Customer Satisfaction Drives Sales and Loyalty for Top U.S. Retail Companies

Low Discount Prices Don't Guarantee Success During the Retail Recession

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.