Netflix tops customer satisfaction survey

May 15, 2008 (Computerworld) Online DVD rental service Netflix.com did the best job of satisfying its customers, according to ForeSee Results Top 100 Online Retail Satisfaction Index, which was released today.

The survey uses the American Customer Satisfaction Index, which measures the online performance of a variety of sites. In early spring, ForeSee Results collected data from more than 24,000 respondents who had visited the top 100 online retail sites but didn't necessarily make a purchase.

Netflix led other online retailers with a score of 86 on the study's 100-point scale. QVC.com, with a score of 84, came in second, and Amazon.com, with 83 points, was third, according to the survey. It was the fourth consecutive year that these companies were in the top three. Overall customer satisfaction with the top 100 online retailers was up 1.4%, to a score of 75.

"The Web continues to be a bright spot in retail, which is good news for retailers and even better news for consumers," said Larry Freed, president and CEO of ForeSee Results. "When competition for limited consumer dollars is fierce, as it is now in a weak economy, retailers are searching for ways to convert browsers to buyers. Providing a satisfying Web site experience is the first place to start."

According to the survey, consumers who are happy with their online shopping experiences are loyal customers who will make purchases and tell others about their experiences.

In fact, online shoppers who were very satisfied with their online shopping experiences were 69% more likely to purchase from a particular online retailer the next time they shopped for similar merchandise; 75% were more likely to purchase online; 42% were more likely to purchase offline; and 75% were more likely to recommend the online retailer, according to the survey. To increase customer satisfaction, online retailers should focus on improving consumers' online shopping experiences, Freed said in a statement.

"The more satisfied a customer is with a Web site, the better the opportunity for the retailer to impact its bottom line," Freed said in the statement. "Customer satisfaction builds loyalty, increases brand recognition and ultimately leads to future sales."

The books/CDs/DVDs and sporting goods categories led the product category rankings with an aggregate score of 76; food and drug, mass merchants and specialty retailers had an aggregate score of 75; and apparel and accessories and computers/electronics had an aggregate score of 74.

The survey said the companies that provided the most satisfying online experiences in the computers/electronics category were Apple Inc., with a score of 80; Newegg Inc., also with 80; and Hewlett-Packard Co., with a score of 79.