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Netflix, QVC.com, Amazon Lead E-Retailers in Customer Satisfaction

By Jos
Jun 1, 2007
  1. ANN ARBOR, Mich. (June 1, 2007) – Netflix, QVC.com and Amazon do the best job satisfying their site visitors, according to the ForeSee Results Top 100 Online Retail Satisfaction Index released today. As a category, retailers selling books, CDs, and DVDs tend to score best overall, while the categories of apparel & accessory retailers and computer/electronics retailers generally perform below average.

    The report produced by ForeSee Results is based on over 20,000 surveys of consumers who visited the top 100 revenue-grossing retail websites, as identified in the Internet Retailer Top 500 Guide. Using the methodology of the University of Michigan’s American Customer Satisfaction Index (ACSI), the study measured how well the top retail websites delivered the kind of site experience customers want. The websites included in the index spanned a wide variety of categories: Apparel & Accessories, Books/CDs/DVDs, Computers/Electronics, Flowers/Gifts, Food/Drug, Hardware/Home Improvement, Health/Beauty, Jewelry, Mass Merchants, Office Supplies, Specialty Retailers, Sporting Goods and Toys/Hobbies.

    Among the findings of the third annual spring edition of the ForeSee Results Top 100 Online Retail Satisfaction Index:

    • Leaders: Netflix.com and QVC.com lead the way with a high satisfaction score of 85, considered superior on the ACSI’s 100-point scale. Other customer favorites include Amazon.com (83), Barnes & Noble’s website, BN.com (82), DrsFosterSmith.com (81), LLBean.com (79) and Apple.com (79).

    • Laggards: The lowest scorers with the most opportunity for improvement include PCMall.com and PCConnection.com, each with a score of 67. Home Depot.com (69), Lowes.com (70), and BestBuy.com (71) are also low on the list.

    • Books/CDs/DVDs: This is the highest-scoring category in aggregate. Internet pure-play Netflix.com leads the overall Index and the category (85), while Barnes & Noble’s site BN.com (82) continues to be a standout among brick and mortar retailers. Amazon (83) has expanded far beyond books and is categorized with mass merchants, but is still clearly a large player in this space as well.

    • High-end retailers: Nordstrom.com (73) leads high end retailers. NeimanMarcus.com (69) suffers the biggest drop in the Index, dropping 9% from a year ago. Macys.com also scored 69, and new to the Top 100 is SaksFifthAvenue.com, which scored 70.

    • Department Stores: JCPenney.com and Target.com (both 76) lead department store retailers. Walmart.com isn’t far behind (75) while Costco.com and Sears.com trail with a score of 72.

    • Apparel & Accessory Standouts: LLBean.com (79), shoe-retailer Zappos.com (79), and VictoriasSecret.com (77) lead the apparel and accessories category. Abercrombie.com (70), SaksFifthAvenue.com, and NeimanMarcus.com brings up the rear. Apparel and Accessories retailers are tied with computer and electronics retailers for categories with the lowest satisfaction scores.

    • Computer & Electronics Standouts : Apple.com (79), TigerDirect.com (79), Dell.com (78), and Newegg.com (78) led the computer and electronics category, while Etronics.com (68), PCConnection.com (67) and PCMall.com (67) trailed.

    • Price: Price is not the hot-button issue that most e-retailers expect. Research shows that for the vast majority of retail websites, investing in site experience improvements or brand will have a bigger positive impact on the bottom line than trying to drive demand by dropping the price.

    • The importance of satisfaction: satisfaction drives loyalty, positive word of mouth, ROI, and future financial performance. The Top 100 study also found a tight link between customer satisfaction and customers’ propensity to choose a particular retailer.

    “It’s impressive that some retailers’ satisfaction scores for browsers are so high,” said Larry Freed, President and CEO of ForeSee Results. “We expect purchaser satisfaction of the leaders to be high, but high browser satisfaction scores represent the strong positive contribution of the online shopping experience that has been difficult to quantify though other metrics. It’s also notable that while some of the biggest online retailers achieved high satisfaction scores, size doesn’t necessarily equate with high satisfaction. There are a number of smaller niche retailers that are rated in the top tier by online shoppers.”

    “Lower scoring retailers shouldn’t be discouraged, since they have the greatest opportunity to improve the website shopping experience and they are still ranked among the top 100 retailers in terms of online sales,” said Freed. “By increasing online customer satisfaction, these retailers will see a profound impact on financial performance.”
  2. halo71

    halo71 TS Rookie Posts: 1,090

    That is VERY surprising that NetFlix is on that list! I read all kinds or complaints about them. Needless to say this was AFTER I had my nightmare with them! Never again.....
  3. NetCablesPlus

    NetCablesPlus TS Maniac Posts: 228

    It will be interesting to see if Amazon stays up there in the ratings. I am an Amazon Merchant and just a couple of weeks ago, they changed their order processing system and have made it much harder for us to process orders quickly and efficiently. I think that it is going to result in delayed shipments and less satisfaction from the buyers, so stay tuned...
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