Maritz Research Re-Examines Customer Wait Time as Businesses Emerge from the Great Recession

Similar documents
2015 Global State of Multichannel Customer Service Report

G.R.E.A.T. Customer Engagement

Hospitality Resource Guide

Do Happy Employees Lead to Happy Customers?: Revisiting the Employee-Customer Relationship

THE POWER OF CONNECTION. Your Role in Optimizing the Patient Experience

CAR BUYER OF THE FUTURE STUDY ATCBOF14

SHOPPING HABITS REPORT. how the recession has impacted consumer shopping habits

Working in a Customer Service Culture

DRIVERS QUESTIONNAIRE

Did it take lots of time to

The Ultimate Online Reputation Management Guide

Mindset Of The Millionaire Traders

WEBINAR: How to win over an upset customer

Actively Disengaged & Staying

Becoming a Customer Service Superstar Get Primed for the Climb!

More information is available by visiting worksafeforlife.ca and the NS OHS Division.

Employee Performance Enhancement

A summary of the principles from The Speed of Trust Book:

Barometer. Findings in the United States. A research report prepared for:

Mentors: Measuring Success

ImageTrac. Customer Satisfaction and Loyalty Index Average Industry Results. Seek Opportunities.

A Retailer s Guide to Getting Omnichannel Customer Service Right

Holiday shoppers want more help in a hurry here s how to succeed this season

UAF Administrative Services Work Environment Survey. Prepared for: University of Alaska, Fairbanks Administrative Services

Paper: 10, Services Marketing Module: 5, Goods Vs. Service Marketing

Turning Feedback Into Change

Candidate Experience From End-to-End: What s Your Weakest Link?

Retail Innovation: Past, Present and Future

Effective Negotiations

The Impact of Loyalty and Reward Schemes upon Consumer Spending and Shopping Habits

CHANNELADVISOR WHITE PAPER. Everything You Ever Wanted to Know About Feedback on EBay

Customer Service. Copyright 2009, MMM Training Solutions

EXPERIAN FOOTFALL: ACTING ON INSIGHT SERIES

Do s and Don ts of a Great Boss

Trends in Telephone Interpreting

Be the COMPLIMENTS OF INTUIT PAYROLL BEST BOSS. Your Employees Ever Had By Ken Darrow

The Multi-Channel Customer Care Report. Meeting the fresh demands of multi-channel customers

Connecting with the next generation of consumers Centennial Shopper Study 1

The slightest perception of something negative happening can affect an employee s emotional state.

Traditional vs. KPI Behavior Management Pay Plans

4 Crucial Trends for the 2018 Holiday Retail Season

Blowing the Whistle on Workplace Misconduct

How to Bravo! A Guide for Western Union Colleagues

Getting Engaged - What is Employee Engagement and Why Does it Matter?

BRINGING MORE HUMANITY TO RECOGNITION, PERFORMANCE, AND LIFE AT WORK

RAISING THE BAR Exceeding Customer Expectations

Engaging Your Entire Workforce. > 21st Century HCM Is for All Employees Hourly and Salaried Alike

Innovative Marketing Ideas That Work

Customer What?: Quality Customer Service for All Libraries presented by Janis C. Perry

Online Video Interviewing How Leading HR Organizations Find the Right Talent & Streamline Hiring

Taking Convenience to the Next Level Cobranding

Entrenched frugality?

what got them into trouble with regulators in the first place merchants have complained bitterly about paying these fees.

Service Booster Activities

Customer Service and Conflict Resolution

Your call is important to us

Course 4 Customer Relations

BANKS TALK ABOUT THE CHALLENGES OF THE UNIVERSAL BANKER MODEL. August 2016

Law firms & the 7 Ps. Why is there no real legal marketing?

DO YOU WANT A MENTOR?

Solving the IT Skills Gap: The Fast Pass to a Successful Workforce

Mobile Marketing. This means you need to change your strategy for marketing to those people, or risk losing them to your competition.

Utility Management What is Utility Management? What qualifies an individual or a group to manage a utility?

Dialing Up and Down Your Behavior

GUIDE. A Modern Communicator s Guide to Corporate Communications

2017 STATE OF SUPPLIER DIVERSITY REPORT DIVERSE SUPPLIERS

PROCESS CUSTOMER COMPLAINTS CANDIDATE RESOURCE & ASSESSMENT BSBCMM301A

Situation Response Guide

Expectations & Experiences Channels and New Entrants. September 2017

The Hard Truth about Effective Performance Management

Smart energy outlook. February 2017

DIVERSITY AND INCLUSION

2010 Manufacturing Survey Instrument. b) Tenure in post (number of years): c) Tenure in company (number of years): Management Questions

3.5. Learning The Science of Reward Selection. Reward Selection Guidelines

A. OVERVIEW OF THE COMPETENCIES BY CLUSTER

The Vodafone Code of Conduct. Doing what s right

The rules of engagement. Your digital guide to boosting employee engagement.

Enabling, Engaging, & Rewarding Employees A Study of Most Admired Companies

We re going to start our consideration of productivity, profit, competition, monopoly, entrepreneurs, forms of business organizations, stock market,

KNOW YOUR ENERGY RIGHTS. Information and advice to help you solve your energy complaints.

Why Search + Social = Success For Brands The Role Of Search And Social In The Customer Life Cycle

Recruiting Leader Data Toolkit

Orange County Public Schools. Customer Service OCPS HR Showcase October 30, 2015

Customer Satisfaction Surveys That Work

4/29/2014. OPERATIONALIZING ETHICS IN BUSINESS SETTINGS Case Example: Less Sugar Marketing

Successful Restaurant Management. Introduction. Many restaurants fail each year due to managers who are simply unaware of the

7 Quality Organizations and Service. Copyright 2016, 2013, 2011 Pearson Education, Inc. 1

Metrics For The Service Desk

To communicate a consistent message throughout the duration of the response, it is recommended that the organization put forth only one spokesperson.

HR Connect Asia Pacific

5 TIPS. for Live Chat Supervisor and Admin Success. Best Practices for Supervisors and Admins

A SURVEY OF HR PROFESSIONALS FOR HR PROFESSIONALS

What s Driving the Automotive Parts Online Shopper

Quality Customer Solutions

Performance Leader Navigator Individual Feedback Report For: Chris Anderson

INCENTIVE INDUSTRY TRENDS IN COLOMBIA 2005

Eve Billionaire Niche Market Guide

Franchise Introduction

Transcription:

Worth the Wait? Maritz Research Re-Examines Customer Wait Time as Businesses Emerge from the Great Recession by Rick Garlick, Ph.D., Senior Director of Consulting and Strategic Implementation, Maritz Hospitality Research Group 2011 Maritz All rights reserved

In the wake of the Great Recession, many companies had to operate as cost efficiently as possible, and in many cases that meant significant workforce reductions. Service quality was often compromised in this lean environment. Fewer staff most likely meant customer wait times increased. Maritz was interested in understanding how increased wait times impacted customer perceptions and experiences. In particular, Maritz was interested in answering the following questions: Did customer expectations of expected wait time change from our 2008 Wait Time study? Are more customers walking out due to excessive wait times? How do these wait time expectations vary among industries? How does wait time impact consumer behavior? What can companies do to mitigate the impact of wait time? To address these questions, Maritz conducted an online study of 1200 individuals, asking them about the following types of businesses: Mass merchandisers (e.g., Wal-Mart, Target, K-Mart) Home improvement store (e.g., Home Depot, Lowes) United States Post office Quick service restaurant (e.g., McDonalds, Burger King, Taco Bell) Convenience store (e.g., 7-11, Sheetz, BP) Banking institution (e.g., local bank branch, credit union) Mail shipping services store (e.g., UPS, FedEx Store) Drug store (e.g., Walgreens, CVS, Rite Aid) Study sample was evenly divided between males and females, with everyone being asked to rate two categories. Quotas were managed so each category had a minimum of 200 ratings. Everyone was asked what they would consider a reasonable wait time; as well what they considered a short wait time and how long they would wait before leaving. They were also asked about what could be done to compensate for their wait time, as well as what actions they might take if made to wait for an excessive amount of time. Customers Expect the Longest Wait in Drugstores; the Shortest in Convenience Stores Among the eight categories measured in the current survey, customers expect to wait the longest while at a drugstore, anticipating about an eight minute wait. While this is the highest expected wait time, it is still considered reasonable, during a typical visit. Drugstore customers are generally willing to grant an extra two to four minutes wait time during particularly busy times. Generally, these customers become impatient between 15-18 minutes and will leave in frustration after a 21-24 minute wait. Drugstore customers appear to be the most patient of any of the measured categories. Customers of mass merchandisers and the U.S. Post Office also anticipate long waits in excess of seven minutes. Home improvement store shoppers, mail shipping service customers, and quick service restaurant patrons expect to wait around six minutes, while customers of banking institutions expect to wait approximately five minutes. 2011 Maritz All rights reserved 1

The shortest expectations in terms of wait time are from convenience store customers who only expect to wait around three-and-a-half minutes. Interestingly, this expected wait time is below what customers consider a reasonable wait time, which is between 4 ½ - 6 minutes. Convenience store customers become impatient after 8-10 minutes and will leave after 11-13 minutes. The table below shows the complete wait time results for the various categories. Despite the fact that many businesses are operating leaner, wait time expectations have not shifted significantly from the previous year. Expectations remain the same, although they may be harder to meet. Coping with Wait Times For each category, the survey respondents were asked about their level of frustration when they have to wait beyond a reasonable length of time, as well as whether they have ever left due to extreme wait times. The following table indicates the amount of frustration people feel, as well as the percentage who say they ve ever left due to excessive waiting. 2011 Maritz All rights reserved 2

The above table shows an interesting pattern. People experience the most frustration when they have to wait an excessive period of time at a home improvement store, but are also the least likely to leave. Perhaps that is because a home improvement store represents a destination for someone working on a specific home repair project. Since home repairs are often done at a point of urgency, or at least when a person plans a specific window of time, those shopping at a home repair store are more likely to tough it out. Those made to wait too long at a quick service restaurant are the most likely to leave. People typically go to quick service restaurants especially for the speed of service. There are also usually a lot of alternatives if the wait is too long. Furthermore, people are less likely to wait when they are hungry. Another interesting finding is that people appear to be most patient at drugstores. Although the average expected wait time (approximately eight minutes) is longer than any of the other categories, people show the least amount of frustration and are far less likely to leave compared to other waiting situations. The previous table showed they are willing to wait for about 20 minutes before they finally will walk out. It is likely this patience is due to the fact that accuracy in filling prescriptions, as well as taking the time to explain the prescription, is so important to customers. People are likely to understand that filling a prescription is not something to rush through. It is worth noting that both frustration levels and the percentage that left due to long wait times did not change significantly from the 2008 study. This would suggest that despite some staff reductions, people do not seem to be experiencing any greater degree of frustration, nor defecting due to long wait times, than they were two years earlier. Impact on Consumer Behavior The data show that customers respond to excessive wait times by adjusting their behavior in various ways. Most customers will return following a long wait, but they may adjust usage. The study showed that, minimally, one-in-five customers (20%), across all categories said the long wait either had no impact on their decision to return or they returned on the same day when it was less busy. However, a most common reaction was to cut back on use of the location or to use that location only when they had limited options. 2011 Maritz All rights reserved 3

Customers plan for longer waits during busy times. The study shows that customers adjust their expectations when visiting a business during a busy time, allowing increased wait time more than twice as long in some cases. However, customers have their limits and will still experience frustration if the wait is too long. Also, they are relatively inflexible on their wait time expectations, only allowing an additional two to four minutes during busy times. Customers won t share their frustration with the employee or the manager but they will share it with their friends. In every category, customers were twice as likely to tell others about their experience as they were to complain to a manager or other employee. They re even less likely to communicate their frustration to corporate or management offices. A very small percentage will post their experiences online, sharing these experiences with potentially vast numbers of virtual friends. An April 2009 study conducted by Opinion Research Corporation stated that 84% said that browsing reviews influenced their decision on whether to purchase a product or service, so even a small number of negative comments can potentially hurt a business. What Can Businesses Do? The Maritz study examined a number of strategies businesses can take to mitigate the impact of wait time. Not surprisingly, the single-most important factor to mitigate the impact of wait time is having enough staff to handle the business. Customers know when a business is likely to be busy. They expect the management to know this as well and to plan for it accordingly. Additionally, understaffing tends to make employees less engaged with customers, which further undercuts the customer experience. Companies need to provide their employees with the resources to effectively handle customer volume in the right manner to maintain overall customer satisfaction. Employee behavior is also important to mitigate customer frustration. Pleasant and professional attitudes from employees were consistently cited by 40% - 50% of customers across industries as something that would make them wait longer. Just as important were simple behaviors like acknowledging customers upon arrival, greeting them with a smile, making eye contact, and expressing compassion or apologizing for the wait these behaviors let customers know that someone is working to serve them. Having a clear and fair system for waiting is helpful in virtually every category. Status updates are important in categories with longer waits like drugstores. A comfortable waiting area also appealed to bank and drugstore customers. 2011 Maritz All rights reserved 4

Conclusions There is good news and bad news for businesses in the current Maritz Wait Time study. The good news is that customer frustration does not appear to have changed from the previous study conducted in April 2008 despite many businesses being forced to operate leaner. Wait time expectations have not adjusted significantly from two years ago. The bad news, of course, is if you are one of those businesses that have cut staff too deeply, excessive wait time is still a problem that ultimately does lead to customer defections, or at least decreased usage. Certain businesses, such as quick service restaurants, mass merchandisers, and even the U.S. Post Office have seen six-out-of-ten customers leave at some point due to excessive wait time. Even businesses such as home improvement stores that do not lose customers as often due to excessive wait times should worry about how customers vent their frustrations, particularly with so many additional outlets available for sharing customer experiences. This study provides valuable guidelines as to what customers will and will not tolerate. While maintaining appropriate staffing levels is a critical element to managing wait times, the study also underscores the importance of maintaining an engaged workforce. It is often difficult to keep a positive attitude when you are feeling overwhelmed as an employee but recognizing and rewarding employees for great customer service is an important first step. Hiring people who display an outward desire to serve is also critical. Customers will be more forgiving if they are served by employees who are empathetic, knowledgeable, and who demonstrate genuine caring. For more information, please visit Maritz at www.maritz.com or call (877) 4 MARITZ. 2011 Maritz All rights reserved 5