This is hardly a surprise. Amazon.com distanced itself from Netflix in the ForeSee Holiday E-Retail Satisfaction Index, an annual study that measures customer satisfaction.

According to the report, Amazon scored 88 points — the highest score in the past 14 studies. (A score of 80 is considered excellent). It was followed by Avon, JC Penney, QVC and Apple.

Netflix, meanwhile, lost seven points as the online video rental company dealt with angry customers who were upset over price increases and a failed plan to spin on the mail order DVD business. Scores dropped in every category that ForeSee measures, including site content, site functionality, merchandise, and prices.

“Netflix totally misread its customer base and is paying the price, damaging its brand among both consumers and investors,” said Larry Freed, president and CEO of ForeSee. “Raising prices by 60% and splitting the baby into separate DVD and streaming services totally undermines Netflix’s cost and convenience advantages. Customer satisfaction is predictive, which means that Netflix’s financial woes may be just beginning.”

In addition to Netflix, the Gap and Overstock.com also saw big drops in customer satisfaction.

Here’s a look at the overall chart.

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Comments

  • http://www.intrinsicstrategy.com FrankCatalano

    Interesting that BestBuy.com showed an increase in customer satisfaction, considering its very public last-minute cancellation of many online holiday orders. I wonder if that’s a flaw in either the methodology or the timing of the survey.

    • johnhcook

      Good point Frank. That snafu came out pretty close to the Xmas holiday, so maybe it didn’t get accounted for here.

  • Guest

    Congratulations to Amazon on winning once again! This shows the power of caring for one’s customers.

  • Bill Schrier

    Also interesting that Sears rated so high, given their announcement yesterday about store closings.  Maybe they are emphasize the online/Internet business and planning to de-emphasize bricks-and-mortar.   Good post John, thanks.

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