advertisement
advertisement

E-Commerce Satisfaction Survey: The Good, The Bad, The Crashey

Written by Evan Schuman
June 1st, 2007

A survey of 20,000 consumers offers good news For Amazon, QVC, Netflix, bad news For Macys, BestBuy, PCMall and SaksFifthAvenue.

The survey, done for years by consulting firm ForeSee Results, takes the top 100 revenue-grosssing Web sites and applied the methodology of the University of Michigan?s American Customer Satisfaction Index (ACSI). ACSI scores have a 100-point scale, with the scores closest to 100 being the best.

The latest results show an unusually wide gap between the best- and worst-performing sites, in terms of customer service. The top five sites were: Netflix (85 score, unchanged from a year ago); QVC (85 score, an increase from last year’s 82); Amazon (83, unchanged); Barnes & Noble (82, an increase from last year’s 78); and DrsFosterSmith (81 ? that site hadn’t been looked at the prior year).

The weakest five sites were: NeimanMarcus (a 69, a sharp drop from the 76 it earned last year. That’s the largest change?up or down?of any site in the survey); Macys (69, unchanged from last year); Etronics (68, was not examined last year); PCConnection (67, was not examined last year); and PCMall (67, was not examined last year).

ForeSee CEO Larry Freed said he was taken aback by the some of the weaker numbers. “The two lowest scorers trail the two highest scorers by more than 20 percent, a remarkable gap given the relatively mature world of online retail,” he said. “It is surprising that any of the top 100 retailers could get away with scores in the 60s and maintain any kind of market dominance for very long.”

Some other notable changes includes LLBean (still very high at 79, but a slight drop from the 80 last year), Newegg (78, but a drop from last year’s 82), Drugstore (a respectable 76, although slightly lower than last year’s 78), Shopping.HP (76, an increase from last year’s 74), Target (76, an increase from last year’s 73), Williams-Sonoma (75, a drop from last year’s 79), Staples (75, a drop from last year’s 77), OfficeDepot (74, a drop from last year’s 75), CircuitCity (74, an increase from last year’s 73), Chadwicks (73, a drop from last year’s 78), Nordstrom’s (73, a drop from last year’s 77), BestBuy (71, a drop from last year’s 73) and 1-800-Flowers (71, a healthy drop from last year’s 76). SaksFifthAvenue came in at a relatively weak 70.

Although price comparisons are a big part of today’s E-Commerce environment, Free said price actually has had?and likely will have?surprisingly little impact on customer satisfaction scores.

“Not surprisingly, satisfaction with price?at 73–was the lowest of any of the drivers of satisfaction that we measured. But improving price would not have a significant impact on satisfaction for 95 percent of the sites we measured,” Free said. “Instead, for the Top 100
retailers as a group, improvements to brand and the site experience would be far
more influential on increasing satisfaction and likelihood to purchase. Although price is important to consumers, our research consistently shows that improving satisfaction with price is not the most strategic method of improving overall satisfaction, loyalty and financial performance.”


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.