Netflix Tops Amazon in Online Retail Survey, Again

11 May, 2009 By: Erik Gruenwedel

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Netflix Inc. ranked No. 1 among the Top 100 online retailers for customer satisfaction for the fifth consecutive year — again besting perennial runner-up Amazon.com, according to a new survey released by ForeSee Results.

The Ann Arbor, Mich.-based research firm, in its spring 2009 consumer survey culled from 22,000 respondents, said Los Gatos, Calif.-based Netflix tallied 85 points (out of a possible 100) to best Amazon with 84 points, cosmetics supplier Avon.com (81 points), pet supply site DrsFosterSmith.com (81), computer parts retailer Newegg.com (81) and online shopping platform QVC.com with 81 points.

The report said that a single point in customer satisfaction could influence as much as 9% of an online retailer’s year-over-year sales.

“Our research shows that a highly satisfied online shopper is 71% more likely to purchase online from a retailer than a dissatisfied online shopper,” said the report.

FGI said that satisfied online visitors are also 44% more likely to purchase offline at the retailer’s brick-and-mortar location, and 72% more likely to recommend the brand.

Netflix, which continues to entice strong subscriber growth with its included streaming service, recently incorporated Saturday shipments into claims that it virtually guarantees 24-hour delivery of movie rentals to most parts of the country.

Larry Freed, president and CEO of ForeSee Results, said that while Netflix has done a good job adapting to changing technology, including streaming, the site benefits from a customer base that already subscribes on a monthly basis.

“They have already made the purchase, so to speak,” Freed said. “There is not the ‘pain of price commitment’ you might have at Target or Best Buy.”

Indeed, Netflix scored one point below its No. 1 spring 2008 tally but still was superior to numerous national brands, including LLBean.com with 78 points, Drugstore.com (77), Walmart.com (77), BarnesNobel.com (76), Dell.com (76), DisneyDirect.com (76), HomeShoppingNetwork.com (76), Kohls.com (76), Apple.com (75), Target.com (75), and REI.com with 75 points.

Freed said Netflix’s adoption of streaming as a free value-add to subscribers establishes it as an electronic distributor down the road.

“Overall, they do a good job delivering what they say they are going to deliver,” he said.

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