Consumers Voting With Their Feet: Nearly One In Six Say Poor Dealings With Staff Put Them Off From Purchasing

A survey for the Marketing & Communication Agency by MORI shows how staff attitudes are affecting consumer behaviour

Britain's much vaunted service economy is in fact plagued by poor staff attitudes that are damaging relationships with consumers, according to new research ('The Brand Ambassador Benchmark') published today, May 27, by the Marketing & Communication Agency (MCA) who commissioned the research conducted by MORI.

The findings also reveal a direct link between staff and consumer loyalty: improving consumers' experiences when dealing with staff can significantly increase consumers' plans to repeat purchase and recommend the company to others.

The survey, the first consumer research of its kind to assess the commercial impact of staff attitudes and behaviour in this way, examines the effect that staff have on consumers' purchase decisions as compared with traditional marketing tools such as advertising, price and promotion. It also identifies what consumers value in their dealings with employees and how this affects their loyalty.

In the last three months alone a staggering one in six consumers (16%) of the 925 surveyed confess that they have been put off from a purchase because of the way that they were treated by staff.

Younger and more affluent consumers appear even more dissatisfied: nearly a quarter of those aged 15-34 (22%) and those with a household income of 16330K and above (23%) were put off from making a purchase because of treatment received from staff.

In describing their dealings with staff, consumers paint a picture of a workforce that falls far short of being the 'brand ambassadors' many companies now say they are.

• Only 20% of consumers say that staff showed appreciation for their interest or purchase
• Just 12% feel staff were enthusiastic about their company's products or services
• Only 7% say staff spoke highly of their company.

"This is a critical message for British industry," says Kevin Thomson, Chairman of MCA. "Just think of the number of companies boasting that 'our people are our brand.' If this is the case, then we have a branding crisis on our hands in Britain."

The report also found that staff had a major determining role in repeat purchases and work of mouth recommendations:

• 41% of consumers say that how staff treat them will determine whether they will buy a company's products or services again.
• 38% say that how staff treat them will determine whether they recommend a company to others.

The top-3 factors that determine whether consumers will make a repeat purchase are quality, price and how staff treat them - and the difference between price and staff dealings is marginal. Interaction with staff comes surprisingly well ahead of advertising, promotions, brand reputation or range of products and services in the list of factors that determine whether consumers will repeat purchase or recommend a company to others.

Further analysis shows a direct correlation between consumers' intention to repeat purchase or recommend and their experience when dealing with staff. For example consumers who feel that staff show a genuine interest in helping are more than twice as likely to purchase a company's products and services again and more than three times as likely to recommend the company to others.

Says Director of MORI's Consumer Research Peter Hutton: "This survey clearly illustrates the direct link between staff attitude and commercial success. What consumers want is a genuine desire to help and a sincere commitment by staff to do their best and do it well. When they don't experience this, they take their business elsewhere, as our survey suggests."

The characteristics that consumers say most influence their decision to buy are staff:

• showing a genuine interest in helping
• having the knowledge and skills to do their job well
• appearing to be committed to giving their best/going the extra mile.

These characteristics or benchmarks are as important to consumers making an everyday purchase as they are when buying a service or major purchase. This offers a new area of competitive advantage for companies in sectors that traditionally haven't liked consumer loyalty with staff interaction.

Companies stand to gain a legitimate competitive advantage from improving staff effectiveness in dealing with consumers, according to Kevin Thomson: "Many of the traditional tools for competitive advantage - quality, price, and speed to market - are no longer effective. They're simply the cost of admission in today's global marketplace. Staff have the potential to build relationships with customers that are virtually impossible for competitors to replicate."

The study, 'The Brand Ambassador Benchmark: a survey of staff attitudes and behaviours and the impact on consumer loyalty', was of a nationally representative quota sample of 925 people in the British general public. Research was conducted in late April. The full report is available, priced 16345, from Leigh Rolls, MCA, Court Garden House, Marlow, Bucks SL7 2AE

The Marketing and Communication Agency Ltd. (MCA) is a leading internal marketing an communication consultancy serving blue-chip clients in the UK, Europe, Canada and US. MORI is the UK's largest independent research agency.

"Companies can cut prices, shorten lead times and introduce as many new products and promotions as they like. But it's their people who will ultimately make the difference, because in today's world relationships are virtually the only thing your competitors can't duplicate."

Phillipa Dennell, Head of Internal Communication, NatWest

"Increasingly marketers have recognised that brand reputation and therefore brand value begin with staff. What's been missing is hard evidence of the impact this can have on consumer behaviour. This research helps fill that void and makes a compelling case for internal marketing as a critical commercial issue."

Mike Detsiny, Director General, The Marketing Society

"Marketers used to worry only about the 4 Ps: Price, Place, Product and Promotion. Now business leaders have proof that a fifth P, People, is just as important to a successful marketing strategy."

Gordon Moultrie, Head of Communication and Marketing Programs, EDS Europe Middle East & Africa

"Business leaders may be talking about wanting their people to 'live their brand' but current practices are leaving employees feeling disenfranchised. The key source of sustainable competitive advantage may well be overlooked and more attention needs to be paid to enhancing staffs role as brand ambassadors."

Leslie de Chernatony, Professor of Brand Marketing, Beneficial Bank.