Amazon and Apple were among the top customer satisfaction performers this holiday season, while Netflix fell due to its much publicized price-raising blunder. Other top retailers included avon.com, JCP.com and vistaprint.com. Online retailers like overstock.com and gap.com scored the lowest, garnering 72 and 73 respectively.
In its annual Holiday E-Retail Satisfaction Index, analytics firm ForeSee revealed Amazon climbed two points to lead the pack with a total score of 88 out of 100, taking top spot for the fourteenth consecutive study. On the opposite end of the spectrum, Netflix took a big dive to 79 (down from 86) after the DVD and streaming website bungled its price-hike and spin-off service, falling in every ForeSee category: site content, site functionality, merchandise and prices. In addition, Netflix shares became less valuable by over half in 2011, dropping most significantly in the last two quarters.
“Netflix totally misread its customer base and is paying the price, damaging its brand among both consumers and investors,” said Larry Freed, chief executive officer of ForSee.
In previous years, Netflix and Amazon were only separated by a point or two on the customer satisfaction scale. Now they’re almost ten points apart as Amazon’s video streaming and rentals service continues to gain in popularity, especially with the release of its Kindle Fire.
Because Amazon has branched out into almost every retail category, the company is making it difficult for other online retailers to compete, Freed said. “E-retailers have consistently upped their game since we first started measuring holiday satisfaction in 2005, but Amazon is still the 800-pound gorilla of retail, and it just keeps getting better. It’s tough for a smaller retailer to compete with this level of dedication to providing an excellent customer experience.”
The scores are representative of revenue as well, Freed revealed. “It is not surprising that most of the sites receiving the top 40 largest revenues according to Internet Retailer also have very high satisfaction scores.” Keep customers satisfied, and in return you’ll get loyalty, recommendations, sales and a bigger marketshare. Netflix is a prime example of what not to do.
What company were you most satisfied with over the holiday season?