Study: Canadian shoppers want low prices over customer service

An item's price tag is more important to Canadian shoppers than customer service, according to a study of 3,500 Canadian shoppers by the COLLOQUY Canadian Retail Loyalty Index.

Just two years ago, customer service was ranked the most important factor for shoppers when it came to store loyalty, with pricing coming in at a distant second place. Today, however, a competitive price is the way for shop owners to get repeat customers. In a press release, Kelly Hlavinka, author of COLLOQUY Canadian Retail Loyalty Index (link opens in PDF) and COLLOQUY Partner, said, "While the recession played a major role in driving consumers to low-price stores, even as the economy recovers the need to deliver a good customer experience and value is the new normal for all retailers. But value doesn't just mean low prices. Stores that can identify the shoppers that contribute most to their bottom line, and how to satisfy them, stand the best chance of survival and success." There is one exception to the rule: Young adults still view customer service as their top reason for store loyalty. In Ontario, discounters were the winners; when it comes to grocery shopping, Zehrs ranked highest for customer loyalty and No Frills lead the pack for frequent trips. Also in Ontario: Zellers was the loyalty winner, narrowly beating Walmart Supercenter, Shoppers Drug Mart/Pharmaprix and Rexall. However, Shopper's Drug Mart was where most people shopped more often.