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

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

Study Finds Customers Want More Merchandise Appeal and Variety from Most

PR Newswire

ANN ARBOR, Mich., Dec. 27, 2012

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 also falls four percent to 77 and below the Index average. But the
biggest year-over-year decline goes to, 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, 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 and

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:

  oMerchandise 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
  oCustomer 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

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


                       Holiday Holiday
Website                                Year
                       2011    2012

                                       Change             88      88      0             81      85      4                83      84      1           NM      84      NA        NM      83      NA         83      83      0       83      82      -1             NM      82      NA         NM      82      NA               83      81      -2            79      81      2                76      81      5             82      81      -1        NM      80      NA              NM      80      NA             NM      80      NA        NM      80      NA         80      80      0              79      80      1    NM      80      NA            79      80      1    NM      80      NA         NM      80      NA        83      80      -3    81      80      -1          NM      80      NA                 81      79      -2 NM      79      NA          77      79      2    NM      79      NA
Sony Store, Online     74      79      5             76      79      3     NM      79      NA    80      79      -1              NM      78      NA          NM      78      NA             79      78      -1        NM      78      NA   NM      78      NA          78      78      0           83      78      -5     NM      78      NA        75      78      3            NM      78      NA  NM      78      NA    80      78      -2            79      78      -1            78      77      -1                NM      77      NA               80      77      -3         NM      77      NA           NM      77      NA                73      77      4           NM      77      NA              NM      77      NA              78      77      -1       78      77      -1       NM      77      NA          75      77      2             NM      77      NA        NM      77      NA            78      77      -1           NM      77      NA             NM      77      NA    NM      77      NA                 NM      76      NA            NM      76      NA           NM      76      NA                NM      76      NA         NM      76      NA          NM      76      NA               NM      76      NA       NM      76      NA                NM      76      NA        79      76      -3            75      76      1        NM      75      NA 78      75      -3                74      75      1           NM      75      NA              NM      75      NA          72      75      3             NM      75      NA              75      75      0            NM      75      NA     NM      75      NA            NM      75      NA                NM      74      NA       NM      74      NA               NM      74      NA     NM      73      NA        NM      73      NA            NM      73      NA          NM      72      NA               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 for customer experience
solutions and original research.

Chaat Butsunturn,
415-391-7900 x1214
Or Amanda Piasecki,
202-535-7800 x1114


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