While L.L.Bean ranked supreme among this year’s Customer Service Champions overall, younger shoppers certainly express a difference of opinion. New analysis of Prosper Insights & Analytics’ 2015 Customer Service Champions reveals that both the Millennial (born 1983 – 1997) and Gen X (1965 – 1982) generations nominated Amazon.com as their top choice for customer service excellence, while Boomers (1946 – 1964) were firmly entrenched in the L.L.Bean camp. However, a review of the three generations’ top picks for customer service providers highlights interesting similarities between these divergent age groups. Continue reading →
It’s an Amazon, Amazon, Amazon, Amazon world, but one retailer continues to top the online giant when it comes to shopper experience.
For the second year in a row, outdoor outfitter L.L.Bean tops the list of Prosper Insights & Analytics’ Customer Service Champions over second place Amazon.com. Customer Service Champions were developed from a write-in vote from more than 6,000 U.S. consumers (18+) in September 2015 and weighted by each retailers’ relative size in annual revenues as well as its fan base, as defined by a retailer’s promoters (per the Net Promoter Score.*) See last year’s winners here and 2013’s top picks here. Following L.L.Bean and Amazon (in rank order) are: Nordstrom,Kohl’s, Lands’ End, REI, Zappos.com, JC Penney, QVC, and Macy’s.
While consumers overall recently voted L.L.Bean the best in customer service, if you ask a Millennial, he or she will likely disagree. New analysis from Prosper’s Customer Service Champions ranking reveals a vast disparity between two of the most divergent generations, Millennials (born 1983-1997) and Boomers (born 1946-1964), when it comes to the retailers they elevate to customer service excellence.
First, let’s take a look at Millennials’ choices. This generation crowned online giant Amazon.com as their Customer Service Champion, followed by Victoria’s Secret, Best Buy, Nordstrom, and Macy’s. As an online leader and de facto search engine for many, Amazon’s top position among that this tech-savvy generation should come as no surprise. Add to that the Amazon Prime membership program, which is most heavily concentrated in young customers – nearly two out of five members are under the age of 35 – and Amazon’s got a recipe for loyalty among the Millennial generation that few retailers have been able to successfully copy. Continue reading →
With the back-to-school season winding down, it’s about that time of year for shoppers to look forward to the winter holidays. And while it may seem premature to preempt Halloween with the holiday discussion, last year one in five began their shopping prior to October, so many consumers are already planning their budgets for this all-important spending season. In July, we asked consumers to share their preliminary thoughts on holiday spending, and it appears that retailers may be in for a brighter holiday season compared to 2013.
According to the Prosper Spending Score, the overall outlook* for holiday gift spending in 2014 is up more than 8% from last year. While celebrants planning to spend more on gifts are relatively stable year-over-year at 9.1%, those budgeting less for gifts dropped 11% from 2013 to 38.0%. The majority of consumers (52.9%) are planning to keep budgets in line with the previous year. Directionally speaking, our preliminary Spending Score has served as a relatively accurate bellwether for consumers’ holiday intentions; last year’s lackluster score in July foreshadowed a nearly 3% drop in planned gift spending (released by the National Retail Federation the following October). Similarly, bullish preliminary outlooks for holiday spending preceded spending increases in 2010 and 2012. Continue reading →
Consumers may forgive, but they will not forget. Unfortunately in Target’s case, shoppers are slow to even muster up that forgiveness. With its holiday data breach impacting every level of Target’s organization, one must look to the most important piece of the equation – customers – to assess the ongoing damage and pinpoint what’s working for the retailer versus what’s not. For this new analysis on the current state of the former discount darling, we’re examining the point of view from one very influential group of shoppers, women. Continue reading →
As many a marketer will likely attest, too often in today’s retail environment consumers’ final decision in the buyer process comes down one little five letter word: price. Shoppers, armed with their mobile devices, maintain a direct connection to the best deals, promotions, coupons, and offers with just a tap of their fingers, many times giving shoppers an intelligence edge over retailers competing for those buying dollars. In this age of smart consumerism, what’s a retailer to do?
Amazon.com may be finally facing a worthy adversary in the retail arena: itself. The online giant recently announced its intent to increase the $79 annual fee on its popular Prime membership by $20 to $40, but our consumer insights suggest that its shoppers aren’t buying into plan, signaling what could be a dangerous move in an already hyper-competitive retail environment where loyalty is hard to win and easy to lose. Continue reading →
When we released our predictions for Holiday Winners and Losers in November, Target was poised for a “win” in a not-so-robust, hyper-competitive season of shopping. With a nice mix of heavy-spending Gen X-ers as well as a base of those covetable Millennials, Target made an attractive value proposition to budget-conscious shoppers: discount shopping without feeling like you’ve shopped at a discounter. In addition, Target’s sought-after in-house brands and exclusive merchandise assortment likely helped the retailer keep at least a few eyes (and wallets) from wandering over to holiday’s biggest winner, Amazon.com.
Fast forward two months, and instead of touting a positive holiday season, Target is attempting to clean up one big mess. The Target name has now become synonymous with words like data breach, identity theft, and [lack of] financial security – a warning and case study for other retailers. But what has become of Target shoppers? Continue reading →
While it remains to be seen how (or if) the 2013 Marketplace Fairness Act will impact sales for Amazon.com, what we do know is that the online leader seems to have a loyal constituency in its Amazon Prime Membership. For a $79 yearly fee, this group of elite shoppers receives free two-day shipping on eligible items and access to Amazon’s Instant Video streaming service as well as the Kindle Lending Library – and CEO Jeff Bezos is keeping the perks coming.
The risk to competitors is fairly obvious; this shopper coalition gives Amazon a top notch spot in their retailer consideration sets. Our intel tells us that Prime members’ propensity to shop Amazon.com is about double that of the general population for several major retail categories, including Women’s and Men’s Apparel, Shoes, Electronics, Sporting Goods, Linens and Bedding, and Health/Beauty Care. Of course, this doesn’t mean that Prime members are shopping Amazon exclusively or that they shun more traditional brick and mortar retailers. So let’s take a look at who these shoppers are, why they are so valuable to Amazon, and which retailers may be facing a Prime threat. Continue reading →