Netflix, Blockbuster Rank Among Top E-Commerce Sites3 Jan, 2011 By: Erik Gruenwedel
Home entertainment heavyweights Netflix and Blockbuster both ranked among the top 40 e-commerce websites through the winter holidays, according to a recent study.
Netflix, which was one of the dominant news makers in 2010, was rated on par with Amazon among consumers as the best e-commerce sites, according to Ann Arbor, Mich.-based research firm ForeSee Results.
Netflix generated 86% approval among respondents, which bested online efforts from QVC (84%), LL Bean (83%), and Apple (82%), among others. Blockbuster.com generated 76% approval rating.
ForeSee said shoppers are 61% more likely to purchase online (35% more likely offline) from a retailer with a customer satisfaction ranking of 80% or higher.
While video rental is not typically associated with holiday retail, Blockbuster and Netflix represent two of the highest revenue e-commerce websites, according to ForeSee.
The company said Netflix beat Blockbuster in price and website functionality, with Blockbuster reportedly more interested in functionality than price in the near-term. Netflix outscored Blockbuster by 11 points (86 to 75) in price and functionality.
Both sites register website functionality as a top priority for improvement, but Netflix’s functionality score (86) was higher than Blockbuster’s (79), suggesting that while both need to improve functionality, Blockbuster has more to improve upon than does Netflix.
Indeed, ForeSee said 85% of consumers have brand loyalty to Netflix, compared with 73% for Blockbuster. More than 91% of consumers said they would return to Netflix, compared with 80% for Blockbuster.
About 87% of respondents said they would purchase again from Netflix, compared with 73% with Blockbuster; 67% said they would purchase again from Blockbuster stores. Respondents were more likely (89%) to recommend Netflix to friends and family than Blockbuster (76%). Likelihood to purchase in the future was also higher for Netflix (86%) compared with Blockbuster (68%).
Overall, respondents gave Netflix an 87% satisfaction rating, compared with 78% satisfaction rating for Blockbuster.