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Report: Customer Satisfaction with Online Retail Dips
What caused the decline? Thanks to the recession, consumers appear to be more price-conscious than in previous years, Foresee said. While price typically had a low impact on overall customer satisfaction, the latest research indicates that it’s now a top concern.
“Online shoppers are a savvy group, able to compare price and merchandise at the click of a mouse,” said Larry Freed, president and CEO of ForeSee Results, in a statement. “In an economy where rising unemployment, plummeting home values and tight credit continue to make headlines, consumers are punishing retailers if they feel prices aren't fair or competitive.”
“This doesn’t mean companies should start slashing prices, but it does reflect the current mood of the consumer,” Freed added.
Of the top 100 e-retailers, 16 improved, while more than half declined in satisfaction ratings. Netflix.com, which scored 85 and Amazon.com (News - Alert), which scored 84, took the lead for all e-retailers in customer satisfaction for the fifth year in a row. Scores of 80 or above represent a superior rating.
E-retailers that made the biggest improvements in customer satisfaction include Kohls.com (up 5.6 percent to 76) and Costco.com (up 2.8 percent to 74) since last year. Other companies had a fall in ratings, including Apple (News - Alert).com, which dipped nearly 6 percent to 75, CVS.com, which dropped eight percent to 71 and Willams-Sonoma.com, which fell 6.4 percent to 73.
E-retailers which earned scores of 70 or below show a need for big improvement. Among them include discount company Etronics.com (63) and book retailer efollet.com (62). The two companies had the largest year-over-year declines in customer satisfaction.
“Revenue will tell you a lot about past performance, and by that measure, things don’t look great,” Freed said. “But customer satisfaction will tell us a lot about what’s ahead, and more companies are losing ground. That’s a real canary in a coal mine for future sales online and offline, loyalty, retention, and return visits.”
Not surprising, satisfied shoppers are 71% more likely to buy online than those who are dissatisfied, the report found. What’s more, shoppers are 72% more likely to recommend a Web site. But the online experience can impact where a shopper makes a purchase. Some 44 percent of shoppers are more likely to buy a product offline, according to the report.
The research, which uses the methodology of the University of Michigan's American Customer Satisfaction Index (ACSI), is based on surveys of more than 22,000 visitors to the top 100 e-retail Web sites by sales volume as determined by the 2009 Internet Retailer Top 500 Guide. The free report is available for download here.
Edited by Amy Tierney
