ForeSee Survey: Apple, Newegg and H-P Lead in Online Satisfaction

by , 3:40 PM EDT, May 15th, 2008

In the ForeSee Results Top 100 Online Retail Satisfaction Index published today, Apple, Newegg and HP provided the best online experience of the electronics e-retailers.

A copy of the report was obtained by TMO.

"The Web continues to be a bright spot in retail, which is good news for retailers and even better news for consumers," said Larry Freed, president and CEO of ForeSee Results "When competition for limited consumer dollars is fierce, as it is now in a weak economy, retailers are searching for ways to convert browsers to buyers. Providing a satisfying website experience is the first place to start."

Mr. Freed added that their research shows that electronics retailers can realize significant gains in loyalty and sales by focusing on free shipping, product reviews, and brand alignment with the offline channel.

The key findings of the reported included:

• Apple, Newegg, and HP provide the most satisfying online experience in the category.
• Online satisfaction drives loyalty, sales and word of mouth. Highly satisfied online computer and electronics shoppers are 69% more likely to purchase from the company the next time they’re in the market for similar merchandise, 43% more likely to purchase offline, 70% more likely to purchase online and 71% more likely to recommend the retailer than are dissatisfied shoppers.
• Computer and electronics e-retailers should focus on online branding and site experience in order to increase customer satisfaction, loyalty and purchase intent.
• Compared to other product categories, the category of computers and electronics delivers below average customer satisfaction. [Companies that sell Books/CDs/DVDs online were rated highest.]

Source: Foresee Results. All scores on a 100 point scale.

The report noted that "Thirteen points separate category leaders Apple and Newegg from laggards PCConnection.com and PCMall.com, whose scores of 67 put them at the bottom of the computer and electronics category and of the entire index for the second tear in a row."

SonyStyle had the largest year-over-year increase, up 6 percent from 70 to 74. In fact, "Every measured computer or electronics e-retailer either maintained or increased its score except for Dell and Tiger Direct. Both fell 1.3%."

The report concluded that "free shipping can be a valuable and effective competitive differentiator for computer and electronics websites." In addition, online customer reviews play a strong role in influencing customer purchase decisions.