NEWS |

2022 Customer Satisfaction Index Of Singapore (CSISG) Study Reveals A Decline In Customer Satisfaction

Written by Amit Sharma, Community Development Manager

Takashimaya department store, supermarket chain Sheng Siong as well as fashion labels Uniqlo and Zalora receive the thumbs up from consumers but the 2022 CSISG study shows that customer satisfaction in the retail sector has declined.


The 2022 Customer Satisfaction Index of Singapore (CSISG) survey revealed that Singaporean shoppers are less satisfied with retail stores in 2022. The study suggested that building a seamless omnichannel shopping journey may be the way forward for shops to improve customer satisfaction.


The findings come from an annual study by the Institute of Service Excellence (ISE) at Singapore Management University. The annual study showed Retail sector customers’ latest satisfaction score dropped by 1.5% Year-on-Year to 71.3 points out of 100.


The Retail sector’s CSISG performance was derived from four constituent sub-sectors. Among them, sub-sectors which had the biggest declines in satisfaction were department stores (2.4% to 70.9 points) and fashion apparel (1.7% to 72.1 points). These two sub-sectors also registered significantly lower levels of customer loyalty, with scores falling 4.0% and 3.5%, respectively.



Omnichannel Shopping Experience


According to the CSISG study, analysis of customer responses for stores and brands suggested that product-related attributes, such as product variety and quality, and in-store experiences, such as promotions, pricing, and store design, were key drivers of improving loyalty. The study also revealed major differences in customer satisfaction and loyalty levels between Singaporean shoppers who only did their shopping through a physical store, and those who had an omnichannel experience, i.e. shopped online and in-store.


For instance, Fashion Apparels sub-sector respondents indicating only physical store shopping experiences had a customer loyalty score of 70.2 points. In contrast, customers with an omnichannel experience had a loyalty score of 76.6 points, a remarkable 9.1% higher.


Cashless Payments Score Big Wins


The 2022 CSISG study highlighted yet another interesting observation that offering cashless payments can help in improving customer satisfaction.


According to the study, Retail customers who used cashless payments gave a satisfaction rating of 7.51 points, on a scale of 0 to 10 for Payment Process, significantly better than customers using cash, with an average rating of 7.17 points. The CSISG study, which had been tracking consumers’ payment behaviour over time, saw cashless payments usage surge, from 44.8% in 2018 to 82.9% in 2022.


In comparison, retail customers who used cashless payments gave a satisfaction rating of 7.51 points (on a 1 to 10 scale) for Payment Process, significantly better than customers using cash, with an average rating of 7.17 points.

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