Sunday, January 13, 2008

When Holiday Shoppers Lose Patience Retailers Lose Significant Sales According to Motorola Survey

HOLTSVILLE, N.Y., -- American holiday shoppers are on the lookout for the best bargains starting after Thanksgiving, but according to a recent Motorola Inc. (NYSE: MOT) survey*, consumer patience and loyalty wears thin for retailers lacking in high
levels of customer service. According to the survey, nearly 40 percent of holiday shoppers walked out of retail stores because either it was difficult to find associate assistance or the lines were too long. Moreover, of those shoppers that left without purchasing, nearly 90 percent did not return to the same store to make the purchase.

Additionally, the survey found that the average purchase amount lost to these stores was $115 and even higher for the consumer electronics industry at $214.

Only 37 percent of surveyed domestic holiday shoppers were satisfied with the availability of store associate help and only 41 percent were satisfied with the length of time needed to check-out. Surveyed holiday shoppers who were dissatisfied with their shopping experience also reported that they were most likely to walk out of department stores, electronics stores and clothing stores.

"Retail is an extremely competitive industry and when you factor in other socioeconomic trends, the survey results clearly show that customer service affects brand loyalty and dramatically impacts immediate and future sales," said Mark Self, Motorola vice president of retail solutions for the enterprise mobility business. "Retail systems that transform the customer experience are now necessities for retailers as they work to retain their best and most loyal customers, preventing lost traffic and revenue."

Enterprise Mobility for Retailers

Motorola's Enterprise Mobility business connects people to information when and where they need it -- helping to transform businesses to be more productive, efficient and responsive to their customers. Motorola provides an unrivaled platform, portfolio and application partner network, enabling enterprise mobility across the retail enterprise as well as a wide variety of other industries both indoors and outdoors. With this comprehensive infrastructure of wireless networks, mobile devices and management software, retailers can securely deliver a seamless flow of information to workers from the corner office to the retail floor to warehouses with visibility, efficiency and control -- helping them make informed,
business-critical decisions.

Motorola has worked extensively with major retailers worldwide to improve associate productivity, maximize supply chain efficiency and enhance the customer shopping experience. Enterprise mobility solutions that offer self-service shopping assistance, speed checkout time, or put business-critical information in the hands of store associates shows consumers that retailers value their time and loyalty and turns every store visit into a personalized shopping experience.

About the Survey*

Motorola conducted an independent research study to measure U.S. retail shoppers' satisfaction during the 2007 holiday shopping season. Over 1,300 U.S. retail shoppers completed the survey via the e-Rewards global online market research panel, one of the largest global panels for market research, with over 4.2 million consumers and businesses participating. Women over the age of 18 comprised 56 percent of the sample and men over the age of 18 comprised 44 percent of the sample. The survey was designed to provide a measurement for shopper satisfaction with the holiday shopping experience among various retail segments. Key metrics used to gauge market satisfaction include appearance (neatness) of the displays, ease of finding
correct prices, merchandise availability, level of store associate assistance and check-out duration.

About Motorola

Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of seamless mobility, the people of Motorola are committed to helping you connect simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $42.8 billion in 2006. For more
information about our company, our people and our innovations, please visit http://www.motorola.com.

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