Welcome!

News Feed Item

ForeSee Holiday Retail Report: Supermarket Chain Surpasses Apple Store; Amazon and L.L.Bean Lead in Customer Satisfaction

Multichannel retailers win while customer loyalty wanes for biggest U.S. retailers; satisfaction stagnates across Web and Mobile channels during 2013 holiday season

ANN ARBOR, Mich., Jan. 7, 2014 /PRNewswire/ -- ForeSee, the global leader in technology-driven customer experience analytics, today released the ForeSee Experience Index (FXI): 2013 U.S. Retail Edition. Based on data gathered during 2013's holiday shopping season, the report features company-level and channel-specific customer satisfaction analysis for the top 100 U.S. retailers.

(Logo: http://photos.prnewswire.com/prnh/20110819/DE54780LOGO )

This five-part report goes beyond the annual ForeSee E-Retail Satisfaction Index (U.S. Holiday Edition) produced for the last eight years, which measured customers' Web and Mobile experiences with e-retailers. The new FXI Retail report offers a comprehensive view of satisfaction at the Company-level and across every applicable sales channel including Store and Contact Center as well as Web and Mobile. The study is based on more than 67,600 surveys collected between Nov. 29 and Dec. 17, 2013, for the 100 biggest U.S. retailers as reported by the Fortune 500 and Internet Retailer's top 100 websites. Retailers listed in this report include Amazon, Dell, L.L.Bean, Apple, QVC, Keurig, Costco, Ralph Lauren, Victoria's Secret, Barnes & Noble, eBay, Groupon, Family Dollar, Best Buy, Toys "R" Us, Zulily and others.

"The results of ForeSee's most comprehensive holiday report provide interesting insights into the holiday shopping experience," said Larry Freed, president and CEO of ForeSee. "The data shows that customer loyalty for retailers is on the decline, yet consumers are satisfied with the top retail brands and had the best experience with retailers who mastered the multichannel experience. While Amazon continues to reign supreme across multiple channels, several retailers have identified critical drivers for increased sales and have made great strides to improve the multichannel customer experience, setting themselves up for success into 2014."

Key Findings:

  • Company-level: retailers that satisfied the most (and least) during 2013's holiday shopping season:
    • Amazon (90) and L.L.Bean (90) tied for the highest Company-level satisfaction. While this is the first time ForeSee has studied Company-level satisfaction during the holidays, the L.L.Bean website has scored an 80 or above in Web satisfaction eight out of the nine years measured, and Amazon has topped the Web satisfaction list every year. Amazon and L.L.Bean set the bar for customer experience excellence.
    • Priceline.com came in with the lowest Company-level satisfaction (76), as well as one of the lowest Web satisfaction (75) and Mobile satisfaction (73) scores.
  • Store channel: Apple, which prides itself on stellar Apple Store customer experiences, lost to the supermarket chain Publix Super Markets in Store satisfaction with a score of 86 – three points higher than Apple's score of 83.
    • 53 percent of retailers register merchandise as the main priority affecting in-store purchase, and 35 percent register service.
  • Web channel: While Amazon (88) led the pack for Web satisfaction, some retail sites such as vitacost.com (86), keurig.com (84) and llbean.com (84) are creeping closer. Basspro.com (83) and crateandbarrel.com (80) tied for the most improved sites with seven-point gains in customer satisfaction from last year. 
    • 57 percent of retailers identify merchandise as the top driver affecting customer web experience, compared to only 7 percent that register price.
  • Mobile channel: In a category that saw satisfaction stagnate this year, Walmart (80) was the only company to experience a significant increase of more than three points in Mobile satisfaction, seeing a five-point improvement from 2012's score. Again, Amazon led the pack with a Mobile satisfaction score of 87.
    • 38 percent of retailers register functionality as the top priority affecting the mobile customer experience, above both merchandise (34 percent) and content (31 percent).
  • Contact Center channel: QVC (88) beat Amazon (85) in Contact Center satisfaction by three points. Costco (85) and O'Reilly Auto Parts (85) tied Amazon in Contact Center satisfaction.
    • 55 percent of retailers record knowledge of the customer service representative as the top priority affecting the customer contact center experience.

 

Holiday Satisfaction Trends:

  • Customers' loyalty wanes: 12 percent of customers surveyed said they only considered one company when making a purchase.
    • Almost half (49 percent) of people reported that the company they visited was one of several companies they considered equally when shopping.
  • Multichannel retailers satisfy shoppers: The most satisfied shoppers this holiday season were the ones that interacted with a retailer across multiple channels.
    • The majority of customers (57 percent) were single-channel users with a satisfaction score of 82, and the remaining 43 percent who used two or more channels to engage with the company recorded a satisfaction score of 85.
  • Customer satisfaction during 2013's holiday shopping season is predictive of 2014 business success for retailers: When comparing the future behaviors of highly satisfied customers (with satisfaction scores of 80 or higher) to less satisfied customers (with satisfaction scores of 69 or less), ForeSee found that highly satisfied customers this holiday shopping season report being:
    • 71 percent more likely to prefer the company to others
    • 57 percent more likely to retain loyalty to the company
    • 72 percent more likely to purchase additional products or services from the company
    • 64 percent more likely to purchase next time they are in the market to buy similar products or services
    • 63 percent more likely to give a positive recommendation
    • 60 percent more likely to trust the company

Analysis of Findings – Opportunities and Risks:

  • Customers view their experience with a company as an experience with a company, not as an experience with an individual channel. While most retailers still operate in silos, those retailers who have developed a cohesive multichannel strategy to encourage shoppers to engage across channels have a prime opportunity in 2014 for future success.
  • Store customer service is crucial to retailers' bottom lines. Online commerce is growing nearly five times faster than retail overall, but accounts for roughly 14 percent of retail sales during November and December (source: Comscore). Since customer service is one of the primary drivers of in-store satisfaction, retailers that provide the best in-store service will reap the rewards.  
  • Web and Mobile stagnation presents risks for retailers. In a fiercely competitive holiday retail environment where 12 percent of customers only considered one retailer when making a purchase, retailers cannot afford to let their Web and Mobile satisfaction stagnate. Retailers looking to gain an edge in customer loyalty must make improvements to the primary drivers of satisfaction to find ways to recover the Web and Mobile customer experience in 2014.

Resources:

About ForeSee

As a pioneer in customer experience analytics, ForeSee continuously measures satisfaction across customer touchpoints 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 www.foresee.com for customer experience solutions and original research.

Contact:
Sarah Allen-Short, 734-327-3852
[email protected]

SOURCE ForeSee

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...