A2-based Foresee Results releases national E-Retail satisfaction index

Netflix and QVC.com topped Ann Arbor-based Foresee Result's Top 100 Online Retail Satisfaction Index for 2007. To conduct the study, Foresee utilized the University of Michigan-developed American Customer Satisfaction Index (ACSI), a highly-regarded tool that analyzes consumer habits as shaped by perceived satisfaction.

Foresee studied the top 100 on-line retailers as identified in the June 2007 issue of Internet Retailer. They studied consumer satisfaction in four basic areas: price, merchandise selection, actual site experience and brand image and trust. Results were based on surveys of 20,000 consumers.

Netflix and QVC.com both scored a satisfaction score of 85 on the 100-point scale. Other high scorers include Amazon.com (83), Barnes & Noble (82), DrsFosterSmith.com (81), LLBean.com (79) and Apple.com (79).

The lowest scorers were PCMall.com and PCConnection.com with a score of 67. Luxury retail such as Macys.com (69), NeimanMarcus.com (69) and SaksFifthAvenue.com (70) also fared poorly.

Foresee president Larry Freed believes that luxury retailers' on-line shopping have not fared well because of their unique and pricey merchandise selection. "They're getting a broader audience then they are getting in the store. When you walk into a Neiman Marcus, you immediately have a sense for where you are, in what kind of store -- you had to seek it out. With on-line, the good news is that you are available at anytime, anywhere, for anybody." High-end retailers tend to service a niche market and, with the ubiquity of the internet, "they may be getting people beyond that coming to site."

Freed says that on-line customer satisfaction is, in large part, about meeting expectations, with price playing a smaller role than might be expected. "Price is often an item that a consumers is not very happy with – it's the lowest scoring element." But, he goes on to explain, "With only 5% of consumers did improving price have the biggest impact on improving satisfaction." To improve satisfaction, the site experience and image and trust of band were much more significant. "That's where retailers get their biggest paycheck."

The study also found that the "buy on-line and pick-up in-store" option is not as popular as expected. "Only 5% of shoppers chose buy on-line and pick up in store as their shopping preference – and those shoppers are less satisfied, also also by about 5%. It's a little bit over-hyped and little bit underutilized," says Freed.

While satisfaction may seem an ephemeral concept to a layman, Freed has it down to a science. His definition: "a combination of what you get and what you expect."

Source: Larry Freed, ForeSee Results
Writer: Kelli B. Kavanaugh