The ForeSee Experience Index (FXI): 2013 UK Retail Edition Now Available
The UK is arguably emerging as the number-one internet shopping nation in the world. An October 2013 Eurostat Commission study found that 82% of the country’s internet users regularly shop online, the highest proportion among all 28 member states. At the same time, the rapid take-off of online food and grocery shopping in the UK has reportedly moved it ahead of the US overall, according to Mail Online.
This makes it especially disturbing to see a fall in satisfaction levels among UK online shoppers in this year’s report (down from an aggregate score of 74 in 2012 to 73 this time). But it is perhaps even more worrying that only two retailers (5% of the measured list) break through the 80-point barrier that indicates customer experience excellence by ForeSee Standards. By contrast, around one-third of the largest retailers in the U.S. typically score 80 or above.
This is particularly significant because of the powerful and quantifiable relationship between a positive customer experience and increased loyalty, sales and recommendations. In fact, the predictive capabilities of the ForeSee CXA methodology that underlie this report show that, based on likelihood scores, highly satisfied visitors to retail websites in the UK are:
- 61% more committed to the brand
- 63% more likely to buy from the retailer online
- 51% more likely to purchase from them offline
- 70% more likely to recommend the retailer
- 61% more likely to purchase from them next time
- 52% more likely to return to the site
Other highlights from the FXI report include:
- The Leaders: With a score of 80 or above generally considered the threshold of excellence, Amazon continues to dominate the top of the leader board. However, neither its US or UK site has shown any improvement in score (amazon.com maintained its 2012 score of 84) and amazon.co.uk actually fell by two points on last year’s score (of 86) to equal its US counterpart’s score. Dropping out of the group of retailers that surpass the excellent threshold of 80, John Lewis fell by a point to 79, but managed to hold on to its third place position in the Index. Apple (with 78 points), Marks & Spencer (with 77) and ASDA Direct (with 76) also appear at the top of the Index.
- The Fallers: Ryanair continues to bottom out the Index and by a significant margin – it rests a full eight points behind the three next-worst performers. With a score of 60 (down one point from 2012) the airline is clearly continuing to frustrate its customers and this will continue to impact its bottom line into 2014.
- The Most Improved: This year’s largest increases went to Netflix (up three points to 71) and Ikea (also up three points – to a score of 76). Given that, on average, a one-point satisfaction increase is likely to lead to a 10.6% increase in revenues generated on the web, these increases could translate to significant business value for these companies.
- Mind the (Satisfaction) Gap: Currently, there is a notable 24-point gap between the highest-scoring e-retailer (Amazon UK 84) and the lowest (Ryanair, 60), a broad range for a seemingly sophisticated industry. Moreover, with average satisfaction for the top 40 e-retailers slipping from 74 to 73 and just 21 of the measured companies surpassing that average, it appears that a lot of work needs doing in 2014 to satisfy customers more effectively.
Download the full (and free) report now and find out why satisfaction matters and how to correctly measure the customer experience to get the greatest return on investment.