Tepid Rise in Customer Satisfaction Mimics Slow Pace of Economic Recovery

Winners include Amazon, Nordstrom, Publix and Costco, but Netflix and Walmart lose on customer satisfaction.

February 22, 2012

ANN ARBOR, Mich. - Customer satisfaction at the national level inches up 0.1% to 75.8 on a scale of 0 to 100 for the fourth quarter of 2011, according to a report released yesterday by the American Customer Satisfaction Index (ACSI). The Q4 gain brings the yearly change for 2011 up to 0.7%, a mild improvement that is in sync with a very slowly recovering U.S. economy.

"The good news is that customer satisfaction continues to climb, which has a positive effect on consumer demand and growth," said Claes Fornell, ACSI founder, in a press release. "Still, the ACSI improvement is tepid, and much of the fourth quarter gain comes from positive consumer reaction to lower gas prices. With gas prices already on the rise, customers obviously are going to be less pleased."

The fourth quarter 2011 national score is based on January results for government ?" which overall was nearly stable (+0.1% to 67.0) despite a gain for federal services ?" along with new scores released today for retail and e-commerce. In total, 44 companies are measured within eight industries: supermarkets; department & discount stores; specialty retail stores; health & personal care (drug) stores; gasoline service stations; and Internet retail, brokerage, and travel.

Supermarkets are up 1.3% overall to 76 despite a continued rise in food prices ?" now 6% higher than in 2010. Efforts to remodel stores and expand product selection seem to be paying off for this cost-sensitive industry. Publix remains the grocer to beat, continuing its customer satisfaction reign unchallenged at a stable and high score of 84. Whole Foods keeps trending upward following its first measure in 2007, although the gain for 2011 is small (+1%). The upscale grocer comes in second place at 80, showing a net gain of 10% over four years.

The supermarket business of Walmart does not fare well in comparison with the other chains. Dropping 3% to 69, Walmart lags the supermarket field by 5 points or more and remains dead last among all measured retailers. In the department & discount store industry, Walmart treads this same ground. With a 4% satisfaction hit, the world??s largest retailer is now alone in last place at 70 ?" 6 points below the industry average and the next-lowest chain (Sears at 76).

"Walmart??s relatively strong financial performance appears to be buoyed by overseas growth, while U.S. sales are mired in a two-year slump," said Fornell. "While shoppers remain price conscious, the problem for Walmart may be that the denominator in the money/value expression is seen as too weak by consumers and that competing retailers such as dollar stores or big-box specialty stores are viewed as viable alternatives offering low price in combination with more attractive product or service quality."

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