UK's Best and Worst E-Tailers Named in ForeSee Results Christmas 2010 Online Retail Customer Satisfaction Index
By Foresee Results, PRNETuesday, December 21, 2010
…Study shows the widening gap between the best retail websites in the UK and the rest…
LONDON, December 22, 2010 - ForeSee Results, market leaders of customer satisfaction measurement and
management, has today announced the findings of its annual Christmas customer
satisfaction Index across the UK's top 40 online retail websites during
December. After a huge year-on-year increase in online customer satisfaction
from 2008 to 2009 (from 67 to 71 on a 100-point scale), customer satisfaction
has increased only slightly in 2010 (from 71 to 72). This is significant
because highly satisfied visitors to retail websites in the UK say they are
57% more committed to the brand overall, 59% more likely to purchase online,
33% more likely to purchase offline, and 69% more likely to recommend the
retailer. There is a powerful and quantifiable impact when customers have a
good experience, with demonstrable return on investment.
By comparing scores to the overall aggregate for UK online retailers
(72), any retailer falling 72 or lower is risking loyalty, recommendations,
sales, and market share. By this measure, the research shows that 24 online
retailers (nearly two-thirds) are underperforming their UK peers. Despite
these findings, the research also indicates that the gap between the best
retail websites in the UK and the rest is huge and possibly widening. While
the year-on-year increase in satisfaction is small in the aggregate,
individual retailers have seen big gains. The best and biggest online
retailers are typically providing a much better online experience, and
smaller retailers are falling further behind.
This is the fourth year that ForeSee Results have measured customer
satisfaction with the top 40 online retailers in the UK, enabling valuable
year-on-year comparison to see which retailers have improved and which have
slipped over time. The Index measured four high level factors that affect
overall customer satisfaction: Functionality, Price, Merchandise and Content.
Over 10,000 survey responses were collected from shoppers who had visited the
top 40 online retail websites in the UK in November and December.
Key trends: Retailer Satisfaction Ratings
- The Leaders: Amazon.com (84) was measured for the first time
this year as a separate site, and it slightly edges out the long-
standing top performer amongst UK online retailers, Amazon.co.uk (83).
Perennially high-scoring Play.com increases two points to round out the
top three companies scoring over 80 (last year, only one website scored
over 80, generally considered the threshold for excellence whilst using
this methodology). John Lewis increases one point to 78, and Marks and
Spencer enters the top five for the first time in the study's four-year
History with a five point year-on-year increase.
- The Fallers: Only seven of the 40 websites (18%) saw scores
decline, but all decreased only by one point except for Dell EMEA,
which declined three points since last year to a score of 68, below the
online retail aggregate of 72.
- The Widening Gap: When comparing the largest online retailers (in
terms of revenue, as ranked by IMRG) to the rest of the group, it is
clear that the largest retailers have the highest satisfaction. In
fact, the average satisfaction of the top 10 online retailers (in terms
of revenue) is 77; whilst the average satisfaction for the rest is a
71, a gap of six points. In addition, the 10 online retailers with the
best satisfaction had an average increase of two points each, while the
other thirty retailers averaged no change since last year. In short,
the best are getting better, while the rest are slipping.
- The Most Improved: Of the 40 measured UK online retailers,
fourteen (roughly one-third) saw year-on-year increases of at least a
point or more. The most notable increases are all companies that build
on substantial gains last year by not resting on their laurels and
continuing to improve the customer experience on an ongoing basis.
- Marks and Spencer (78): up five points since last year; up eight
points since 2008
- Argos (77): up four points since last year; up 10 points since 2007
- ASDA (76): up three points since last year; up 12 points since 2007
- Next (74): up three points since last year; up seven points since
2007
- River Island (72): up three points since last year; up 11 points
since 2007
- Littlewoods (71): up five points since last year; up seven points
since 2007
- Curry's (69): up three points since last year; up nine points
since 2007
- Internet pure plays outperform multichannel retailers again: Pure
Plays score 76, up two points on last year. Retail chains score 72 and
Multichannel retailers score 71, up by 2 and 1 point respectively on
Last year and trailing the Internet pure plays significantly.
- UK Vs US: With an aggregate score of 78, American websites are
outperforming UK websites by six points, but the gap is closing. Last
year, the gap was eight points.
- Satisfaction by categories: Individual retailers at the top
of their game in various categories include Amazon.com, Amazon.co.uk,
Play.com, John Lewis, Marks and Spencer, Apple, Next, Cineworld,
Easyjet, Expedia.com, Screwfix, HMV, and ASDA.
- Customer satisfaction matters more than ever. Compared to
online retailers with average satisfaction scores of 69 or lower, those
scoring 77 or more had notably high than average scores for future
purchase, brand commitment, and recommending the site.
- To improve satisfaction, online retailers need to improve
certain, specific website elements. On aggregate, retailers need to
focus on improving Price (either actual prices or just customers'
perceptions of prices) as well as the availability, variety, and appeal
of Merchandise.
- Social Media: Fewer than 4 percent of online Christmas
shoppers report being primarily influenced by social media channels to
visit a website. 10 percent visit websites as a result of a promotional
email and 13 percent as a result of search engine trawls. A huge 46
percent are primarily influenced by their familiarity with a brand.
- Mobile Shopping and Apps: 10 percent of shoppers have
accessed the website for the company they rated via their mobile phone.
Those that did were primarily using their mobile or smart phone to look
up prices, compare product specifications, or do product research. Only
1.3 percent of all online shoppers actually made a purchase on their
mobile phone.
- The Multichannel Experience: Nearly half of site visitors
(49 percent) come to a website just to research; not to buy. Roughly
one-fifth of shoppers plan to research online and then buy in the store;
a multichannel impact and value that is probably not captured or
quantified by the retailer in question.
Christmas 2010 Customer Satisfaction for the Top 40 UK Online Retailers -
full list of year on year scores (in descending order)
Satisfaction Satisfaction Satisfaction
Company Name Website 2007 2008 2009
------------ ------- ------------- ------------ ------------
Aggregate Satisfaction for
Top UK E-Retailers* 66 67 71
-------------------------- --- --- ---
Amazon.com amazon.com NM NM NM
---------- ----------- --- --- ---
Amazon UK amazon.co.uk 75 78 83
--------- ------------- --- --- ---
Play.com play.com 76 78 79
-------- --------- --- --- ---
John Lewis johnlewis.com 69 68 77
---------- ------------- --- --- ---
Marks and
Spencer marksandspencer.com 70 68 73
--------- ------------------- --- --- ---
Argos argos.co.uk 67 70 73
----- ----------- --- --- ---
Asda asda.co.uk 64 69 73
---- ---------- --- --- ---
HMV hmv.com 70 69 75
--- ------- --- --- ---
Lovefilm.com lovefilm.com NM NM NM
------------ ------------ --- --- ---
Apple apple.com NM 71 76
----- --------- --- --- ---
Cineworld
Cinemas cineworld.co.uk NM NM NM
--------- --------------- --- --- ---
Screwfix.com screwfix.com 69 71 74
------------ ------------ --- --- ---
Next next.co.uk 67 66 71
---- ---------- --- --- ---
Asos asos.com 67 70 74
---- -------- --- --- ---
Debenhams debenhams.com 63 61 71
--------- ------------- --- --- ---
Tesco tesco.com NM NM NM
----- --------- --- --- ---
Asda Direct direct.asda.com NM NM NM
----------- --------------- --- --- ---
Tesco Direct direct.tesco.com 69 65 72
------------ ---------------- --- --- ---
Easyjet.com easyjet.com NM NM NM
----------- ----------- --- --- ---
Expedia.co.uk expedia.co.uk NM NM NM
------------- ------------- --- --- ---
New Look newlook.com NM NM 73
-------- ----------- --- --- ---
Odeon Cinemas odeon.co.uk NM NM NM
------------- ----------- --- --- ---
River Island riverisland.com 61 63 69
------------ --------------- --- --- ---
Sainsbury's sainsbury.co.uk NM NM 73
----------- --------------- --- --- ---
Littlewoods.com littlewoods.com 64 62 66
--------------- --------------- --- --- ---
Thomson thomson.uk NM NM NM
------- ---------- --- --- ---
British
Airways britishairways.com NM NM NM
------- ------------------ --- --- ---
Thomas Cook thomascook.com NM NM NM
----------- -------------- --- --- ---
Currys currys.co.uk 60 60 66
------ ------------ --- --- ---
Hp hp.com NM NM NM
--- ------ --- --- ---
Thetrainline.com thetrainline.com NM NM NM
---------------- ---------------- --- --- ---
Topshop.com topshop.com NM NM 70
----------- ----------- --- --- ---
Comet comet.co.uk 60 61 68
----- ----------- --- --- ---
Dell EMEA euro.dell.com NM NM 71
--------- ------------- --- --- ---
Lastminute.com lastminute.com NM NM NM
-------------- -------------- --- --- ---
Homebase homebase.co.uk NM NM 67
-------- -------------- --- --- ---
Very.co.uk very.co.uk NM NM NM
---------- ---------- --- --- ---
B&Q diy.com 53 60 65
--- ------- --- --- ---
Ticketmaster
United
Kingdom ticketmaster.co.uk NM NM 65
------------ ------------------ --- --- ---
RyanAir ryaNMir.com NM NM NM
------- ----------- --- --- ---
Point
Change
Since
Satisfaction Last
Company Name Website 2010 Year
------------ ------- ------------ ------
Aggregate Satisfaction for
Top UK E-Retailers* 72 1
-------------------------- --- ---
Amazon.com amazon.com 84 -
---------- ---------- --- ---
Amazon UK amazon.co.uk 83 0
--------- ------------ --- ---
Play.com play.com 81 2
-------- -------- --- ---
John Lewis johnlewis.com 78 1
---------- ------------- --- ---
Marks and
Spencer marksandspencer.com 78 5
--------- ------------------- --- ---
Argos argos.co.uk 77 4
----- ----------- --- ---
Asda asda.co.uk 76 3
---- ---------- --- ---
HMV hmv.com 76 1
--- ------- --- ---
Lovefilm.com lovefilm.com 76 -
------------ ------------ --- ---
Apple apple.com 75 -1
----- --------- --- ---
Cineworld
Cinemas cineworld.co.uk 75 -
--------- --------------- --- ---
Screwfix.com screwfix.com 75 1
------------ ------------ --- ---
Next next.co.uk 74 3
---- ---------- --- ---
Asos asos.com 73 -1
---- -------- --- ---
Debenhams debenhams.com 73 2
--------- ------------- --- ---
Tesco tesco.com 73 -
----- --------- --- ---
Asda Direct direct.asda.com 72 -
----------- --------------- --- ---
Tesco Direct direct.tesco.com 72 0
------------ ---------------- --- ---
Easyjet.com easyjet.com 72 -
----------- ----------- --- ---
Expedia.co.uk expedia.co.uk 72 -
------------- ------------- --- ---
New Look newlook.com 72 -1
-------- ----------- --- ---
Odeon Cinemas odeon.co.uk 72 -
------------- ----------- --- ---
River Island riverisland.com 72 3
------------ --------------- --- ---
Sainsbury's sainsbury.co.uk 72 -1
----------- --------------- --- ---
Littlewoods.com littlewoods.com 71 5
--------------- --------------- --- ---
Thomson thomson.uk 71 -
------- ---------- --- ---
British
Airways britishairways.com 70 -
------- ------------------ --- ---
Thomas Cook thomascook.com 70 -
----------- -------------- --- ---
Currys currys.co.uk 69 3
------ ------------ --- ---
Hp hp.com 69 -
--- ------ --- ---
Thetrainline.com thetrainline.com 69 -
---------------- ---------------- --- ---
Topshop.com topshop.com 69 -1
----------- ----------- --- ---
Comet comet.co.uk 68 0
----- ----------- --- ---
Dell EMEA euro.dell.com 68 -3
--------- ------------- --- ---
Lastminute.com lastminute.com 68 -
-------------- -------------- --- ---
Homebase homebase.co.uk 67 0
-------- -------------- --- ---
Very.co.uk very.co.uk 67 -
---------- ---------- --- ---
B&Q diy.com 65 0
--- ------- --- ---
Ticketmaster
United
Kingdom ticketmaster.co.uk 64 -1
------------ ------------------ --- ---
RyanAir ryaNMir.com 61 -
------- ----------- --- ---
Larry Freed, CEO at ForeSee Results commented: "To the general public a
small point increase may seem insignificant, however for the Top 100 American
retailers a one-point change in website satisfaction was found to predict a
14 percent change in the log of revenues generated on the web! We've found
similar relationships between customer satisfaction and revenue in previous
years so for Marks & Spencer to see a five point year-on-year increase is
good news for them and could predict a huge increase in online revenue."
"The findings around how shoppers are interacting with retailers also
threw up a few surprises - that just 4 percent reported they were primarily
influenced by social media to visit the site and only 1.3 percent are making
purchases using their mobile phones - both marketing channels that retailers
appear to be heavily investing in, with apparently little return or interest
from their customers," said Kevin Ertell, Vice President of Retail Strategy
at ForeSee Results. "While social and mobile may play a significant role in
the future of online commerce, it's important to recognise they play a
relatively small role today and getting basic web experience right is still
hugely important. Retailers need to tune into and fully understand what their
customers want from them and focus their attention on converting browsers
into customers. Satisfied customers will return, recommend and stay loyal -
worth their weight in gold."
About the research
ForeSee Results Online Retail Satisfaction Index (UK Christmas Edition)
is based upon a customer satisfaction methodology developed at the University
of Michigan that is the only cross-industry methodology proving that
organisations that more effectively satisfy customers realise higher
financial returns. With origins in Sweden where it was originally developed
as the Swedish Barometer, this methodology has been adopted as a national
measure of customer satisfaction by the United States (American Customer
Satisfaction Index), the United Kingdom (National Customer Satisfaction Index
UK) as well as by governments in Colombia, Korea, Mexico, Sweden, Turkey and
elsewhere. For the past eight years, ForeSee Results has been measuring
online customer satisfaction, and measures leading retail sites including
Best Buy, Sears and Target using this scientific approach. Additionally, the
firm produces the annual US-based Top 40 Online Retail Satisfaction Index,
which provides an interesting point of comparison to customer satisfaction
with UK online retail.
The list of retailers was based on site traffic volume data from IMRG
sources. The survey represents nearly 10,000 customer surveys.
Survey responses were collected from 23 November through 14 December from
shoppers who had visited the Top 40 retail websites within the previous two
weeks or travel websites within the last six months.
Survey responses for this study were collected via an online panel
provided by Research Now, a leading international online panel and fieldwork
organisation. Research Now owns the largest online panel in the UK, comprised
of 400,000 consumers, spanning England, Scotland, Wales and Ireland.
About ForeSee Results
As the leader in customer satisfaction measurement, ForeSee Results
captures and analyses voice of customer data to help public and private
sector organisations increase loyalty, recommendations and website value.
Using the methodology of the American Customer Satisfaction Index (ACSI),
ForeSee Results identifies improvements to websites and other online
initiatives that drive customer satisfaction. With over 50 million survey
responses collected to date and benchmarks across dozens of industries,
ForeSee Results offers unparalleled expertise in customer satisfaction
measurement and management around the globe. ForeSee Results can be found
online at www.ForeSeeResults.com.
Press Contact
Nikki Alvey, The PR Network
Tel: +44(0)7973-354-706
Nikki.alvey@theprnetwork.co.uk
Nikki Alvey, The PR Network, Tel: +44(0)7973-354-706, Nikki.alvey at theprnetwork.co.uk
Tags: December 22, Foresee Results, London, United Kingdom
