UK's Best and Worst Online Retailers Named in ForeSee Christmas 2013 Customer Experience Index

UK's Best and Worst Online Retailers Named in ForeSee Christmas 2013 Customer
                               Experience Index

  PR Newswire

  LONDON, Dec. 18, 2013

-- With Photo

…Aggregate Customer Satisfaction Drops; More Retailers Fall into the Category
of "Underperforming"…

…Amazon Continues to Dominate Online Retail, but Scores are Down on 2012
Figures…

LONDON, Dec. 18, 2013 /PRNewswire/ -- ForeSee , the global leader in customer
experience analytics, has today announced the findings of its annual ForeSee
Experience Index (FXI): 2013 UK Retail Edition which measures customer
experience across the UK's top 40 online retailers.

(Photo: http://photos.prnewswire.com/prnh/20131218/DE34667-INFO )(Logo:
http://photos.prnewswire.com/prnh/20110819/DE54780LOGO )

The report indicates a slight, but meaningful, decrease in aggregate
satisfaction from Christmas 2012 to Christmas 2013 (from 74 to 73 on the
study's 100-point scale) – the first time since the survey was launched in
2007 that there has been a fall in online customer satisfaction after five
years of stability and growth. Whilst a one-point drop is considered a small
decrease, the direct effect that satisfaction has on revenues and
profitability means that even this slight reversal of fortune has the
potential for significant negative impact. Indeed, research conducted across
the top 100 US retailers shows that, for an individual company, a one-point
increase in satisfaction is likely to lead to a 10.6 percent increase in
revenues generated on the web, suggesting a potentially major loss of value
for UK online retailers should this decline persist.

This is the seventh year that ForeSee has conducted an analysis of customers'
shopping experience with the UK's top 40 online retailers. The revealing data
is the result of almost 10,000 customer surveys collected each year during the
prime Christmas shopping period (in November and December) and affords
year-on-year comparisons of not only aggregate e-retail satisfaction, but also
of satisfaction with individual retailers. The Index measures four high-level
factors that affect overall customer satisfaction: site functionality, price,
merchandise and content.

Key findings:

  *The Leaders : With a score of 80 or above generally considered the
    threshold of excellence, Amazon continues to dominate the top of the
    leaderboard. However, neither its US or UK site has shown any improvement
    in score (amazon.com maintained its 2012 score of 84) and amazon.co.uk
    actually fell by two points on last year's score (of 86) to equal its US
    counterpart's score. Dropping out of the group of retailers that surpass
    the excellent threshold of 80, John Lewis fell by a point to 79, but
    managed to hold on to its third place position in the Index. Apple (with
    78 points), Marks & Spencer (with 77) and ASDA Direct and Ikea (both with
    76) also appear at the top of the Index.
  *The Fallers: Ryanair continues to bottom out the Index and by a
    significant margin – it rests a full eight points behind the three
    next-worst performers. With a score of 60 (down one point from 2012) the
    airline is clearly continuing to frustrate its customers and this will
    continue to impact its bottom line into 2014.
  *The Most Improved: This year's largest increases went to Netflix (up three
    points to 71) and Ikea (also up three points - to a score of 76). Given
    that, on average, a one-point satisfaction increase has been shown to lead
    to a 10.6 percent increase in revenues generated on the web, these
    increases could translate to significant business value for these
    companies. Retailers are leaving money on the table by not improving the
    customer experience.
  *Mind the 'Satisfaction' Gap: Currently, there is a notable 24-point gap
    between the highest-scoring e-retailer (Amazon UK 84) and the lowest
    (Ryanair, 60), a broad range for a seemingly sophisticated industry.
    Moreover, with average satisfaction for the top 40 e-retailers slipping
    from 74 to 73 and just 21 of the measured companies surpassing that
    average, it appears that a lot of work needs doing in 2014 to satisfy
    customers more effectively.
  *Customer Satisfaction Matters . Highly satisfied online shoppers in the UK
    are 61 percent more likely to commit to the brand, 61 percent more likely
    to purchase next time, 70 percent more likely to recommend and 52 percent
    more likely to return to the website than less satisfied site visitors.
  *Comparison to Direct Competitors: All retailers in the Index are
    classified according to product category, which allows individual
    companies to check their own performance against those of companies
    selling the same products or services.

       *Mass Merchants – For the 13 online retailers in this classification,
         the aggregate score was 76 this year — up one point on 2012's score.
         In general, any mass merchant scoring under 77 is in danger of losing
         business to competitors scoring 77 or higher, though those with
         average scores should also be concerned. Top-scoring mass merchants
         include Amazon (84) (in both .co.uk and .com forms), John Lewis
         (79) and Marks & Spencer (77). Very.co.uk was bottom out of this
         group with a score of 72.
       *Travel and Tourism – The 11 websites included in this category
         recorded an average score of 71 – the same as in 2012. British
         Airways, Thomson and Travel Republic topped the list with scores of
         74 each, whilst perennial low scorer Ryanair (with 60) came in last.
         Even the top scorers in this category underperform the average for
         mass merchants, which shows how much satisfaction can vary from
         category to category.
       *All other categories – of the 16 online retailers which fall into
         this group, Apple comes out on top with 78 points – two points clear
         of second-placed Ikea. At the other end of the scale, Ticketmaster
         and B&Q (DIY.com) tie for last place with just 68 points

  *Satisfaction Across Channels:

       *The aggregate score for "Pure Play" retailers has dropped by a single
         point to 73 this year, which signifies that there's work to be done.
         In contrast "Bricks-and-Mortar" shops (e.g. retail chains) have
         slightly increased their aggregate score by one point to 74.

Larry Freed, CEO at ForeSee, commented: "After witnessing the aggregate
customer satisfaction score increasing every year we've reported on the top 40
UK retailers' Christmas performance, it's disappointing to see a drop this
year. It may be a fall of only one point, but this represents significant
fallout for many – especially those which have seen larger drops.

With a proven, quantifiable relationship between a positive customer
experience online and increased loyalty, sales and recommendations, many of
the online retailers in the UK Top 40 clearly need to pay more attention to
satisfying their UK customers. This is especially true of the 19 retailers
listed with an average or lower score, which are risking loyalty,
recommendations, sales and market share."

Freed continued: "A drop in scores for any site is a result of either
retailers not meeting the consumers' rising expectations, or changes to the
sites that turned out to be changes that didn't improve the customer
experience. The good news for those with disappointing scores is that they can
do something about it! By taking a closer look at customers' needs and
expectations and by using analytics to measure what works and doesn't, they
can take control of their sites and make them work even harder for their
businesses into 2014 and beyond."

2013 Customer Satisfaction for the Top 40 UK Online Retailers – full list of
year on yearscores(in descending order)

                                                                                                                             Point
                                                                                                                             Change
                                                                                                                     Point   Since
IMRG                     Satisfaction Satisfaction Satisfaction Satisfaction Satisfaction Satisfaction Satisfaction Change   First
Rank Website                 2007         2008         2009         2010         2011         2012         2013     '12-'13 Measured
 4   amazon.com                    NA           NA           NA           84           82           84           84       0        0
 1   amazon.co.uk                  75           78           83           83           85           86           84      -2        9
 10  johnlewis.com                 69           68           77           78           80           80           79      -1       10
 2   apple.com                     NA           71           76           75           78           77           78       1        7
 6   marksandspencer.com           70           68           73           78           77           75           77       2        7
 18  direct.asda.com               64           NA           NA           72           74           77           76      -1       12
 34  ikea.com                      NA           NA           70           72           71           73           76       3        6
 3   argos.co.uk                   67           70           73           77           77           75           75       0        8
 36  boots.com                     NA           68           70           69           73           74           75       1        7
 9   debenhams.com                 63           61           71           73           72           76           75      -1       12
 15  direct.tesco.com              69           65           72           72           73           74           75       1        6
 12  newlook.com                   NA           NA           73           72           72           74           75       0        2
 5   next.co.uk                    67           66           70           69           72           73           75       2        8
 37  ASDA.co.uk                    64           69           73           76           74           76           74      -2       10
 32  britishairways.com            NA           NA           NA           70           70           72           74       2        4
 25  cineworld.co.uk               NA           NA           NA           75           72           74           74       0       -1
 29  houseoffraser.co.uk           NA           NA           NA           NA           72           73           74       1        2
 33  sportsdirect.com              NA           NA           NA           72           72           74           74       0        2
 8   tesco.com                     NA           NA           NA           73           75           76           74      -2        1
 13  thomson.co.uk                 NA           NA           NA           71           72           73           74       1        3
 38  travelrepublic.com            NA           NA           NA           NA           NA           74           74       0        0
 7   asos.com                      67           70           74           73           73           73           73       0        6
 40  onthebeach.com                NA           NA           NA           NA           NA           NA           73     new      new
 23  riverisland.com               61           63           69           72           71           72           73       1       12
 26  laterooms.com                 NA           NA           NA           NA           NA           NA           72     new      new
 14  lovefilm.com                  NA           NA           NA           76           72           74           72      -2       -4
 16  thetrainline.com              NA           NA           NA           69           74           74           72      -2        3
 27  very.co.uk                    NA           NA           NA           67           NA           72           72       0        5
 21  easyjet.com                   NA           NA           NA           72           71           73           71      -2       -1
 28  expedia.co.uk                 NA           NA           NA           72           70           72           71      -1       -1
 31  halfords.com                  NA           NA           67           NA           NA           NA           71      nm        4
 11  netflix.com                   NA           NA           NA           NA           NA           68           71       3        3
 20  currys.co.uk                  60           60           66           69           73           72           70      -2       10
 24  topshop.com                   NA           NA           70           69           70           71           70      -1        0
 35  homebase.co.uk                NA           NA           67           67           69           71           69      -2        2
 19  thomascook.com                NA           NA           NA           70           69           71           69      -2       -1
 17  diy.com                       53           60           65           65           67           71           68      -3       15
 30  lastminute.com                NA           NA           NA           68           69           70           68      -2        0
 39  ticketmaster.co.uk            NA           NA           65           64           NA           69           68      -1        3
 22  ryanair.com                   NA           NA           NA           61           64           61           60      -1       -1
* The composition of companies included in the Index changes considerably over the years. In 2007 and 2008, ForeSee measured only
the top 30 retailers; in 2009, 2010, 2011, and 2012, the company measured the top 40. The list of top retailers has also changed
over time as companies have slipped into and out of the top 40, and in 2010, ForeSee synchronised the list selection with the IMRG
Experian Hitwise Hot 100 Retailer list, which is a ranking of UK e-retailers based on site traffic.

About the Research The ForeSee Experience Index (FXI): 2013 UK Retail Edition,
uses the ForeSee® CXA(SM) methodology to measure customer experience with the
top 40 online UK retail brands, as ranked by IMRG Experian Hitwise Hot 100
Retailer list. The satisfaction scores in this specific report reflect data
collected from November 18 ^th to December 5 ^th from a sample of nearly
10,000 shoppers who had visited any of the top 40 retail websites this
Christmas season. The ForeSee predictive CXA(SM) methodology measures the
customer experience and the likelihood of customers to engage in desired
future behaviours such as Retention, Upsell and Recommend. Satisfaction data
was collected from a nationwide panel of more than 460,000 consumer households
that have agreed to participate in opt-in surveys provided by Global Market
Insite (GMI).

About ForeSee As a pioneer in customer experience analytics, ForeSee
continuously measures satisfaction and delivers powerful insights on where to
prioritise improvements for maximum impact. ForeSee applies its trusted
technology across channels and customer touchpoints, including websites, call
centres, bricks-and-mortar locations, mobile experiences and social media
interactions. Because the proven ForeSee® CXA(SM) methodology measures
satisfaction in a manner that is predictive of customer loyalty, purchase
behaviour and future financial success, executives and managers are able to
drive future success by confidently prioritising the efforts that they know
will achieve business goals.

Visit: http://www.foresee.com/ for customer experience solutions and original
research.

Note to Editors: A picture accompanying this release is available through the
PA Photowire. It can be viewed at http://www.mediapoint.press.net or
http://www.prnewswire.co.uk

Nikki AlveySenior AssociateThe PR NetworkTel: (0)7973 354 706

Website: http://www.ForeSeeResults.com
 
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