Tag: ForeSee Results

Social Media Has Little Impact On Website Traffic

Social media has little direct impact on most website traffic, according to a new report released today from ForeSee Results.

Less than 1 percent of website visits, on average, come directly from a social media URL. The findings indicate that the direct impact of social media is minimal, but also that the true value of social media cannot be measured only by examining the traffic coming directly from a social media URL.

While only 1% of site visitors come from a social media URL, 18% of site visitors report being influenced by social media to visit a website. These numbers represent benchmark averages; individual companies show a wide range of direct and indirect influence.

“What this tells us is that traditional clickstream metrics don’t give us a full picture of what value social media efforts are bringing to our business,” said Larry Freed, President and CEO of ForeSee Results.

“Companies have long been able to count how many Facebook fans, how many Tweets, and how many people click through ads on social sites, but they haven’t had a way to calculate a tangible return on investment for social media efforts, not to mention other marketing initiatives. Now they can.”

By linking which visitors were influenced by social media with how much those visitors spent, companies are able to measure the direct impact of their social media marketing efforts on revenue and goes beyond traditional social media metrics such as referring URLs or counts of tweets and Facebook followers.

“The benchmark gives our clients a way to see whether their visitors are more or less influenced by social media than the average, which can provide a fresh perspective on directing social media investments,” said Freed.

The Social Media Value Benchmark also shows that people who are influenced by social media have a higher average order size, have higher customer satisfaction, and have higher loyalty than those who aren’t influenced by social media.

April 13, 2011
Amazon And Netflix Tops In Customer Satisfaction

Customer satisfaction with ecommerce websites is down 2.6 percent to 79.3 on a 100-point scale, it lowest score since 2004, according to a new report from The American customer satisfaction Index (ACSI) and ForeSee Results.

“Satisfaction with e-commerce and retail is off from a year ago overall, but the individual company results are mixed, and some organizations manage to find ways and resources to improve the customer experience,” said ACSI Founder Claes Fornell, professor at the University of Michigan’s Ross School of Business.

“Still, any downward pressure on satisfaction does not bode well for sustained spending growth at a time when the economy could use it.”

Online retail fell 3.6 percent to 80, as customer satisfaction with smaller e-retailers dropped significantly. Some of the well known names in ecommerce continue to do well. Amazon (+1% to 87) and Netflix (-1% to 86) switch places at the top of the industry, and eBay gains 3% to 81. Amazon may have had smaller profits than predicted, but it grew its market share and is in position to continue to lead the industry in sales. Netflix may prove to be ahead of the online entertainment curve by offering less expensive streaming-only accounts.

“In any economic downturn, both businesses and consumers look to improve their bottom line, but the largest companies with the flexibility to offer the discounts and promotions that will satisfy a thrifty consumer and engender long term loyalty,” said Larry Freed, president and CEO of ForeSee Results.

Customer satisfaction with online brokerage remains flat at 78, but Charles Schwab overtakes Fidelity at the top for the first time ever. Charles Schwab gains a point to 80, while Fidelity moves in the opposite direction, slipping one point to tie the industry aggregate of 78. But the biggest mover is E*TRADE, which gains 3% to 76 and has improved 10 points since it was first measured in 2000.

“Charles Schwab and Fidelity know their customers better and are beating the Internet pure-play e-brokerages, which is impressive for the oldest and most traditional names in the game,” said Freed.

“But E*TRADE is carving itself a niche by targeting a different kind of customer and has made big strides over the last ten years in terms of satisfaction, which is a proven predictor of financial results.”

Customer satisfaction with online travel is up 1.3% to a new all-time high of 78 and an increase of 4% since 2008. Expedia scores 79 to lead the industry, and it has led or held a share of the industry lead since 2000. The “all others” aggregate of smaller online travel sites like Kayak.com gains a point to 79. Travelocity climbs 3% to 77 and Orbitz slips 1% to 75. Priceline drops 4% to 73, losing most of what it had gained last year.

February 15, 2011
Email Drives More Traffic To Retailer Websites Than Social Media

Traditional marketing provides a better return on investment (ROI) for retailers than social media, according to a new report from ForeSee Results.

Do you find email to be more effective than social media? Let us know in the comments.

The report found that social media interactions are a main influence for only 5 percent of visitors to retail websites.

The research found that more traditional marketing tactics like promotional emails (19%), search engine results (8%), and Internet advertising (7%), influence more visits to retail websites.

Other highlights from the report include:

*Traditional marketing techniques like promotional emails influence not only more traffic; they deliver better-quality traffic. Some of the most satisfied site visitors arrived at the site because of previous familiarity with a brand, promotional emails, word-of-mouth, and product review websites.

*Most people want to engage with retailers, but but prefer to do so via email or on retail websites, rather than on social sites. In fact, only 8% of online shoppers said that’s social media was their preferred way to interact with a retailer.

*People are more satisfied with retailers’ presence on Facebook than they are with Facebook itself.

“Every retailer should know how many customers are influenced by promotional emails, advertising on Facebook or word-of-mouth recommendations, and furthermore, they should know which group is most likely to buy,” said Larry Freed, President and CEO of ForeSee Results and author of today’s report.

“They should also know how people want to hear from them and how well they’re doing when it comes to communicating through those channels. Serious thought needs to be given to finding out whether social media is worth the investment for their business, and then if the answer is yes, they need to make the most of it by making sure that interactions on social media meet the needs and expectations of customers.”

Do you use email marketing and social media? Let us know in the comments.

February 7, 2011
More People Adopting Mobile Shopping

People are using mobile phones to access websites and apps more than ever before, with 33 percent using their phones to access a retailer website, and an additional 26% indicated they plan to access retailer websites or mobile apps by phone in the future, according to a new report from ForeSee Results.

“It looks like more than half of all shoppers will soon be using their mobile phones for retail purposes,” said Kevin Ertell, vice president of Retail Strategy at ForeSee Results and author of today’s report.

“Any retailer not actively working to develop, measure, and refine its mobile experience is leaving money on the table for competitors.”

Shoppers who are highly satisfied with a mobile experience say they are 30% more likely to buy from that retailer online and 30% more likely to buy offline, as well as being far more likely to return to the main website, recommend it, and be loyal to the brand.

“It’s another reminder and a nice way to quantify that every customer touch point matters to overall loyalty and sales,” added Ertell. “Retailers cannot afford to ignore or even neglect the mobile experience and assume it won’t hurt their traditional online or in-store business.”

In general, shoppers rate their satisfaction with retail websites significantly higher (78 on the study’s 100-point scale) than their satisfaction with mobile experiences (apps and sites) (75).

“It’s true that mobile sites have far less maturity than traditional e-retail websites,” said Larry Freed, president and CEO of ForeSee Results.

“But I’m not sure that matters to consumers. Their expectations are being set by the best websites and the best mobile experiences. They aren’t going to have a lot of patience for excuses about the challenges that mobile shopping presents when it comes to design and usability. Retailers need to step up their game in this area.”

Other highlights of the report include:

* A total of 11% of web shoppers reported having made a purchase from their phones this holiday season, compared to only 2% at this time last year.

*The majority of shoppers who used their phones did so to compare price information (56%). Shoppers also used their phones to compare different products (46%), to look up product specifications (35%), and to view product reviews (27%).

*While in physical stores, more than two-thirds of mobile shoppers (69%) used their phones to visit the store’s own website, but nearly half (46%) also used their phones to access a competitor’s website.

January 10, 2011
Online Holiday Shoppers More Satisfied With Price

Shopper satisfaction with online retailers during the holidays indicates they are more satisfied with prices this year than they were at the same time last year, according to a new report from ForeSee Results.

Customers’ ratings of prices this year (72.1 on the study’s 100-point scale) are more than half a point higher than they were in 2009; though still slightly lower than on Cyber Monday, due to fewer online incentives and specials. Satisfaction with price still remains far below pre-recession levels, which was as high as 75.1 the week of Thanksgiving, 2007.

Customer satisfaction with online retailers during the first week after Thanksgiving was 73.3 on the study’s 100-point scale, slightly higher than it was on Cyber Monday and slightly higher than it was in 2009.

“Analysis of these numbers has to be taken in context said Kevin Ertell, vice president of retail strategy at ForeSee Results.

“Last year, a score of 73.1 was real cause for concern because it was such a drop from the previous year’s score of 75.6. But the struggling economy has changed our definition of success, and the fact that we see scores that are slightly higher than last year is a very good sign.”

As it does nearly every year, online customer satisfaction did take a small dip on Thanksgiving weekend, and is still rebounding.

“In successful retail years, we see online customer satisfaction scores drop over Thanksgiving and then rebound by mid-December,” said Larry Freed, President and CEO of ForeSee Results.

“It remains to be seen whether that will happen this year, but I have a lot of reasons to be hopeful.”

December 7, 2010
Online Holiday Shoppers More Satisfied So Far

Customer satisfaction with online retailers on Cyber Monday matched last year with 73.1 on the American customer satisfaction Index’s (ACSI) 100-point scale, but overall satisfaction during the Thanksgiving holiday week and weekend was higher than in 2009, according to a new report from ForeSee Results.

The figures are a composite of more than 130 scores for individual retail websites, which ranged from 42 to 88. A score of 80 is generally considered the starting point for excellence. Forty of the 136 retail websites in the ForeSee Results benchmark (nearly one-third) qualify as “excellent.”

Among the retail websites included in the benchmark are Ace Hardware, Bass Pro, Belk, Cabelas, Chef’s Catalog, Chicos, DSW, Eddie Bauer, eBags, Gamefly, Godiva, Harry and David, Helzberg Diamonds, Home Depot, LEGO, Musicians Friend, Panasonic, Samsung, ShopNFL, Sears, Sephora, and Sony Style.

“The great news for the one-third of retailers that are doing so well is that satisfied online shoppers are not only more likely to buy online, they’re also 47% more likely to buy offline,” said Kevin Ertell, vice president of retail strategy at ForeSee Results.

"In a struggling economy, retailers providing a great customer experience have more to gain because they’ll be the best positioned to capture available market share when other retailers fail to meet customers’ increasingly high standards and expectations."

Other highlights of the report include:

*Online shoppers are more satisfied with prices this year than they were last year.

*On e-retail websites with superior satisfaction scores (over 80 on the study’s 100-point scale), customers report they are significantly more likely to purchase online and offline than are visitors to sites with subpar customer satisfaction (below 70).

*Online shoppers are more likely to purchase online this year than they were last year as a result of their website visit, but their likelihood to purchase offline after a website visit is on par with last year.

“Higher satisfaction has a proven link to higher revenues,” said Larry Freed, President and CEO of ForeSee Results.

“So while we’re always excited to see what’s already happened through the traffic and revenue numbers that come from Coremetrics, Nielsen, Hitwise, and Comscore, we’ve found retailer executives are also watching their own satisfaction scores quite closely this time of year to see what will happen next.”

December 1, 2010
Facebook Scores Low In User Satisfaction

While Facebook is the most popular website in America, users indicate they are not enthusiastic fans of the social network, according to the 2010 American customer satisfaction (ACSI) Index E-Business Report, released in partnership with ForeSee Results.

Facebook scored 64 on the ACSI’s 100-point scale, which puts its satisfaction even lower than IRS e-filers. This puts Facebook in the bottom 5 percent of all measured private sector companies and on the same level as airlines and cable companies, two continuously low-scoring industries with poor customer satisfaction.

"Facebook is a phenomenal success, so we were not expecting to see it score so poorly with consumers," said Larry Freed, president and CEO of ForeSee Results.

"At the same time, our research shows that privacy concerns, frequent changes to the website, and commercialization and advertising adversely affect the consumer experience. Compare that to Wikipedia, which is a non-profit that has had the same user interface for years, and it’s clear that while innovation is critical, sometimes consumers prefer evolution to revolution."

Social media websites were measured for the first time by ACSI, and the category includes Facebook, MySpace, Wikipedia and YouTube. Twitter was not included in the social media category because of the number of users that access the site via third party applications. Wikipedia leads the category at 77, followed by YouTube at 73, and Facebook at 64 and MySpace 63.

"Social media has become too big to ignore, so we added it to our list of e-business measures," said Claes Fornell, ACSI founder and professor of business at the University of Michigan. "We are quite surprised to find that satisfaction with the category defies its popularity."

Google fell 7 percent but continues to lead the portals and search engines industry with a score of 80. It is also just the second time Google loses its top spot to the "all others" category of search engine competitors which increased 5 percent to 82. Microsoft’s Bing search engine makes a solid first showing with a score of 77, trailed by Yahoo! (76), AOL (74), and Ask.com (73).

"Google may be suffering from trying to be too many things to too many people, but it still has the most loyal following with 80% of its users citing Google as their primary search engine," said Freed.

"That said, Bing’s first measure is impressive and could put some pressure on Google. The new search engine is already making gains in market share and using clever marketing and advertising to distinguish itself from the market leader."

In the news and information category, Fox News now leads its competition online as well as on TV. FoxNews.com debuts at the top of the industry with a score of 82, the highest score of any news site has ever received in nine years of measurement. Competitors MSNBC.com (74) and CNN.com (73) trail in satisfaction as well as ratings. All major news websites improve, including newspaper websites for USATODAY.com (+4% to 77) and NYTimes.com (+4% to 76).

July 20, 2010
ForeSee Results Launches Social Media Measurement Tool

ForeSee Results has introduced a "Social Media Value Calculation" tool aimed at helping its clients understand the impact of their social media marketing campaigns on revenue.

"Most businesses have accepted the marketing value of social media without any real proof points," said Larry Freed, president and CEO of ForeSee Results.

"We can count how many Facebook fans, how many Tweets, how many complaints, and how many people click through ads on social sites, but we haven’t had a way to calculate a tangible return on investment for social media efforts, not to mention other marketing initiatives. Now we can."

ForeSee Results uses a scientific methodology created at the University of Michigan to measure customer satisfaction and examine its impact on future behaviors. Using its proprietary methodology, ForeSee has created a way to tie influences on customer visits to a website, store or call center with what they actually spend. ForeSee says its Social Media Value Calculation tool helps businesses understand how much revenue is being influenced by social media compared with traditional advertising, marketing emails and brand awareness.

Research conducted using the Social Media Value Calculation tool indicates investments in social media vary from company to company. Some companies are spending millions in advertising their social media presence, only to find out that social media is influencing just 1 percent of all purchases.

Marketing emails have been neglected in favor of social media, and emails are influencing 32 percent of purchases. Other companies are seeing social media as a main influencer of 5-6 percent of all revenue.

"The Social Media Value Calculator tells our clients what is influencing their customers’ visits, how much those customers spend, and which marketing efforts are having the greatest return on investment," added Freed.

"Every business is going to have a different model for success, which is why it’s so critical that companies understand their customers and not allocate marketing spending based only on hunches, industry standards, or expert guidance."

June 15, 2010
Online Banking Satisfaction Sees Slight Drop

Customer satisfaction with online banking dropped two points in 2010, from 83 in 2009 to 81 (on a 100-point scale), according to a new study by ForeSee Results and Forbes.

The study found that despite the drop, online banking still faired better than offline banking channels and most other online industries with the score of 80 considered to be the threshold for excellence.

"Despite everything that’s gone on in the financial sector over the past several years, including a stumbling economy, bailouts, and credit freezes, financial institutions have turned to their websites as a way to maintain and even increase customer loyalty," said Larry Freed, president and CEO of ForeSee Results.

"While the dip in score could predict more trouble for the recovery, it also shows that the online channel continues to be the most effective marketing channel for banks and credit unions."

The five largest banks in the country (Bank of America, Citibank, Chase, PNC, and Wells Fargo) scored the lowest in the study, while credit unions tend to have the highest online customer satisfaction scores. However, with all financial institution categories scoring higher than 80, online banking (81) is providing more satisfaction than offline banking (75).

"When it comes to customer satisfaction, big banks, with relatively unlimited resources, are not performing as well as smaller institutions with fewer resources," added Freed.

"While the big companies try to outdo each other with lots of flashy bells and whistles, the small banks have had to keep their focus on satisfying the customer because that’s the only way they can compete. And as the data shows, it’s paid off."

The study also found highly satisfied online banking and credit union customers report being:

*56% more likely to purchase additional products and services and 65% more likely to increase online bill payment.

*64% more likely to use the website as the main way for interacting with the bank

*76% more likely to recommend the bank overall and 63% more likely to recommend the bank’s website.

May 13, 2010
Netflix Leads In Online Retailer Satisfaction

Satisfaction with the top 100 e-retailers has increased from a decline this time last year, to an all-time high score of 78 points on a 100-point scale, according to new research from ForeSee Results.

The research found consumers are more satisfied with their online experiences than ever before. Nearly every individual retailer reached a score that matched or exceeded previous satisfaction levels.

"The state of the economy really forced e-retail to step up their game," said study author Larry Freed, president and CEO of ForeSee Results.

"Since so much of the financial downturn was out of their control, companies turned to those things they could improve, and now they are reaping the benefits. Customer satisfaction is not a byproduct of a healthy economy. Instead, a healthy economy is a consequence of satisfied customers."

Netflix ranked as the top retailer for the sixth year in a row with a score of 87, up tow points from last year. Amazon trailed by a single point and maintained its second place position for the sixth year running.

In 2009, only five websites scored more than 80 (generally considered the threshold for excellence), but in 2010, 28 websites score 80 or higher. Not a single e-retailer scored below 70 (usually the cut off for bottom performers), an unprecedented event in the research’s six-year history. Several companies made huge jumps in score, the most improved being MarketAmerica.com (+12 to 75), Etronics.com (+10 to 73) and Ambercrombie.com (+9 to 79).

The study quantifies that a highly satisfied online shopper is 73% more likely to purchase online, 47% more likely to purchase offline, 72% more likely to recommend, 53% more likely to return, and 67% more like to purchase again than a dissatisfied shopper. The study also shows that a one-point increase in online customer satisfaction (as measured by this study) translates to roughly $89 million in increased sales for a top e-retailer.

"The impact of customer satisfaction on an e-retailer’s bottom line has never been clearer," said Kevin Ertell, Vice President of Retail Strategy at ForeSee Results.

"This research proves that customer satisfaction is still the number one driver of loyalty, positive word of mouth, and future purchasing intent. Despite a serious dip in 2009, e-retail has jumped back in line with the other industries we measure, an indication for many that the economy is finally on the way back."

May 5, 2010
Netflix Scores High In Customer Satisfaction

Customer satisfaction with ecommerce websites has rebounded a year after experiencing its first decline since 2004, according to the American customer satisfaction Index (ACSI).

The e-commerce sector gained 1.8% to 81.4 on ACSI’s 100-point scale, nearly matching its all-time high of 81.6 set in 2007.

The increase in the overall ecommerce sector (made up of e-retail, online brokerage, and online travel industries) is driven by the rebounding online brokerage industry, which climbed 5 percent to 78 after it lost 6 percent last year during a crashing stock market. Both e-retail (1% to 83) and Internet travel (3% to 77) also improved over last year.

"It’s no surprise that satisfaction with online brokerages is linked to the stock market. When the market crashes, customers aren’t happy. When it recovers, they feel better about their experience," said Claes Fornell, ACSI founder, professor at the University of Michigan.

"But the improvements in e-retail and online travel are a good sign that consumers may be ready to spend again, if they can find the means to do so."

The online financial services industry improved more than any other. Fidelity continues to lead the sector (79) along with Charles Schwab (79). The improvement in the industry overall is largely due to big gains by E*Trade (7% to 74) and TD Ameritrade (7% to 76).

E-retail increased 1 percent to 83 and continues to be the highest scoring industry in the ecommerce sector. Satisfaction with online retail exceeds satisfaction with brick and mortar retail (76). E-retail is the only industry in the ecommerce sector to score above 80, which is considered the starting point for excellence for the Index. Netflix (2% to 87) leads the Index for the first time, trailed closely by Newegg (86) and Amazon (86).

"The dramatic increase in satisfaction with the e-retail industry over the last ten years has been driven largely by the success of pure-play e-retailers" said Kevin Ertell, Vice President of Retail Strategy at ForeSee Results.

"The retailers who are only selling online have, for the most part, paid better attention to customer needs and expectations and have worked to create a better online software experience for their customers."

Customer satisfaction with online travel increased for the first time in five years, matching its all-time high of 77.

Expedia (79) remains the top-score of the sector. Priceline experienced the biggest gain increasing 7 percent to 76.

February 16, 2010
Amazon Customers Most Satisfied Online Shoppers

Customers of the largest online retailers are more satisfied than ever according to ForeSee Results’ annual report on holiday shoppers.

The ForeSee Results E-Retail Satisfaction Index (U.S. Holiday Edition) jumped 7 percent to 79 on the Index’s 100-point scale, a new all-time high. Websites for Macys, SonyStyle, The Gap, The Home Shopping Network and Overstock.com had the greatest increases in satisfaction year over year, with all five seeing increases of 10 percent or more.

"Even in this tough economic climate, e-retail continues to be the bright spot in a dark environment and last year’s declines are proving to be the anomaly," said Larry Freed, president and CEO of ForeSee Results.

"But those gains aren’t necessarily shared across the board. These are the biggest retailers on the web, and they’ve got the ability to invest in the web channel and even meet the price points that consumers are looking for in this economy. Smaller and midsized e-retailers may not be so lucky."

Amazon scored the highest with 87, improving 4 percent since last year and setting a new record for the Index. Eleven online retailers scored over 80, and none scored below 70. A number of companies made big gains in score, and the most improved among them include Macys (up 13% to 79), Gap (up 10% to 76), and Overstock (up 10% to 76.)

The study found that a highly satisfied online shopper is 65 percent more likely to purchase online, 44 percent more likely to purchase offline, 70 percent more likely to recommend, and 49 percent more likely to return than is a dissatisfied shopper.

"It’s no surprise that price is priority this year. It’s a reflection of these difficult economic times," said Kevin Ertell, Vice President of Retail Strategy at ForeSee Results.

"But simply cutting prices isn’t necessarily a business model for success, so prioritizing website improvements that customers value most is an absolute necessity."

Related Articles:

>Cyber Monday Deals Attract Online Shoppers

>Walmart Wins Thanksgiving, Amazon Wins Black Friday

>Online Retailers See Strong Cyber Monday Sales

January 4, 2010