Amazon.co.uk and amazon.com led ForeSee’s annual Holiday E-Retail Satisfaction Index Customer Satisfaction Scores for the Top 40 Retail Websites in the UK.
Amazon.uk garnered 86 points, to stay ahead of Amazon.com, which recorded 84 points. John Lewis (80) stayed at in third this year, rounding out the list of three companies that surpass the excellence threshold of 80. Play.com (79), Apple (77), and ASDA Direct (77) also appear at the top of the Index.
“This is the sixth year that ForeSee has conducted an analysis of the Christmas shopping experience that customers are having with the UK’s top 40 online retailers. This revealing data, the result of almost 10,000 customer surveys collected during the prime Christmas shopping time (in November and December), 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: Not much has changed at the top of the leader board. Keeping in mind that scores at or above 80 are generally considered the threshold of excellence, Amazon.co.uk recorded an 86 this year, a one point increase from 2011, to stay ahead of U.S. counterpart, Amazon.com (up two points to 84)—a feat that helps to validate the strategy of having country-specific sites (at least for Amazon). John Lewis (80) holds steady in third this year, rounding out the list of three companies that surpass the excellence threshold of 80. Play.com (79), Apple (77), and ASDA Direct (77) also appear at the top of the Index.
- The Fallers: Perennial low-scorer ryanair registers the only decline of three points or more (down three points to 61), making it the lowest-scoring company in the Index by a wide margin, it rests a full seven points behind Netflix (68) in the second-to-last spot.
- The Most Improved: This year’s largest increases went to Debenhams (up four points to 76) and B&Q’s website DIY.com (up four points to 71), followed by ASDA Direct (up three points to 77). Given that, on average, a one-point satisfaction increase predicts a 14% increase in the log of revenues generated on the web, these increases could translate to significant business value for these companies.
- Mind the ‘Satisfaction’ Gap: Currently, there is a notable 25-point gap between the highest-scoring e-retailer (Amazon.co.uk, 86) and the lowest (ryanair.com, 61), a broad range for a sophisticated industry. Moreover, average satisfaction for the top 40 e-retailers is 74, but just 11 of the measured companies surpass that average. It’s going to be much easier for companies that provide a superior customer experience to capitalize on UK customers’ increasing preference for online retail.
- Customer satisfaction matters. A highly satisfied online shopper in the UK reports being 62% more likely than a dissatisfied shopper to buy from that retailer online in the future, 58% more likely to buy from the retailer the next time they need similar merchandise (a proxy for customer loyalty), as well as being far more likely to return to the site, recommend it, and show commitment to the brand.
- 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 14 online retailers in this classification, the aggregate score was 77 this year—the same as it was in 2010 and 2011. 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.co.uk (86), Amazon.com (84), JohnLewis.com (80), and Play.com (79) lead this group as they do the entire index. Very.co.uk and Riverisland.com bottom out this group with scores of 72 apiece.
- Travel and Tourism – The nine websites included in this category recorded an average score of 71, up two points from 2011. Thetrainline.com (74) and Travel Republic (74) topped the list whilst perennial low scorer ryanair (with 61) 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.
- Apparel and Accessories – With just four online retailers in this category, no category score was calculated(a minimum of five sites is required). However, three of the four sites scored comparably, with only Topshop.com slightly behind the pack.”