• by December 27, 2002

A study released last week by ForeSee Results shows that although more than half of online holiday shoppers were highly satisfied with their online experience this year, the still nascent e-retail industry earned an overall score of 69 out of a possible 100 points (or a grade of “C”), a strong message from consumers that retailers need to do more to keep them coming back throughout the year.

Although 69 is a respectable score, it is 8 points lower than the 2001 ACSI e-retail index (77). 10% of online shoppers were extremely unsatisfied with their online experience. Of those that are not satisfied, 2/3 do not plan to shop online next year.

However, there is some good news for retailers: according to the study, 59% of online shoppers said they were highly satisfied with their experience while 71% said they are very likely to do their holiday shopping online next year. In addition, 69% ercent said they were very likely to recommend the experience to others, and 63% of the surveyed online shoppers said they are very likely to shop online again within the next two months.

According to the study, holiday-time satisfaction levels also determine consumers’ future behaviors, and e-retailers that understand the components and drivers of customer satisfaction will be highly rewarded. Satisfied consumers are 50% more likely to make online purchases again within two months, which gives the e-retail industry a powerful incentive to improve satisfaction and thereby ensure that business keeps coming their way throughout the year.

“The 10% of online shoppers that were extremely unsatisfied with their online experience this year presents the industry with a classic opportunity,” said Larry Freed, a web effectiveness and satisfaction expert who is CEO of ForeSee Results. “E-retailers can improve a few key elements--product browsing and ordering capability--and the 2003 holiday season is theirs for the taking.”

“In a soft economy, retail websites are going to have to work a lot harder to satisfy shoppers and convert positive experiences into online and offline sales,” Freed continued. “They need to understand how satisfied their customers are, and how users’ online experience today will impact what they do on e-commerce sites and stores in the future. Satisfying customers is the critical success factor for future online retailing success.”