they needed online. After the measures are relaxed, we can expect 'deferred' demand - consumers will find enjoyment in reduced consumption. Customers fear the financial aspect of the current crisis and fear infection. A poorer shopping experience, caused by anti-corona measures (distancing, wearing masks, waiting to enter the store, limited shopping hours, etc.), further increases the attractiveness of online shopping. The main advantage of physical stores is the

personal shopping experience

. This has changed significantly due to the virus. Fewer customers are visiting stores, employees must adapt to a new way of working, and customers will be bothered by things they weren't before.

Customer Churn That Stores Can Influence

Some lost customers and sales are the result of external factors over which stores have less influence. However, some are due to

errors in the customer's shopping process, which stores can influence

. At Artur.com, a customer satisfaction management tool, we analyzed over 200,000 customer feedback responses from visitors to 24 Slovenian companies (Marche, Kompas, Babycenter, sOliver, Pikapolonica, etc.). We wanted to determine the most common reasons for dissatisfaction among store visitors.

Slovenians are not overly critical customers; the average CSAT score for a visit is as high as 4.67 (on a 1-5 scale). However, the excitement scale is different – only a quarter of customers are enthusiastic about the shopping experience. We can conclude that the expectations of Slovenian customers are relatively low. For example, the average store visitor who needs bread will consider leaving the store with bread a successful purchase and give a good rating, regardless of possibly waiting too long at the checkout, the store not having their favorite bread, etc. Customers with an average experience are less loyal; they don't care where they make their next purchase and return to the company's stores less often. Approximately one-tenth of the measured interactions ended with a negative customer experience; 9.1% of customer experiences were negative, with 3.2% being extremely negative. These customers pose a direct threat of churn. Slovenians, according to the analyzed data, are reluctant to give negative ratings. Therefore, these ratings carry even more weight, as they indicate a serious problem with the customer experience.

Reasons Why Store Visitors Leave

The largest portion of negative experiences (38%) is due to poor customer service. Customers are bothered by an apathetic, unfriendly, sometimes hostile attitude, unavailability or ignoring, and in some cases, an overly intrusive approach.

The second reason for losing customers and sales is a lack of professionalism (29% of negative experiences). One of the main advantages of physical stores over online stores is personal interaction; customers expect sales staff to be sufficiently trained to provide proper advice. False promises are another strong generator of negative experiences (11%). For example, a customer is offered a discount they cannot use or it's not applied, they order an item and wait too long for it, or an advertised product is not available in the store. High prices and poor selection are the reason for only 7% of negative experiences. We can conclude that customers distinguish between the shopping experience and satisfaction. A high price might lead a customer not to make a purchase, but it doesn't necessarily affect their satisfaction with the shopping experience in the store itself. During the epidemic, completely new reasons for dissatisfaction have emerged, related to measures to prevent infections. Customers are bothered by waiting outside stores, non-compliance with safety measures, or even extreme adherence to them.

Overcoming Customer Churn with an Excellent Shopping Experience

Online sales will continue to cause customer churn for brick-and-mortar stores, a trend over which these stores will have little influence. However, they can prevent sales losses due to 'their own' mistakes in their customers' shopping experiences. The customer response analysis data indicates that the main challenge for stores in the future will be ensuring an excellent personal shopping experience. Most negative customer experiences currently stem from the attitude or professional competence of sales staff. Customers come to stores to see and try products, relying on store staff for useful advice to help them make purchasing decisions. Companies that systematically monitor the quality of staff-customer interactions will be able to actively address the experiential loops that cause negative shopping experiences and, consequently, customer churn.