Technology factors helped boost customer satisfaction in Singapore over the first quarter this year, according to a survey by the Institute Service Excellence (ISE) at Singapore Management University (SMU).
Its 2017 Q1 Customer Satisfaction Index of Singapore (CSISG) shows that customers prefer self-checkout counters at supermarkets, and are happier with department stores when taking an omni-channel approach to shopping.
For the survey, the institute interviewed 6070 locals and 830 tourists face-to-face between January and April. The retail sector scored 72.1 points on a 0 to 100 scale for the quarter, a similar performance to the same period last year.
Of the four retail sub-sectors, fashion apparel scored 72.5 points (up 0.63 points year-on-year), supermarkets scored 72.4 points (up 0.9 points) and e-commerce 71.4 points (up 0.35 points) – changes that are not statistically significant, says ISE.
Meanwhile, the department stores sub-sector scored 71.2 points, a marked 0.95-point improvement over the previous year.
“The notable improvement in customer satisfaction with department stores stemmed largely from locals,” says ISE executive director Neeta Lachmandas, citing such possible reasons as store revamps, changed product offerings and increased promotional activities.
Increased shopping options could enhance the customer experience and positively impact customer satisfaction and loyalty, says ISE head of research and consulting Chen Yongchang.
Cross-industry benchmarking also revealed lower satisfaction and loyalty rates for department store customers who shopped only at the physical stores when compared to the e-commerce sub-sector’s customers. In contrast, customers who had experienced the stores’ digital platforms had similar levels of satisfaction and higher levels of loyalty than just e-commerce customers.
“This would suggest that traditional brick-and-mortar stores could be better served and complemented by developing a robust omni-channel presence … it can potentially give them a competitive edge over e-commerce retailers,” says Chen.
For supermarkets, customers who frequently use the self-checkout counters expressed greater satisfaction levels compared to those who use the cashiers.
The ISE was jointly set up by Singapore Management University and the Singapore Workforce Development Agency in 2007 to elevate service levels in Singapore.
