A STUDY has revealed Brits are unhappy with customer service at big retailers – and miss personal touch of smaller shops.
The survey commissioned by Tyl by NatWest found loyalty to small businesses has shifted during the cost-of-living crisis.
Results showed nearly half of shoppers choose to shop wherever they can get the best value, regardless of retailer size.
Research of 1,500 adults who shop at small businesses revealed three quarters of those choose larger retailers because of cost efficiencies.
While 38 per cent have cited limited access to smaller shops locally as the reason for going elsewhere.
However, more than half found themselves lacking customer service and struggled to find an employee to help with a query.
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The study found a warm welcome, complimentary samples and birthday discounts are among the top personal touches a small business can adopt to have an "above and beyond" attitude for their shoppers.
While pricey shipping costs, poor delivery experiences and lengthy timelines to resolve disputes can have a negative impact on how shoppers perceive them.
With the economic climate constantly changing, 44 per cent of shoppers cited the cost-of-living crisis as the main thing impacting their decision to spend less over the next 12 months.
CEO of Tyl by NatWest Mike Elliff said: “The cost-of-living crisis has changed a lot of things, including how and where people shop.
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“This means businesses need to look after their customers better than ever.
“Prioritising customer satisfaction is not just a good business practice, but an essential lifeline for small business growth and survival.
“Business owners have the power to greatly influence consumers even before they have started physically or digitally looking at products and services to purchase.
“Considered and personal touches can go a long way to positively position a business well in advance of the point of sale.
“Customer loyalty, trust, and word-of-mouth recommendations become invaluable assets, and the businesses that go above and beyond to meet their customers' needs will not only weather the storm but emerge stronger on the other side.
“In the face of economic uncertainty, fostering meaningful relationships with customers and the community is the key to resilience and long-term success.”
The study also found 27 per cent of consumers are more likely to shop with organisations which produce sustainable products and put greater emphasis on ethical practices.
Of those who shop locally, 49 per cent do so because they know it’s good for their community, and 48 per cent like to support small business owners.
A third (34 per cent), more often than not, opt to shop with local businesses over larger retailers – whether that be online or in-store.
And while shopping at a small business can be more expensive, 26 per cent of all shoppers have used the current economic climate as an opportunity to buy from smaller businesses – safe in the knowledge they are supporting independent suppliers.
As a result, 44 per cent are taking significant steps to try and manage their finances more effectively.
The research, conducted via OnePoll, also found 30 per cent always look at reviews from other shoppers before making a purchase from a small business in the first instance.
And shoppers would rather shop in-store (28 per cent) over online (21 per cent), with 71 per cent of these citing the opportunity to try before they buy among the reasons why they prefer in-person browsing.
Nearly two-thirds (64 per cent) favour a physical shopping experience, and 59 per cent like to take their goods straight home with them.
UK business expert and entrepreneur Alison Edgar said: “When the economy is changing, it is easy for people to enter the fight, flight or freeze zone and hide from their problems. But actually, now is the time to make an impact.
“As a small business you have the upper hand of being far more agile than a large organisation, and the ability to bounce back and make and embrace change throughout the business. If you are waiting to start or scale a business, there is no ‘right time’, it never comes.”
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Mr Elliff added: “Shopping at small businesses will keep the heart of a community beating.
“It not only supports the livelihood and dreams of locals but also nurtures unique craftsmanship, fosters personal connections, and ensures that every purchase goes the extra mile.”
TIPS FOR SMALL BUSINESSES TO GROW THEIR BUSINESS AND RETAIN LOYAL CUSTOMERS:
Top tip 1: Try not to focus on things outside of your control, such as the state of the economy or how much people are willing to spend. Instead remain clear on your business goals and how you react to situations, running your business the way you want to run it.
Top tip 2: The four biggest fears that hold us back are change, rejection, failure and uncertainty – which running a business is wrapped up in. You need to be agile, prepared and ready to bounce back at any time, because every day will be uncertain, but the sign of a strong business is being able to adapt to the times. Tools such as the Tyl portal can help business owners prepare and adapt so you can plan accordingly and stay in control.
Top tip 3: Going above and beyond for your customers can make you stand out in the long run. This can be as simple as getting to know them better so you can welcome them personally, to little extras like offering a coffee with a haircut. In a world where people like to focus on the negatives, find a way to make them leave your businesses with a smile on their face.
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