While the retail industry has been hyperfocused on
pricing, the retailers who have continued to
focus on customer satisfaction, like Amazon and Apple,
have emerged as the winners in a losing holiday
season.
The link between customer satisfaction and sales is not breaking news. The confirmation that overall customer satisfaction still matters in a price-conscious economy is definitely headline worthy. According to the "2008 Holiday Top 40 Online Retail Satisfaction Index" report from Foresee Results, the most satisfied customers still spend more, make more repeat purchases, and make recommendations to friends.
Proving that theory, Amazon.com reported its best holiday season ever, with a 44% increase in units shipped, a 7% increase in web visitors, and 6.3 million items ordered in a single day. Coincidentally, or not, Amazon.com also had the highest customer satisfaction scores in the first half of December. When rating Amazon based on the merchandise available, the functionality of the website, the product information and descriptions, and the prices charged, Amazon customers awarded a score of 84 out of a possible 100. Amazon shoppers were happy with Amazon experience, and they made Amazon purchases in record numbers.
Some will argue that Amazon's 2008 holiday season success was really only motivated by price, but the numbers from liquidation e-tailer Overstock.com refute that argument. More...
The link between customer satisfaction and sales is not breaking news. The confirmation that overall customer satisfaction still matters in a price-conscious economy is definitely headline worthy. According to the "2008 Holiday Top 40 Online Retail Satisfaction Index" report from Foresee Results, the most satisfied customers still spend more, make more repeat purchases, and make recommendations to friends.
Proving that theory, Amazon.com reported its best holiday season ever, with a 44% increase in units shipped, a 7% increase in web visitors, and 6.3 million items ordered in a single day. Coincidentally, or not, Amazon.com also had the highest customer satisfaction scores in the first half of December. When rating Amazon based on the merchandise available, the functionality of the website, the product information and descriptions, and the prices charged, Amazon customers awarded a score of 84 out of a possible 100. Amazon shoppers were happy with Amazon experience, and they made Amazon purchases in record numbers.
Some will argue that Amazon's 2008 holiday season success was really only motivated by price, but the numbers from liquidation e-tailer Overstock.com refute that argument. More...
Comments
It is our love, dedication, worship and admiration of Dr. Patrick Byrne, not some unimportant sales figure of some returned or discontinued goods, that we take to the bank! You may judge Overstock by it’s sales or lack of profits: we judge the company based on Dr. Byrnes relentless pursuit of evil doers in the World Market Places. If Overstock never sell another item, ever … I would care little. Most, if not all of his devotes, can not afford to own stock in this corporation. We are more focused, as is Dr. Byrne, on tracking and exposing a mysterious Hedge Fund led cabal that is intent on wiping out our Free Markets. If Dr. Byrne has chosen to sacrifice his retail venture to save our economy, then that is a price you will have to pay in owning his stock. I think he is a noble man who should be given the job of Commissioner of the SEC in the new administration. While he might not survive the background check, he is a better man then any of the ‘captured’ idiots running any of the so called ‘profitable’ companies like Amazon or Ebay.
Price is not the motivator but the experience and the connection the retailer makes with the consumer.
You will never be the cheapest when selling me to products which I advocate that businesses find niches and go deep within them and make the experience something beyond the ordinary.
2009 will be a year of retail close outs and inventory will be going out the door at a discount but we all loose a little piece of “Yes We Can” when that happens and that’s sad.
I couldn’t agree more about pricing. Focus on customer relationships and their experience in your store is more important than focusing on price.
We’ve always suggested methods such as e-newsletters, direct mail, special events and more builds bridges to your front door, then the rest is dependent on how relevant your products are to fullfilling emotional and practical needs.
When you go to Starbucks, Apple Computer Stores, Disney World, it’s not the price, it’s the experience and they know how to market without being pushy.
Now, the biggest question is how many stores will close their doors in 2009 not because they couln’t compete but because they would not change?
Yes, i agree the smart retailers always to be the winner. they know how to attack the market and do for ajustment and grab the big money. the Crisis sometimes making the other have the opportunity.