Dive Brief:
- Customer satisfaction with online retailers remained stable over the past year despite economic turbulence, according to an American Customer Satisfaction Index study released Tuesday. Customer satisfaction was flat, scoring 79 on a 100-point scale, based on more than 31,293 consumer surveys.
- Three retailers shared the highest overall customer satisfaction of 82: Nordstrom, whose score jumped 5% since last year; Amazon, which fell 1%; and Chewy, which dropped 4%.
- The overall customer satisfaction scores for general merchandise and specialty retailers each climbed 1% from last year to 79 and 80.
Dive Insight:
Customers are becoming more disciplined and value-focused, which is increasing the importance of price and experience, according to the ACSI.
Customers aren’t necessarily spending less, but rather spending differently, according to Forrest Morgeson, associate professor of marketing at Michigan State University and director of research emeritus at the ACSI.
Customers started their holiday shopping earlier, and avoided last-minute splurges and started trading down to stretch their dollars, Morgeson said in a prepared statement. “Together, these shifts are tightening the field between retail winners and laggards and rewarding brands that deliver clear value and a smooth experience online and in store.”
Digital experiences are generally growing more positive. Mobile app quality was up 1% to 88, while reliability rose 2% to 87, the survey found. Scores for the usefulness of product images and descriptions were up as well.
AI may have helped some brands improve their customer satisfaction. Walmart’s score rose 3% to 77 as it invested in AI to enhance the experience, according to ACSI. The Sparky AI assistant and Walmart’s OpenAI partnership, which lets customers browse and buy the products directly through ChatGPT, may have contributed to the score.
Walmart’s AI investments have continued into this year, including a partnership with Google launched earlier this month that will let Gemini users to discover Walmart and Sam’s Club merchandise when conducting research.
AI features didn’t guarantee higher satisfaction, however. Home Depot and Lowe’s introduced AI-powered features as well, but Home Depot’s score fell 5% to 75 while Lowe’s score declined 3% to 74. Increased prices could be lowering their value propositions, ACSI said.
“AI can enhance the online shopper’s experience, but it needs to serve the fundamental drivers like product and service quality and value,” Morgeson said in an email. “Retailers that find ways to leverage AI in a way that reduces prices through operational efficiencies or improves the timeliness/convenience of returns or exchanges stand to gain the most in terms of satisfaction and customer loyalty.”
