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Customer Satisfaction on Cyber Monday Up Slightly From Last Year, According to Study by ForeSee Results

ANN ARBOR, MI (November 28, 2007) Cyber Monday shoppers were more satisfied with their online experience in 2007 than they were in 2006, according to a new study from leading online customer satisfaction measurement firm ForeSee Results. Satisfaction was slightly lower on Cyber Monday than it was over the holiday weekend and earlier in the month, but e-retailers are showing an increased ability to use their website to influence multichannel sales.

“The increase in customer satisfaction year-over-year on Cyber Monday bodes well both for sales during the holiday season and during the rest of the year, because satisfaction is a proven predictor of sales, financial performance, and word of mouth recommendations,” said Larry Freed, President and CEO of ForeSee Results. “Online retailers seem to be figuring out how to maximize the value of the increased traffic they see during the holidays, starting with Cyber Monday.”

SURVEY RESULTS:

1. Cyber Monday shoppers were more satisfied in 2007 than on the same day in previous years. In 2007, Cyber Monday customer satisfaction was up 1.3% or one point from satisfaction levels in 2006 (score of 76.6 vs. 75.6 on our 100-point scale). 

“E-retailers are doing a better job every year preparing their sites to handle the incredibly high volumes of traffic they see on Cyber Monday. We see higher scores with issues like functionality and site performance than we have in previous years,” said Freed. “In addition, certain promotions, like free-shipping and two-day sales, have become a lot more common and sophisticated than they were last year, which seems to be paying off.”

2. Satisfaction on Cyber Monday itself was slightly lower than it was over the holiday weekend, but the dip wasn’t as great as in past years. The small drop in satisfaction can be attributed to two main causes:

    • Strain on systems due to volume: even though retailers handled this better than ever this year, early estimates indicate record numbers of shoppers on Cyber Monday, which is always a challenge.
    • More first-time and infrequent shoppers: Cyber Monday promotions and advertising bring many new and infrequent visitors who are likely to be less satisfied with their online shopping experience as a result of unfamiliarity with the site.

3. Retailers are finally figuring out how to integrate the web into an effective multichannnel strategy. One of the unique attributes of the customer satisfaction methodology used to conduct this research is its proven ability to predict future behaviors based on overall satisfaction scores.

For the first time since ForeSee Results started producing a holiday benchmark in 2004, online shoppers were more likely to buy both online and offline on Cyber Monday and in the weeks leading up to it. This fact shows that retailers have figured out how to use their websites to increase the likelihood that people will shop via multiple channels, rather than just on the website.

“In past years, we’ve seen a much less integrated multichannel strategy; shoppers were likely to either buy online or offline, but not both,” said Freed. “This year, we see that retailers have figured out a way to use the online visit to drive sales both online and offline, which really maximizes the value of the website for a multichannel retailer.”

METHODOLOGY

The Cyber Monday survey, the first in a weekly holiday benchmark, was done using the methodology of the University of Michigan’s American Satisfaction Index (ACSI), which has been proven to be predictive of future sales (online and offline), word of mouth, and financial performance. Data was collected from more than 38,000 visitors to more than 40 online retailers (between Friday, 11/23/07 and Cyber Monday, 11/26/07), including AT&T Wireless; Bed, Bath & Beyond; Best Buy; Cabela’s; Danskin; Helzberg Diamonds; Panasonic; Sephora; Toys R Us, and other top Fortune 500 retailers.

For more information on the results of the 2007 Cyber Monday Survey, please contact Chaat Bustunturn (415-391-7900, x114; cbutsunturn@kearnswest.com) or Courtney Jenkins (202-821-2120; cjenkins@kearnswest.com)

About ForeSee Results

ForeSee Results is the market leader in using online voice-of-customer data to help companies increase sales, loyalty, recommendations, and website value. Using the methodology of the University of Michigan’s American Customer Satisfaction Index (ACSI), ForeSee Results identifies which improvements and enhancements to online marketing initiatives will have the greatest ROI. With over a quarter of a billion completed customer surveys to date, more than 30 benchmarks, and nearly 600 online measures across dozens of industries, ForeSee Results’ retail clients include Ace Hardware, Cabela’s, Chef’s Catalog, Danskin, Eastern Mountain Sports, Finish Line, and the NHL, among many others. ForeSee Results, a privately held company, is located in Ann Arbor, Michigan and on the web at www.ForeSeeResults.com.