In its second-largest acquisition, Amazon buys the company for $970 million.
Brands that meet consumer expectations yield higher levels of engagement and loyalty than those relying on the best products or coupons, says consulting firm Brand Keys, which conducted the study.
Amazon.com Inc., No. 1 in in the 2013 Internet Retailer Top 500 Guide, and eBay Inc. scored first and second, respectively, in a study of customer loyalty and engagement conducted by Brand Keys Inc. Overstock.com Inc. (No. 31), Zappos, a unit of Amazon, and Rakuten.com Shopping (No. 40 and formerly known as Buy.com) rounded out the top five in the online retailers category. Brand Keys is a New York City-based brand and customer loyalty research consulting firm.
“We’ve done a lot to make our shopping experience a positive one; from great prices to great customer service to a rich reward program,” says Overstock.com CEO Patrick Byrne. “We are pleased to be ranked in the top three.”
The Customer Loyalty Engagement Index also ranked online video providers in customer loyalty. Netflix Inc. (No. 9) and Amazon tied for first, and were followed by Apple Inc.’s iTunes (No. 3), and Hulu and YouTube, which also tied.
For the 2014 ranking, Brand Keys surveyed 32,000 consumers, 18 to 65 years of age, drawn from the nine U.S. Census regions. Respondents selected from among 64 categories those in which they are consumers, and the brands for which they are customers. 70% were interviewed by phone, 25% were interviewed face-to-face (to include cell phone-only households) and 5% participated online.
Other categories rated in the Brand Keys report are listed below.
3. Google Play
Online payment services
2. Google Wallet
3. Amazon Payments
5. We Pay
Apparel retail stores
1. Victoria’s Secret
3. Abercrombie & Fitch
4. Banana Republic/ Old Navy (tie)
5. T.J. Maxx