Kohl's, Costco make biggest online improvements

Survey finds overall satisfaction with online retailers slips

Ann Arbor, Mich. -- Customer satisfaction with major online retailers is on the wane, falling 3% since last year. The big factor: price.

The annual Top 100 Online Retail Satisfaction Index from ForeSee Results and FGI Research found the aggregate rating for the top 100 online retailers (by sales volume) was 73 on a 100-point scale. The research, which employs the methodology of the University of Michigan’s American Customer Satisfaction Index (ACSI), is based on surveys of over 22,000 visitors to the top 100 e-retail websites by sales volume.

While price is typically a low-scoring element in the survey, this year it became a bigger factor.

 “This doesn’t mean companies should start slashing prices, but it does reflect the current mood of the consumers are punishing retailers if they feel prices aren’t fair or competitive,” said study author Larry Freed, president and ceo of ForeSee. Netflix (85) and Amazon (84) lead all e-retailers for a fifth year in a row.

The largest improvements in customer satisfaction were earned by Kohls.com (+6% year-over-year to 76) and Costco (+3% since last year, and +6% since 2005).

Only 16 of the top 100 e-retailers improved, while over half declined.  JCPenney (77) and Fingerhut (71) were flat year-over-year.

Retailers new to the survey included Blair (74), Ralph Lauren (72), NetShops (68), Urban Outfitters (67), and Market America (63).

Customer satisfaction is an indicator of future performance, said Freed. That so many companies lost ground in the survey is “a real canary in a coal mine for future sales online and offline, loyalty, retention, and return visits.”

Highly satisfied shoppers are 71% more likely to purchase online than dissatisfied shoppers, and 72% more likely to recommend the website. Shoppers who are happy with the web service are 44% more likely to purchase in-store.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

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See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!