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ForeSee Holiday Customer Satisfaction Study: Amazon Sets Standard; JCPenney, Apple, Dell Drop

Study Finds Customers Want More Merchandise Appeal and Variety from Most Retailers

ANN ARBOR, Mich., Dec. 27, 2012 /PRNewswire/ -- Internet-retail giant Amazon remains at the head of the class, according to the annual Holiday E-Retail Satisfaction Index released today by customer experience analytics firm ForeSee. The eighth annual report—based on more than 24,000 customer surveys collected during the prime holiday shopping season between Thanksgiving and Christmas—expands from measuring satisfaction with 40 top retailers to 100 this year. Aggregate customer satisfaction stagnates, scoring 78 on a 100-point scale. Though satisfaction with top retailers remains the same, a few big-name retailers suffered declines. Apple's online retail store slides four percent to 80, slipping from a tie for second place and out of the top five entirely, registering its lowest score in four years. PC competitor Dell.com also falls four percent to 77 and below the Index average. But the biggest year-over-year decline goes to JCPenney.com, with a six percent decline to 78.

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"This year, we're seeing that even some of the largest companies in the country are at risk if they lose sight of customer satisfaction," said Larry Freed, ForeSee president and CEO. "Satisfaction with the customer experience, when measured correctly, is the most important predictor of future success, and while Amazon clearly gets it, Apple stumbles from their usual focus on the customer experience. Dell, and JCPenney seem to be struggling to find their way, which could make them extremely vulnerable to competitors."

Meanwhile, Amazon.com continues to set the standard for customer satisfaction, matching the record high of 88 it set last year in the holiday edition of the Index. Amazon has had the highest scores in the Index for eight years in a row, consistently setting a pace that other retailers don't seem to be able to touch. Their high score is partially because of the appeal and variety of merchandise they offer, a priority area for some other retailers.

"At this point, Amazon has been dominant for so long and has such a history of focusing on the customer, its hard to imagine anyone else coming close," added Freed. "Companies should emulate Amazon's focus on the customer, which is clearly linked to superior revenues over the years."

The range of scores among the top 100 retailers spans from Amazon's high of 88 to a score of 72 shared by Gilt.com and Fingerhut.com.

The report includes individual satisfaction scores for 95 of the 100 top e-retailers (see chart below; sample sizes weren't large enough to report scores for a handful of retailers). In addition to the previous points about individual company performance, other key findings include:

  • Merchandise is a top priority for two-thirds of retailers: Customer experience analytics can provide retailers with a clear direction on prioritizing improvements that will have the greatest return on investment. While many retailers are focused on price, only seven of the top 100 companies registered price as a high priority for improvement. However, 65 of the measured sites should improve merchandise (the appeal, variety, and availability of products) in order to increase overall satisfaction, and by extension, sales, loyalty and customer recommendations. 
  • Customer satisfaction matters: Compared to shoppers who report being dissatisfied with a website, highly satisfied shoppers say they are 67% more likely to consider the company the next time they purchase a similar product. Satisfied shoppers also report being far more likely to return to the site, recommend it and stay loyal to the brand. Furthermore, analysis of top e-retailers in the United States has shown that, on average, a one-point change in website satisfaction was found to predict a 14% change in the log of revenues generated on the web. 

The full table of scores is below. The full report can be downloaded for free at www.ForeSee.com.

Shopper Satisfaction with Top 100 Online Retailers in the U.S., Holiday 2012

Website

Holiday

2011

Holiday

2012

Year-

Over-

Year

Point

Change

Amazon.com

88

88

0

LLBean.com

81

85

4

QVC.com

83

84

1

Vitacost.com

NM

84

NA

Esteelauder.com

NM

83

NA

Vistaprint.com

83

83

0

1800Contacts.com

83

82

-1

Keurig.com

NM

82

NA

Scholastic.com

NM

82

NA

Avon.com

83

81

-2

Cabelas.com

79

81

2

HSN.com

76

81

5

Newegg.com

82

81

-1

1800Flowers.com

NM

80

NA

Blair.com

NM

80

NA

Chicos.com

NM

80

NA

Freshdirect.com

NM

80

NA

HPShopping.com

80

80

0

Kohls.com

79

80

1

MusiciansFriend.com

NM

80

NA

Netflix.com

79

80

1

OrientalTrading.com

NM

80

NA

Shutterfly.com

NM

80

NA

Store.Apple.com

83

80

-3

VictoriasSecret.com

81

80

-1

Walgreens.com

NM

80

NA

BN.com

81

79

-2

EdibleArrangements.com

NM

79

NA

Nordstrom.com

77

79

2

Saksfifthavenue.com

NM

79

NA

Sony Store, Online

74

79

5

Target.com

76

79

3

WeightWatchers.com

NM

79

NA

Williams-Sonoma.com

80

79

-1

Amway.com

NM

78

NA

AnnTaylor.com

NM

78

NA

Costco.com

79

78

-1

DisneyStore.com

NM

78

NA

FootballFanatics.com

NM

78

NA

HomeDepot.com

78

78

0

JCPenney.com

83

78

-5

MicrosoftStore.com

NM

78

NA

OfficeDepot.com

75

78

3

ShopNBC.com

NM

78

NA

SierraTradingPost.com

NM

78

NA

SportsmansGuide.com

80

78

-2

Walmart.com

79

78

-1

BestBuy.com

78

77

-1

Cdw.com

NM

77

NA

Dell.com

80

77

-3

EddieBauer.com

NM

77

NA

Gamestop.com

NM

77

NA

Gap.com

73

77

4

Grainger.com

NM

77

NA

JCrew.com

NM

77

NA

Macys.com

78

77

-1

NeimanMarcus.com

78

77

-1

Net-a-porter.com

NM

77

NA

OfficeMax.com

75

77

2

Peapod.com

NM

77

NA

RalphLauren.com

NM

77

NA

Staples.com

78

77

-1

Symantec.com

NM

77

NA

Thebay.com

NM

77

NA

UrbanOutfitters.com

NM

77

NA

AE.com

NM

76

NA

BassPro.com

NM

76

NA

BlueNile.com

NM

76

NA

CVS.com

NM

76

NA

FootLocker.com

NM

76

NA

Hayneedle.com

NM

76

NA

Nike.com

NM

76

NA

NorthernTool.com

NM

76

NA

REI.com

NM

76

NA

TigerDirect.com

79

76

-3

Toysrus.com

75

76

1

Abercrombie.com

NM

75

NA

AutoPartsWarehouse.com

78

75

-3

Buy.com

74

75

1

Efollett.com

NM

75

NA

Lowes.com

NM

75

NA

Overstock.com

72

75

3

PCMall.com

NM

75

NA

Sears.com

75

75

0

ShoeBuy.com

NM

75

NA

Shopmyexchange.com

NM

75

NA

Wayfair.com

NM

75

NA

FTD.com

NM

74

NA

PCConnection.com

NM

74

NA

Shop.com

NM

74

NA

Crateandbarrel.com

NM

73

NA

Nutrisystem.com

NM

73

NA

RueLaLa.com

NM

73

NA

Fingerhut.com

NM

72

NA

Gilt.com

NM

72

NA

About the ForeSee Results E-Retail Satisfaction Index (U.S. Holiday Edition)
The eighth annual holiday online satisfaction report is based on more than 24,000 responses from visitors to the top 100 e-retail websites according to sales revenue as reported by Internet Retailer's Top 500 Guide. Survey responses were collected via research panel. ForeSee Results uses technology based on a methodology that has been shown to have a direct link with stock prices and other measures of financial performance.

About ForeSee
As a pioneer in customer experience analytics, ForeSee continuously measures satisfaction across customer touch points and delivers critical insights on where to prioritize improvements for maximum impact. Because ForeSee's superior technology and proven methodology connect the customer experience to the bottom line, executives and managers are able to drive future success by confidently optimizing the efforts that will achieve business and brand objectives. The result is better business for companies and a better experience for consumers. Visit www.foresee.com for customer experience solutions and original research.

FOR MORE INFORMATION
Chaat Butsunturn, cbutsunturn@kearnswest.com 
415-391-7900 x1214
Or Amanda Piasecki, apiasecki@kearnswest.com 
202-535-7800 x1114

SOURCE ForeSee

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