Amazon, Netflix tie atop online satisfaction rankings

Next Generation Communications

[December 31, 2008]

Amazon, Netflix tie atop online satisfaction rankings

Dec 31, 2008 (Detroit Free Press - McClatchy-Tribune Information Services via COMTEX) --
Amazon and Netflix ranked highest in customer satisfaction this holiday season, according to a survey released Tuesday.

The annual Top 40 online retail satisfaction index from Ann Arbor-based ForeSee Results and FGI Research uses the University of Michigan's customer satisfaction index methodology to rank the Web sites on a 100-point scale.

Both Amazon and Netflix scored 84 and QVC ranked third with a score of 79.
Amazon just reported its best holiday season in 14 years and has estimated its fourth-quarter sales at between $6 billion and $7 billion, up from $5.7 billion in the same quarter last year.

"Amazon is setting the bar for online retail satisfaction and sales, and I expect they will have better financial results than the rest," said Larry Freed, president and CEO of ForeSee Results.

Nearly 40% of the 40 retailers on the list declined in one of the worst holiday retail seasons in years.

"That's just not playing to win in this economy," Freed said.
Web sites that were below industry standards for customer satisfaction included Circuit City, the Gap, Home Depot, HSN, Neiman Marcus and Overstock.com, the survey found.

The study found that a highly satisfied online shopper is 73% more likely to purchase online and 38% more likely to purchase at stores.

Ten Web sites improved customer satisfaction since last holiday season, including Wal-Mart, HP, Staples and Target.

Freed said that prices are important to satisfaction online, but improvements to merchandise and functionality are equally important to scoring well with consumers.

The annual report is based on surveys of more than 9,000 visitors to the top 40 e-retail sites, according to sales revenue reported by Internet Retailer.

Contact GRETA GUEST at gguest@freepress.com.
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