Research by Retail Eyes revealed that fewer than one in five people's purchasing decisions are ultimately influenced by getting the lowest possible price available through discounts and sales.

The agency discovered that 83 per cent of shoppers are looking to add value for their money when buying products through greater levels of customer service.

Tim Ogle, chief executive of Retail Eyes, said that aggressive promotions and discounting is appealing to many retailers, especially after the VAT rise in early January, but this may not be the best course of action.

Mr Ogle also said that concentrating on providing low prices over customer service will only result in short-term benefits and could damage a company's reputation in the long haul.

He said: "Obviously with their margins being squeezed by rising costs, retailers need to find cost effective ways to add value - one of which is through exceptional customer service."

Mr Ogle has called on organisations to be proactive when dealing with customers and create an experience they will remember and want to revisit rather than just reacting to complaints and queries.

Systems thinking analyses an organisation from the customers' perspective and investigates what happens at each point of transaction, looks at how their demand is met and how the organisation responds to potential problems.

Performance improvement consulting experts can help an organisation understand how to analyse their own business from a customers' point of view and this will help them improve their design processes and strategies.

Mr Ogle said organisations should concentrate on training their consumer-facing employees as these workers can really make a retailer stand out from the crowd by demonstrating dedication to each customer's overall experience.

He said: "Get the overall customer experience right and retailers can expect to see the results positively impact at the tills.

"Get it wrong however, and shop staff who see their job 'as just a job' can have a negative impact - destroying a retailer's reputation just by simply ignoring customers."

Mr Ogle pointed out that simple methods such as greeting customers on their entrance and dealing with aggressive behaviour in a calm manner would encourage shoppers to stay longer and spend more.

Ultimately, it was the responsibility of an organisation to gather feedback in order to combat poor levels of consumer service and rebuild a happy relationship with customers, according to Mr Ogle.