Main News Desk

Empty shelves are biggest customer turn off

~ research reveals stock shortages are more annoying than poor customer service ~

London, UK - December 12, 2007

Almost a third of all shoppers (31 per cent) rank stock shortages as the biggest retail turn off. This is according to a survey of more than 1,000 shoppers by TNS, on behalf of business intelligence (BI) and performance management solutions provider, Cognos.

Customers ranked unavailability of sizes or out of stock items as the biggest annoyance ahead of poor customer service (27 per cent), suggesting that consumers are more interested in getting what they want when they want it and less concerned with the in-store customer service experience. Women are more likely to shop elsewhere if they can’t get what they want (33 per cent), compared to men (28 per cent).

“Consumers have so much choice available, if they can’t find what they want in a store they’ll shop elsewhere. Retailers need to have an accurate understanding of their stock position throughout the enterprise, coupled with knowledge of what customers are demanding so they can ensure they meet expectations,” said Patricia Vekich Waldron, Global Retail Industry Director at Cognos.

“Surprisingly, having stock unavailable tops customer turn offs ahead of poor customer service. 21st century consumers are more confident in making their own buying decisions and it’s now vital that retailers develop clear strategies to meet their changing expectations and demands. It doesn’t matter if consumers prefer to shop on the high street or online, the same opportunity exists to engage with customers and grow revenue.”

The survey also revealed that over a fifth of shoppers cite either poor online and store layout as their biggest shopping gripe, with 25 per cent of men most likely to leave a store if they can’t find what they want.

“Improving in-stock position, tuning assortment strategies and improving the shopping experience all play a part in winning valuable market share,” added Vekich Waldron. “Retailers need to regularly address and monitor customers’ behaviour so they can update their assortments, stores and channels to attract and satisfy consumers. With almost 50 per cent of all shoppers making up to four impulse purchases a month, having the most interesting products presented to customers as they shop can have a big impact on a retailer’s end-of-year results.”

Executive quote

“Consumers have so much choice available, if they can’t find what they want in a store they’ll shop elsewhere. Retailers need to have an accurate understanding of their stock position throughout the enterprise, coupled with knowledge of what customers are demanding so they can ensure they meet expectations,” said Patricia Vekich Waldron, Global Retail Industry Director at Cognos.

“Surprisingly, having stock unavailable tops customer turn offs ahead of poor customer service. 21st century consumers are more confident in making their own buying decisions and it’s now vital that retailers develop clear strategies to meet their changing expectations and demands. It doesn’t matter if consumers prefer to shop on the high street or online, the same opportunity exists to engage with customers and grow revenue.”

“Improving in-stock position, tuning assortment strategies and improving the shopping experience all play a part in winning valuable market share,” added Vekich Waldron. “Retailers need to regularly address and monitor customers’ behaviour so they can update their assortments, stores and channels to attract and satisfy consumers. With almost 50 per cent of all shoppers making up to four impulse purchases a month, having the most interesting products presented to customers as they shop can have a big impact on a retailer’s end-of-year results.”

About the company

Cognos, the world leader in business intelligence and performance management solutions, provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance.

Cognos brings together technology, analytical applications, best practices, and a broad network of partners to give customers a complete performance system. The Cognos performance system is an open and adaptive solution that leverages an organisation’s ERP, packaged applications, and database investments. It gives customers the ability to answer the questions: How are we doing? Why are we on or off track? What should we do about it? It enables them to understand and monitor current performance while planning future business strategies.

Cognos serves more than 23,000 customers in more than 135 countries, and its top 100 enterprise customers consistently outperform market indexes. Cognos performance management solutions and services are also available from more than 3,000 worldwide partners and resellers. For more information, visit the Cognos Web site at http://www.cognos.com

Copies of previous Cognos press releases and Corporate and product information are available on Cognos Web site at http://www.cognos.com, and at PR Newswires site at http://www.prnewswire.com.

Contact details

Tulna Shah or Steve George at LEWIS
Tel: +44 (0) 20 7802 2626
Fax: +44 (0) 20 7802 2627
cognos@lewispr.com
Internet: http://www.lewispr.com

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