Bad customer service costing £41bn as Gen Z are ‘killing the high street’

Bad in-store experiences cost the UK high street up to £41 billion in lost revenue, according to a leading market researcher.

Forsta found a staggering 80% of UK adults exit a store without buying something if they have a poor experience.

After analysing 50,000 sources, it found 76% of negative online reviews were about bad in-store encounters, and 13% of which were down to negative staff interactions.

Kyle Ferguson, CEO of Forsta, said: “When customers are frustrated in-store, they’re more likely to abandon their purchases and take their business elsewhere.”

Despite the heavy investment into technology – 80 percent of the population purchase goods online according to Statista – Ferguson believes the high street should still be a priority.

He said: “While we’re seeing many retailers focus on improving their online experience, the reality is that conversion ratios are fundamentally higher in-store, so retailers must reconsider how they manage their in-store environments.”

Rhiannon Picton-James at the Independent believes it’s down to Gen Z, revealing her frustrations in a piece titled “Gen Z are terrible at customer service – and it’s killing the high street”.

She said: “If the UK high street was already dying, this current generation of young shop assistants have slapped a ‘DNR’ on it.”

A survey by ResumeTemplates in the US found 1 in 4 companies reported losing customers because of Gen Z employees’ behaviour, noting some lacked the ability to effectively interact with customers.

Among 1,000 hiring managers surveyed, the top concerns for Gen Z in customer-facing roles were an unprofessional tone (41%), poor attention to detail (40%), lack of initiative (39%), and low enthusiasm (38%).

Picton-James added: “This is an online generation, the first to grow up on the internet and their identity is defined by their digital experience – and Covid-19. Some of their customer service, and social skills, are godawful.”

However some disagree, with @madisontayt_ commenting that Gen Z are no different to other generations on X: “It’s high time we all start admitting that, largely, millennials/gen z aren’t any less insufferable and entitled than boomers when it comes to customer service.”

Another user @Arap_Nyasikera said: “This group has unparalleled energy and resilience. But it requires a change in perception about employee culture. First, they aren’t boot-lickers and their loyalty is hard to come by. But they adopt technology and digital tools faster than any other generation.”

Customer service wasn’t the only problem according to Forsta; queue management also contributed to 19% of negative reviews.