Drop in Online Customer Satisfaction Offers More Bad News for Retailers, According to ForeSee Results

Netflix, Amazon Still Tops While Apple, Nike, Williams-Sonoma, Neiman Marcus
Websites Lose Their Shine
ANN ARBOR, Mich.--(Business Wire)--
Amid conjecture that the worst days of the recession may be behind us, a new
report released today from ForeSee Results finds that customer satisfaction with
many of the largest online retailers is taking a dive. The decline threatens to
smother an online retail recovery just as the rest of the economy shows signs of
recovery. The annual Top 100 Online Retail Satisfaction Index from ForeSee
Results and FGI Research falls 3 percent since last year to an aggregate score
of 73 on the study`s 100-point scale.

The research, which employs the methodology of the University of Michigan`s
American Customer Satisfaction Index (ACSI), is based on surveys of over 22,000
visitors to the top 100 e-retail websites by sales volume, as reported in the
2009 Internet Retailer Top 500 Guide.

"Online retailers picked a bad time to drop the ball, and if they don`t shore up
customer satisfaction, things could get even more bleak," said study author
Larry Freed, president and CEO of ForeSee Results. "Revenue will tell you a lot
about past performance, and by that measure, things don`t look great. But
customer satisfaction will tell us a lot about what`s ahead, and more companies
are losing ground. That`s a real canary in a coal mine for future sales online
and offline, loyalty, retention, and return visits."

Online retail stalwarts Netflix (85) and Amazon (84) lead all e-retailers for a
fifth year in a row, showing that it is possible to succeed despite tough times.
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 improved 3%. A
full list of scores follows this release.

Only 16 of the top 100 e-retailers improved, while over half declined. Even
Apple.com got knocked from its throne, sliding nearly 6% to 75 and now trailing
Dell.com and HPShopping.com. Apple`s expansion into cell phones has been a boon
for the company, but it may be having trouble serving a different customer base
on its website. 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). An analysis of the factors that impact
customer satisfaction shows that consumers are more price-sensitive than in
previous years. Preceding reports of the Top 100 Online Retail Satisfaction
Index have 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," said Freed. "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."

The report compares desirable future behaviors of highly satisfied shoppers to
dissatisfied shoppers and finds that the former group is 71% more likely to
purchase online than the latter, and 72% more likely to recommend the website.
But satisfaction with the website has an impact with a shopper`s brand
experience and translates into a greater likelihood (44% more likely) to make a
purchase offline.

The Top 100 Online Retail Satisfaction Index report, including a score chart for
the top 100 websites, is available for free at www.ForeSeeResults.com.

WEBSITE Spring Spring Spring Spring Spring % %
2005 2006 2007 2008 2009 Change Change
Year- From
Over- First
Year Measure
Top 100 Aggregate -- -- 74 75 73 -2.7 % -1.4 %
Netflix.com 85 85 85 86 85 -1.2 % 0.0 %
Amazon.com 84 83 83 83 84 1.2 % 0.0 %
QVC.com 84 82 85 84 81 -3.6 % -3.6 %
DrsFosterSmith.com -- -- 81 81 81 0.0 % 0.0 %
Newegg.com 82 82 78 80 81 1.3 % -1.2 %
Avon.com 80 76 78 79 81 2.5 % 1.3 %
TigerDirect.com 81 78 79 78 79 1.3 % -2.5 %
Shutterfly.com -- -- 77 80 78 -2.5 % 1.3 %
LLBean.com 82 80 79 79 78 -1.3 % -4.9 %
HPShopping.com 77 74 76 79 78 -1.3 % 1.3 %
VictoriasSecret.com -- -- 77 76 78 2.6 % 1.3 %
BassPro.com -- -- 76 79 77 -2.5 % 1.3 %
Cabelas.com -- -- 78 78 77 -1.3 % -1.3 %
Drugstore.com 78 78 76 78 77 -1.3 % -1.3 %
VistaPrint.com -- -- 76 78 77 -1.3 % 1.3 %
MusiciansFriend.com -- -- 78 77 77 0.0 % -1.3 %
JCP.com (JC Penney) 77 76 76 77 77 0.0 % 0.0 %
Walmart.com 75 74 75 75 77 2.7 % 2.7 %
BN.com (Barnes and Noble) 80 78 82 79 76 -3.8 % -5.0 %
HSN.com 79 78 79 79 76 -3.8 % -3.8 %
OrientalTrading.com -- -- 78 79 76 -3.8 % -2.6 %
Zappos.com -- 78 79 78 76 -2.6 % -2.6 %
Dell.com 77 76 78 77 76 -1.3 % -1.3 %
DisneyDirect.com -- -- 75 76 76 0.0 % 1.3 %
Kohls.com -- -- -- 72 76 5.6 % 5.6 %
Apple.com 80 77 79 80 75 -6.3 % -6.3 %
MarketDay.com -- -- 79 79 75 -5.1 % -5.1 %
AmericanGirl.com -- -- 79 78 75 -3.8 % -5.1 %
ColdwaterCreek.com -- -- 74 77 75 -2.6 % 1.4 %
Walgreens.com -- -- 75 76 75 -1.3 % 0.0 %
HarryandDavid.com 80 -- 75 75 75 0.0 % -6.3 %
Target.com 74 73 76 73 75 2.7 % 1.4 %
REI.com -- -- 73 73 75 2.7 % 2.7 %
SwissColony.com -- -- -- -- 75 n/a n/a
WeightWatchers.com -- -- -- -- 75 n/a n/a
Crateandbarrel.com -- -- 73 77 74 -3.9 % 1.4 %
Nordstrom.com -- 77 73 75 74 -1.3 % -3.9 %
NorthernTool.com -- -- 74 75 74 -1.3 % 0.0 %
Quixtar.com 77 78 77 74 74 0.0 % -3.9 %
BestBuy.com 75 73 71 74 74 0.0 % -1.3 %
Scholastic.com -- -- 74 74 74 0.0 % 0.0 %
Chadwicks.com 73 78 73 72 74 2.8 % 1.4 %
Costco.com 70 71 72 72 74 2.8 % 5.7 %
Blair.com -- -- -- -- 74 n/a n/a
Williams-Sonoma.com -- -- 75 78 73 -6.4 % -2.7 %
Talbots.com -- -- 73 78 73 -6.4 % 0.0 %
AllPosters.com -- -- -- 77 73 -5.2 % -5.2 %
AAFES.com -- -- 75 75 73 -2.7 % -2.7 %
Staples.com 75 77 75 75 73 -2.7 % -2.7 %
SaksFifthAvenue.com -- -- 70 73 73 0.0 % 4.3 %
Peapod.com -- -- 73 71 73 2.8 % 0.0 %
Blockbuster.com -- -- 77 77 72 -6.5 % -6.5 %
EddieBauer.com 78 -- 73 76 72 -5.3 % -7.7 %
Spiegel.com -- -- 71 74 72 -2.7 % 1.4 %
AE.com -- -- 72 73 72 -1.4 % 0.0 %
Gap.com 78 73 72 72 72 0.0 % -7.7 %
OfficeDepot.com 75 75 74 72 72 0.0 % -4.0 %
Buy.com 71 71 71 72 72 0.0 % 1.4 %
Lowes.com -- -- 70 72 72 0.0 % 2.9 %
OfficeMax.com -- -- 71 71 72 1.4 % 1.4 %
TheCompanyStore.com -- -- -- 70 72 2.9 % 2.9 %
RalphLauren.com -- -- -- -- 72 n/a n/a
CVS.com -- -- 72 77 71 -7.8 % -1.4 %
ToysRUs.com 77 71 71 75 71 -5.3 % -7.8 %
Nike.com -- -- 73 75 71 -5.3 % -2.7 %
SonyStyle.com 74 69 70 74 71 -4.1 % -4.1 %
Macys.com 69 69 73 71 -2.7 % 2.9 %
Sears.com 74 73 72 72 71 -1.4 % -4.1 %
Fingerhut.com -- -- -- 71 71 0.0 % 0.0 %
NeimanMarcus.com 75 76 69 75 70 -6.7 % -6.7 %
Overstock.com 75 76 76 74 70 -5.4 % -6.7 %
FootLocker.com -- -- 72 73 70 -4.1 % -2.8 %
Abercrombie.com -- -- 70 73 70 -4.1 % 0.0 %
CDW.com 73 -- 70 72 70 -2.8 % -4.1 %
SmartBargains.com -- -- 71 72 70 -2.8 % -1.4 %
FTD.com 74 -- 71 71 70 -1.4 % -5.4 %
HomeDepot.com -- -- 69 69 70 1.4 % 1.4 %
Safeway.com -- -- -- -- 70 n/a n/a
Rhapsody.com -- -- -- -- 70 n/a n/a
1800Flowers.com 75 76 71 73 69 -5.5 % -8.0 %
ShopNBC.com -- -- 69 72 69 -4.2 % 0.0 %
JCrew.com -- -- 72 71 69 -2.8 % -4.2 %
RestorationHardware.com -- -- -- 71 69 -2.8 % -2.8 %
BlueNile.com -- -- 70 71 69 -2.8 % -1.4 %
eBags.com -- -- 75 72 68 -5.6 % -9.3 %
Bidz.com -- -- 70 69 68 -1.4 % -2.9 %
PCMall.com -- -- 67 67 68 1.5 % 1.5 %
NetShops.com -- -- -- -- 68 n/a n/a
Nutrisystem.com -- -- -- -- 68 n/a n/a
PCConnection.com -- -- 67 67 67 0.0 % 0.0 %
UrbanOutfitters.com -- -- -- -- 67 n/a n/a
Etronics.com -- -- 68 71 63 -11.3 % -7.4 %
MarketAmerica.com -- -- -- -- 63 n/a n/a
efollett.com -- -- 70 68 62 -8.8 % -11.4 %

About ForeSee Results

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 University of Michigan`s American Customer Satisfaction Index
(ACSI), ForeSee Results identifies the improvements to websites and other online
initiatives with the greatest ROI. With over 34 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 retail category, with over 85 retail measures in
ForeSee benchmarks.

ForeSee Results, a privately held company, is headquartered in Ann Arbor,
Michigan, has offices in London, Toronto, and Vancouver, and can be found online
at www.ForeSeeResults.com.

About FGI Research

FGI Research is a leading provider of market research and information solutions
that improve the speed, accuracy and impact of business decisions. By combining
proven research methods, trusted online sample, and advanced analytics and
communications, FGI delivers to end users and marketing research firms immediate
and actionable information to decision makers throughout their respective
enterprises. FGI offers a premier suite of online research solutions under the
SmartPanel family of specialty and proprietary custom research panels. For
additional information, visit www.fgiresearch.com.

ForeSee Results
Sarah Allen-Short, 301-518-2960
sarah.allen-short@foreseeresults.com
or
Kearns & West
Chaat Butsunturn, 415-391-7900 x114
cbutsunturn@kearnswest.com

Copyright Business Wire 2009