Netflix, Gap Rank Low in Customer Satisfaction

Netflix (NASDAQ:NFLX) and Gap Inc. (NYSE:GPS) were among the worst-performing websites in a customer satisfaction survey of the largest online retailers.

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Overstock.com Inc. (NASDAQ:OSTK) came in last out of the 40 largest online retailers, with a rating of 72 out of 100 after falling 4 points since the last survey, according to market researcher ForSee.

Gap.com was second to last with 73 points, down 5 from a year ago. Other laggards include buy.com and websites run by Sony (NYSE:SNE) and Toys “R” Us.

Forsee said customer satisfaction is important for online retailers because it can lead to higher sales, more customer loyalty, and increased word-of-mouth recommendations — essentially free and often highly effective advertising.

Netflix saw the biggest decline in customer satisfaction this year, after the company’s decision to raise prices and split its DVD and video-streaming services alienated many users. Though the latter plan was scrapped, the former had customers subscribing to both the DVD and streaming services paying 60 percent more each month.

“Netflix totally misread its customer base and is paying the price, damaging its brand among both consumers and investors,” said Larry Freed, chief executive officer of ForSee.

Netflix dropped 7 points to 79 in the latest poll, the largest decline of any retailer in the survey, after having once come close to customer-satisfaction leader Amazon.com (NASDAQ:AMZN) in previous ForSee surveys.

Amazon climbed 2 points to 88 to lead ForSee’s survey for the 14th consecutive time. Forsee runs the poll about every six months.

The biggest gainer was TigerDirect.com, a tech gadget and parts website owned by Systemax Inc. (NYSE:SYX), which climbed 6 points to 79 — the same score Netflix fell to on this latest survey.

Another big gainer was J.C. Penney’s (NYSE:JCP) website, JCP.com, which rose 5 points to 83, putting it in a tie for third place with QVC.com, Apple’s (NASDAQ:AAPL) online store, and VistaPrint.com (NASDAQ:VPRT).

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To contact the reporter on this story: Emily Knapp at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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