Shop Talk

Netflix tops customer satisfaction survey

Online retail may be outperforming brick-and-mortar rivals amid the U.S. recession, but that’s no reason to get complacent.

In a wake-up call to the industry, a new survey shows that customer satisfaction with online retailers declined 3 percent from last year.

The slipping satisfaction level uncovered in ForeSee Results’ Top 100 Online Retail Satisfaction Index is a “remarkable trend,” according to its author.

The report — which surveyed 22,000 respondents to measure customer satisfaction at the top 100 online retailers by sales volume — found that the top performers were outweighed by more bottom performers, with 55 online retailers seeing their scores drop from last year.   “Customer satisfaction, when measured scientifically, is not just a number or a beauty contest. It is a direct precursor of customer behaviors that have a measurable and quantifiable ability to impact sales and profitability,” warned author Larry Freed.      A 1 point increase in customer satisfaction is equivalent to nearly 9 percent growth in online sales, the report found, while a satisfied shopper is 71 percent more likely to buy than a dissatisfied one.       First, the good news: Netflix.com is still No 1, followed by Amazon.com, with the top two companies maintaining their spots for five years in a row.  Avon.com came in third.

While a score of 80 or above represents a superior job, those logging lower than a 70 need some help.

That group includes 1800Flowers.com, BlueNile.com, JCrew.com, UrbanOutfitters.com and RestorationHardware.com.

The biggest year-over-year declines in customer satisfaction came from discounter Etronics.com and book retailer efollett.com, both also among the worst performers.      “It is surprising that any of the top 100 retailers could get away with scores in the 60s and maintain any kind of market dominance for very long,” wrote Freed.      While not in the bottom group, sites including CVS.com, NeimanMarcus.com, Apple.com and Blockbuster.com all saw their ratings fall over 6 percent from the prior year.

“I swear to wear J. Crew…”

Millions of Americans were cheering this morning as Barack Obama was sworn in as the 44th President of the United States, and one U.S. retailer was likely grinning ear to ear.      J Crew made an impression on the steps of the Capitol, as all three Obama females sported items made by the New York-based clothing company.       Michelle Obama waved to the crowds — and held the Lincoln Bible — wearing a pair of olive green gloves by J Crew, while daughters Malia and Sasha sported coats from the company’s kids’ line, Crewcuts, in periwinkle and “sweet guava,” i.e. pink.

It may have been the first time a U.S. First Lady wore J Crew in an official capacity, though Michelle Obama had already shown her affinity for the brand during Barack’s presidential campaign, opting for a yellow sweater and skirt ensemble during an appearance on “The Tonight Show with Jay Leno.”        J Crew was also the choice of the Obama family at the Kids’ Inaugural Concert on Monday that featured performances by Miley Cyrus and the Jonas Brothers. 

The J Crew website in the afternoon of the inauguration flashed a “Congratulations to the First Family” message with no other mention of the free advertising provided by the Obamas.

But don’t go searching the website today for anything you liked. Those of us searching to buy a piece of the inaugural glamour will just have to wait, said a J Crew spokeswoman.      The pieces worn by Michelle, Malia and Sasha were designed specifically for the events, and won’t be available to the rest of us until fall.

For a story on the First Lady’s inaugural outfit, designed by Isabel Toledo, click here.

(Photo: Reuters)