Online Brokerage Surges with the Market; E-Retail and Online Travel Sites Also Make Gains
ANN ARBOR, Mich.--(BUSINESS WIRE)--Customer satisfaction with e-commerce websites stages a comeback a year after suffering its first decline since 2004, according to the American Customer Satisfaction Index (ACSI). The e-commerce sector gains 1.8% to 81.4 on ACSI’s 100-point scale, nearly matching its all-time high of 81.6 set in 2007. The annual ACSI e-commerce report measures customer satisfaction with online retail, online brokerage, and online travel companies.
The increase in the overall e-commerce sector (made up of the e-retail, online brokerage, and online travel industries) is clearly driven by the rebounding online brokerage industry, which surges 5% to 78 after it lost 6% last year amid a crashing stock market. But e-retail (+1% to 83) and Internet travel (+3% to 77) also improves over last year.
“It’s no surprise that satisfaction with online brokerages is linked to the stock market. When the market crashes, customers aren’t happy. When it recovers, they feel better about their experience,” said Claes Fornell, ACSI founder, professor at the University of Michigan, and author of The Satisfied Customer. “But the improvements in e-retail and online travel are a good sign that consumers may be ready to spend again, if they can find the means to do so.”
Today’s report marks the tenth anniversary of the inclusion of online businesses in the ACSI. E-Commerce as a sector has improved more than 8 % since it was first measured by ACSI in 2000.
“Ten years in internet commerce is a lifetime,” said Larry Freed, president and CEO of ForeSee Results. “The fast pace allows companies to succeed or fail much faster than was ever the case thirty years ago. The business advancements made in just ten years are incredible, and some of these companies have become models of innovation and strategy for organizations across all channels.”
Online Brokerage
The online financial services industry improves more than any other, and the biggest gainers are the smaller companies that dropped the most in the depths of the recession. Fidelity, despite a small drop in score, continues to lead the sector (-1% to 79) along with Charles Schwab (+1% to 79). The uptick in the industry overall is largely attributable to huge gains by E*Trade (+7% to 74) and TD Ameritrade (+7% to 76).
Online Retail
E-retail rises 1% to 83 and continues to be the highest scoring industry in the e-commerce sector. Additionally, satisfaction with online retail far exceeds satisfaction with brick and mortar retail (76). E-retail is the only industry in the e-commerce sector to score above 80, which is considered the threshold for excellence for the Index. Netflix (+2% to 87) leads the Index for the first time, with Newegg (-2% to 86) and Amazon.com (stable at 86) closely following.
“The dramatic increase in satisfaction with the e-retail industry over the last ten years has been driven largely by the success of pure-play e-retailers” said Kevin Ertell, Vice President of Retail Strategy at ForeSee Results. “The retailers who are only selling online have, for the most part, paid better attention to customer needs and expectations and have worked to create a better online software experience for their customers.”
Online Travel
Customer satisfaction with online travel increases for the first time in five years, matching its all-time high of 77.
Expedia (+3% to 79) remains the top-scorer of the sector. Of the companies rated, Priceline.com experiences the biggest gain, increasing 7% to 76. Over the past few years, the company has moved away from their “Name Your Own Price” auction bid approach to booking travel reservations along the lines of conventional, full-service online travel agencies. Additionally, the company launched a top-rated mobile application allowing users to research and book hotels on the go.
A free report with ten years of historical scores for all of the e-commerce companies measured by the ACSI is available at www.ForeSeeResults.com.
| Overall E-Commerce Aggregate | 81.4 | |
| E-Retail Aggregate | 83 | |
| Netflix | 87 | |
| Newegg | 86 | |
| Amazon.com, Inc. | 86 | |
| All Others | 83 | |
| Overstock.com | 82 | |
| eBay Inc. | 79 | |
| E-Brokerage Aggregate | 78 | |
| Fidelity | 79 | |
| The Charles Schwab Corporation | 79 | |
| All Others | 78 | |
| TD Ameritrade | 76 | |
| E*TRADE Financial Corporation | 74 | |
| Online Travel Aggregate | 77 | |
| Expedia, Inc. | 79 | |
| All Others | 78 | |
| Orbitz, LLC | 76 | |
| Priceline.com Incorporated | 76 | |
| Travelocity.com L.P. | 75 | |
As the leader in online customer satisfaction measurement, ForeSee Results captures and analyzes online voice of customer data to help organizations increase sales, loyalty, recommendations and website value. Using the methodology of the American Customer Satisfaction Index (ACSI), ForeSee Results identifies the improvements to websites and other online initiatives with the greatest ROI. With more than 44 million survey responses collected to date and benchmarks across dozens of industries, ForeSee Results offers unparalleled expertise in customer satisfaction measurement and management particularly in the e-retail category, with more than 140 retail measures in ForeSee Results benchmarks.
ForeSee Results, a privately held company, is headquartered in Ann Arbor, Michigan; has offices in London and Toronto; and can be found online at www.ForeSeeResults.com.
About the ACSI
The American Customer Satisfaction Index is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in the United States. It is updated each quarter with new measures for different sectors of the economy replacing data from the prior year. The overall ACSI score for a given quarter factors in scores from more than 200 companies in 44 industries and from government agencies over the previous four quarters. The Index was founded at the University of Michigan's Ross School of Business and is produced by ACSI, LLC.
