Larry Freed Customer Quotations

Some companies have really figured out how to take customer satisfaction to the next level, and the stakes just keep getting higher.

Online retail is figuring out ways to compensate for being a virtual experience by providing a lot more information than you'd be able to find in-store. Many online stores offer extensive product information, side by side specification comparisons, customer reviews and 360 degree views, all from the convenience of your computer.

On the bright side, we see satisfaction with Transaction Costs increasing slightly, which is a departure from last year. This shows that retailers are exceeding customer expectations with their pricing strategies for both products and shipping. If online retailers can manage expectations and maintain overall satisfaction during this last week, they should continue to gain value from the holiday shopping season.

Keeping shoppers happy while they are on the site is just one piece of the satisfaction equation. A bad experience with fulfillment or customer service could outweigh a positive experience on the site.

Retailers are getting better and better at managing shipments, but any screw-up, and you lose the customer forever. However, I heard a lot fewer consumer horror stories this year. I think we got a little lucky this year; there were no major weather storms that played with logistics.

We saw the same trends in lowered satisfaction and key behaviors tied to loyalty last year. However, last year's drops were far more significant. This year, online retailers did a better job managing customer expectations as the holiday shopping deadlines approached. In return, retailers will be rewarded with higher loyalty long after the holiday season comes to a close.

Customers' standards for e-commerce sites continue to rise as the industry matures, and online companies have struggled to keep up with industry leaders and high customer expectations.

During this critical stage in the holiday shopping season, online retailers face huge challenges to maintaining high satisfaction. Those who aren't able to meet customer expectations online during the last week or two of the holiday shopping season risk the long-term impact of lessened customer loyalty during the weeks and quarters to come.

E-commerce has greatly evolved over the past few years, leading to clear differentiation between the leaders and laggards in most industries. While there's no one formula for success, customer satisfaction is always a focus for any company that is successful over the long term.

It's reasonable to expect that such high levels of customer satisfaction will keep sales and revenue growing at Amazon in the coming year.

The days leading up to the holiday pose a huge challenge for online retailers, who haven't yet figured out how to maintain high customer satisfaction during this critical juncture.