More price-sensitive shoppers are less satisfied online, new study shows

Consumer satisfaction with online retailers slipped in the first half of this year, driven by consumers’ focus on price, says the new Top 100 Online Retail Satisfaction Index from ForeSee Results and FGI Research, released today in conjunction with the upcoming publication of the new Internet Retailer Top 500 Guide.

Consumer satisfaction with the Top 100 online retailers fell 3% to 73 on a 100-point scale.

Netflix.com, No. 28 in the Internet Retailer Top 500 Guide, which scored 85, and Amazon.com, No. 1, which scored 84, lead all e-retailers for the fifth year in a row. The largest improvements go to Kohls.com (+6% year-over-year to 76), Costco (+3% since last year, and +6% since 2005), and eight other companies that improved 3%. Complete results are published in the new Top 500 Guide.

The research, which ForeSee conducts using the methodology of the University of Michigan’s American Customer Satisfaction Index, is based on surveys of over 22,000 visitors to the top 100 e-retail websites by sales volume.

Only 16 of the top 100 e-retailers improved, while over half declined.

Consumers are more price-sensitive than in previous years, ForeSee reports. The Top 100 Online Retail Satisfaction Index from previous years has shown that, despite being a perpetually low-scoring element, price has had a relatively low impact on overall satisfaction. However, the 2009 study reveals that although shoppers aren’t more dissatisfied than in previous years, price now matters more.

“This doesn’t mean companies should start slashing prices, but it does reflect the current mood of the consumer,” says Larry Freed, CEO of ForeSee, who is speaking at the Internet Retailer Conference & Exhibition, June 15-18 in Boston, in a session entitled The Top 500 Guide: What the Guide tells us about the market to come. “Online shoppers are a savvy group, able to compare price and merchandise at the click of a mouse. In an economy where rising unemployment, plummeting home values, and tight credit continue to make headlines, consumers are punishing retailers if they feel prices aren’t fair or competitive.”

ForeSee reports that even Apple.com, a perennial leader in customer satisfaction, suffered, sliding nearly 6% to 75 and now trailing Dell.com and HPShopping.com. ForeSee says that while Apple’s expansion into cell phones has been a boon for the company, the company may be having trouble serving a different customer base on its web site. Other notable declines include CVS.com (-8% to 71, trailing Walgreens and Drugstore.com), NeimanMarcus.com (-7% to 70) and Willams-Sonoma.com (-6.4% to 73).

ForeSee says that customer satisfaction is a leading indicator of an e-retailer’s success, showing where customers are likely to shop both online and offline in the future.

ForeSee ranks the Top 100 based on customer satisfaction, along with their change in score from a year ago:

• Top 100 Aggregate, 73, -2.7%
• Netflix.com, 85, -1.2%
• Amazon.com, 84, 1.2%
• QVC.com, 81, -3.6%
• DrsFosterSmith.com, 81, 0.0%
• Newegg.com, 81, 1.3%
• Avon.com, 81, 2.5%
• TigerDirect.com, 79, 1.3%
• Shutterfly.com, 78, -2.5%
• LLBean.com, 78, -1.3%
• HPShopping.com, 78, -1.3%
• VictoriasSecret.com, 78, 2.6%
• BassPro.com, 77, -2.5%
• Cabelas.com, 77, -1.3%
• Drugstore.com, 77, -1.3%
• VistaPrint.com, 77, -1.3%
• MusiciansFriend.com, 77, 0.0%
• JCP.com (JC Penney,) 77, 0.0%
• Walmart.com, 77, 2.7%
• BN.com (Barnes and Noble), 76, -3.8%
• HSN.com, 76, -3.8%
• OrientalTrading.com, 76, -3.8%
• Zappos.com, 76, -2.6%
• Dell.com, 76, -1.3%
• DisneyDirect.com, 76, 0.0%
• Kohls.com, 76, 5.6%
• Apple.com, 75, -6.3%
• MarketDay.com, 75, -5.1%
• AmericanGirl.com, 75, -3.8%
• ColdwaterCreek.com, 75, -2.6%
• Walgreens.com, 75, -1.3%
• HarryandDavid.com, 75, 0.0%
• Target.com, 75, 2.7%
• REI.com, 75, 2.7%
• SwissColony.com, 75, n/a
• WeightWatchers.com, 75, n/a
• Crateandbarrel.com, 74, -3.9%
• Nordstrom.com, 74, -1.3%
• NorthernTool.com, 74, -1.3%
• Quixtar.com, 74, 0.0%
• BestBuy.com, 74, 0.0%
• Scholastic.com, 74, 0.0%
• Chadwicks.com, 74, 2.8%
• Costco.com, 74, 2.8%
• Blair.com, 74, n/a
• Williams-Sonoma.com, 73, -6.4%
• Talbots.com, 73, -6.4%
• AllPosters.com, 73, -5.2%
• AAFES.com, 73, -2.7%
• Staples.com, 73, -2.7%
• SaksFifthAvenue.com, 73, 0.0%
• Peapod.com, 73, 2.8%
• Blockbuster.com, 72, -6.5%
• EddieBauer.com, 72, -5.3%
• Spiegel.com, 72, -2.7%
• AE.com, 72, -1.4%
• Gap.com, 72, 0.0%
• OfficeDepot.com, 72, 0.0%
• Buy.com, 72, 0.0%
• Lowes.com, 72, 0.0%
• OfficeMax.com, 72, 1.4%
• TheCompanyStore.com, 72, 2.9%
• RalphLauren.com, 72, n/a
• CVS.com, 71, -7.8%
• ToysRUs.com, 71, -5.3%
• Nike.com, 71, -5.3%
• SonyStyle.com, 71, -4.1%
• Macys.com, 71, -2.7%
• Sears.com, 71, -1.4%
• Fingerhut.com, 71, 0.0%
• NeimanMarcus.com, 70, -6.7%
• Overstock.com, 70, -5.4%
• FootLocker.com, 70, -4.1%
• Abercrombie.com, 70, -4.1%
• CDW.com, 70, -2.8%
• SmartBargains.com, 70, -2.8%
• FTD.com, 70, -1.4%
• HomeDepot.com, 70, 1.4%
• Safeway.com, 70, n/a
• Rhapsody.com, 70, n/a
• 1800Flowers.com, 69, -5.5%
• ShopNBC.com, 69, -4.2%
• JCrew.com, 69, -2.8%
• RestorationHardware.com, 69, -2.8%
• BlueNile.com, 69, -2.8%
• eBags.com, 68, -5.6%
• Bidz.com, 68, -1.4%
• PCMall.com, 68, 1.5%
• NetShops.com, 68, n/a
• Nutrisystem.com, 68, n/a
• PCConnection.com, 67, 0.0%
• UrbanOutfitters.com, 67, n/a
• Etronics.com, 63, -11.3%
• MarketAmerica.com, 63, n/a
• efollett.com, 62, -8.8%