Online Satisfaction Is $ In Your Company’s Pocket

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This week Target announced that they will now be price matching,,, and’s prices all year-long – not just during the holiday season.  Talk about competitive edge.  “Showrooming” is just one of the latest ways for retailers to make sure that THEY are the ones you spend your money with.  But it doesn’t stop there.

Now that over 39% of all holiday shopping is done online – and the percentage is ever-growing – customer satisfaction is a big tell on how successful a company might be.  FORESEE recognizes this correlation, and has been indexing customer satisfaction since 2005.

Here is my “Spark Notes” version of the Holiday 2012 Index:

What is “Satisfaction Score”?

The “E-Retailer Satisfaction Index” is an analysis of customer satisfaction with 100 of the largest online retailers by sales volume (according to Internet Retailer).  The Index measures the satisfaction of online retail experience during the holiday season by “Satisfaction Scores” – which are extrapolated from 24,000 customer surveys between Thanksgiving and Christmas.

The indicators of customer satisfaction with a retail website are:
– Increased revenues
– Loyalty to the site
– Likely to recommend the retailer to others

And findings show that satisfied customers are:
– 65% more committed to the brand
– 69% more likely to recommend the retailer
– 67% more likely to purchase from the retailer the next time

Naughty vs. Nice Numbers

The U.S. Holiday Edition 2012 Satisfaction Index comes in at an average Satisfaction Score of 78 (on a 100-point scale) – with Amazon scoring the highest (for the second consecutive year) at a score of 88, and scoring 72.  This is a large gap considering that FORESEE estimates every one-point change on the Satisfaction Scale is a 14% change in the log of revenues generated – WOW!

Below are the FORESEE standout retailers based on Satisfaction Score.
Keep an eye out for companies in blue – they are AppDynamics customers!

1. Best of the Best Award (Criteria: Top Score)
– Amazon (See Graph Below)

2. Leaders Award (Criteria: Score ≥ 80)
Screen Shot 2013-01-03 at 4.24.13 PM



















It is awesome to have 4 AppDynamics customers as top satisfaction performers!
Netflix has been a leader 7 out of the 8 years that FORESEE has been indexing Satisfaction Scores.

3. Most Improved Since Last Year Award (Criteria: Increase of 3 points or more)

Screen Shot 2013-01-03 at 2.48.30 PM








Besides making the Most Improved Since Last Year list, Overstock has been able to
achieve speedy mean time to resolution, from days or hours down to minutes,
when solving problems in their production environment by using AppDynamics.
See more achievements on video here.

4.  Most Improved Over Time Award (Criteria: Significant Increase over 5 years)

Screen Shot 2013-01-03 at 2.55.19 PM














Congratulations to Staples for making the Most Improved Over Time list! It’s great to see
another AppDynamics customer killing it against other big names in retail.

 “Largest Declines Over Time” (Criteria: Significant Decreases over 5 years)
Screen Shot 2013-01-03 at 2.57.42 PM






So What Does This All Mean?

Screen Shot 2013-01-03 at 3.56.03 PMThe explanations of these findings lie in the retailers’ ability to understand the customers’ expectations.  In a nutshell, if they deliver and exceed customer expectations in online merchandise, functionality, prices, & content, then the retailer satisfaction score will be high.  “Only when they understand this can they begin to prioritize the site enhancements and make business decisions that can generate the greatest return on their investment,” explains the article.  Meeting expectations satisfies the customer – and therefore makes you money.

In this day-in-age, agile releases are the way to differentiate your site and keep up on the competition.  Have you stopped to think, are my agile releases satisfactory for my customer?  (And if you really want to differentiate your site, have you asked, are my agile releases going to exceed my customers’ expectations?)  Moving forward with this in mind will increase your site’s revenues, boost site loyalty, and users will more likely recommend your site to others – who doesn’t want that?!

Don’t be like – falling guilty of not prioritizing the customer.  Build to please, and that will surely make you money.

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See the full Holiday 2012 Edition of FORSEE’s E-Retailer Satisfaction Index here.

*All graphs and facts come from FORESEE E-Retail Satisfaction Index (U.S. Holiday Edition 2012)

Hannah Current

Hannah Current

Hannah Current is the Customer Marketing Manager at AppDynamics. After graduating from Santa Clara University, she joined AppDynamics in 2012. Her goal is to visit 50 countries before her 50th birthday (currently at 26 countries and counting). Reach out to her on Twitter at @HannahHaleyC