Consumer Satisfaction Declines for Netflix, Rises for Amazon

December 28, 2011 -

Online retailer Amazon has risen slightly among the top companies for customer satisfaction while Netflix takes a significant nose dive, according to an annual holiday online retail satisfaction report released today from analytics firm ForeSee.

ForeSee’s latest report scores the top 40 online retailers in 14 different areas, such as content, website functionality, merchandise and pricing. The report also contains top retailers’ scores for the last six years. This year Amazon scored an 88 of 100 due to decent customer support, fast shipping through its Amazon Prime membership program and no taxes on items sold directly by Amazon.

Netflix, on the other hand, saw its customer satisfaction numbers decline by 8 percent to 79 out of 100. While the ForeSee report notes areas where customers are unsatisfied, pricing is the key issue. In July the company raised its subscription price by 60 percent. This made a lot of subscribers unhappy. Then in September the company announced an ill-conceived scheme to separate its disc business from its streaming business. Customers went insane and gave the company a very public thrashing. Naturally it caused Netflix to abandon that plan. But the net result for the third quarter was a loss of 600,000 subscribers.

The declining customer satisfaction numbers are all about pricing and the company's difficulty in keeping streaming content as fresh as consumers would like it to be. Analysts and even Netflix executives see a challenging year ahead for the company..

Source: VentureBeat


Comments

Re: Consumer Satisfaction Declines for Netflix, Rises for Amazon

"...and no taxes on items sold directly by Amazon."

:(

*lives in Washington, pays nearly 10% sales tax*

Re: Consumer Satisfaction Declines for Netflix, Rises for Amazon

That's kind of how sales tax works in the US -- as per Quill Corp. v. North Dakota and National Bellas Hess v. Illinois Dept. of Revenue, states can only force businesses to collect sales tax if the business has a physical presence within the borders of the state. It should be noted, however, that the former ruling explicitly states that Congress is "free to decide whether, when, and to what extent the States may burden interstate mail-order concerns with a duty to collect use taxes" -- hence the existence of SB1452.

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