Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Top Stories > POOR CUSTOMER SERVICE IS ERODING CUSTOMER LOYALTY TO RETAIL BRANDS

POOR CUSTOMER SERVICE IS ERODING CUSTOMER LOYALTY TO RETAIL BRANDS

Published by Gbaf News

Posted on August 27, 2014

3 min read

Last updated: January 22, 2026

Young consumers expressing dissatisfaction with retail customer service - Global Banking & Finance Review — This image highlights the growing discontent among younger consumers regarding poor customer service in retail. It relates to the article discussing how inadequate service erodes loyalty and trust in brands, particularly among those under 35.

Complaints from “Under 35” Age Group are Taken Less Seriously, Resulting in Younger Consumers Shopping Around

New research commissioned by customer service specialists KANA^® Software, A Verint^® Company (NASDAQ: VRNT), suggests poor customer service is eroding consumer loyalty and confidence in retail brands.

Nearly one-third of U.K. consumers (30 percent) have become less loyal to retail brands in the past five years, according to a survey of 2,000 consumers carried out by Vision Critical on behalf of KANA. One-quarter of those customers identified poor service as the main reason for this decreased loyalty.

One major issue for customers was the number of times they had to repeat their complaint to different people within the same company. Almost half of respondents (48 percent) said they had to repeat information during their last communication with a retailer.

All age groups identified repetition as a problem; however, it occurs most frequently for customers under the age of 35—with one in 20 repeating themselves at least five times. Only 30 percent of these younger customers had their issue resolved after one interaction. By contrast, 64 percent of customers over the age of 65 did not have to repeat their complaint at all, feeling satisfied after first contact.

This apparent disparity between levels of service has the potential to drive younger consumers elsewhere. Of those who feel less loyal to retail brands, 37 percent of 18-to-24-year-olds cite service as the key factor versus just 20 percent of those aged 65 and older.

“By forcing consumers to repeat themselves, often several times over a prolonged period, organisations not only deliver inefficient service that costs them money—they seriously affect future consumer loyalty,” says Steven Thurlow, head of worldwide product strategy for KANA. “The need for repetition shows not only poor management of customer data, channels and context, but more fundamentally a lack of ownership of the consumer’s problem and lack of appreciation for their effort levels.”

“The younger generation has higher expectations of digital channels, collaborative and social communications and asks ‘how hard can it be.’ They won’t take seriously an organisation that is unable to do the basics right, and these expectations are rising all the time,” Thurlow continues.

In the past six months, more than one-in-10 adults polled have used at least five different customer channels to contact a retailer. This research supports other studies from KANA showing that U.K. consumers regularly use multiple different channels of contact. Web-based chat, email and face-to-face in store came out as the most popular choices for customer engagement with preference varying between age groups.

“When you have an issue, you want to speak to someone who knows your back history and is able to take action on your behalf. Repetition causes frustration and makes customers feel devalued or, worse, completely ignored. Without a true sense that different channels of communication are linked, people feel that they are wasting their time and, ultimately, this leads to an erosion of loyalty in the retail brand,” Thurlow adds.