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Good Service Creates Loyal Customers: Gallup

Low prices are not enough to create loyal customers. Retailers with brick-and-mortar stores must also provide good service, according to a new report from Gallup. Price is important, but in a new report, The State of the American Consumer, Gallup advises that it can’t be the only thing that differentiates a store from the competition. Customers who have emotional attachment to that retailer care less about price and tend to spend more, Gallup’s research shows. To create this engagement, a store must have salespeople who are really helpful and deliver good service. Think Nordstrom, Apple or Starbucks. Based on its latest survey, Gallup says the threat of showrooming — where someone goes to the store to “test drive” a product knowing full-well they will buy it online for less from a competitor’s website — has been greatly exaggerated.

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-Herb Weisbaum, CNBC.com