The survey - the Consumer Satisfaction Index 2009 - found that John Lewis was more highly regarded than any of its competitors, winning by a significant margin ahead of second placed IKEA. Despite a more price-focused retail market with more demanding consumers, John Lewis managed to attain the same satisfaction score as last year.
For the survey Verdict quizzed customers about where they shopped most frequently, and then asked them to rate those stores in terms of range, price, convenience, quality, service, ambience, facilities and layout. The data was collated to give retailers a score for each of these criteria, as well as an overall consumer satisfaction rating.
John Lewis retained the top spot in 2009 after having taken the crown in last year's survey. The result is the latest in a long line of success: the department store has come either come first or second in the survey ever since it began back in 2000 (six times first place, four times second place). John Lewis performs well across a range of measures, but it is in service that it really outperforms.
Verdict's consulting director, Neil Saunders, comments: “Today service standards on the high street are better than they were ten years ago - but John Lewis still stands out as being exceptional. Its partners really do care about customers and that makes all the difference. Unfortunately for other retailers, it is not something that is easily imitated - it is an inherent part of John Lewis's culture and philosophy.”
IKEA the Swedish furniture giant comes in at second place, up from fifth last year. It scores well on both range and price, with an above average score for quality. “Shoppers are more focused on price than they used to be, especially when buying furniture and home products,” says Saunders. “IKEA is one of those stores that provides good quality products at a very reasonable price - and gives the customer lots of choice.”
The internet retailer Amazon moves up one place to third position. Convenience is a key driver of satisfaction, although Amazon also performs well on service where it has improved since last year. Verdict's senior consultant, James Flower, comments: “Amazon is the top placed internet player, mainly because it makes life easier for its customers - the site is simple to use, has a wide range to pick from and there's good service backup if things go wrong.”
Value player TK Maxx takes the fourth spot this year, up by 20 places since last year. “Price is the driving force behind TK Maxx's entry to the top ten,” says Flower. “Shoppers are much more price sensitive now but they are still interested in designer and premium products - TK Maxx gives them the best of both worlds and its model now has real resonance with consumers.”
The world's leading direct beauty seller, Avon, takes the fifth slot in the index. The retailer has built a strong reputation among shoppers for product quality and innovation and also scores well on convenience and service. “Consumers appreciate Avon's high levels of personal service and they like convenience Avon's direct selling method gives them,” says Flower.
When it comes to the individual retail sectors, the strength of the John Lewis Partnership is further revealed. The department store side of the business comes top in three sectors (clothing, homewares and electricals) while Waitrose tops the food and grocery sector. In the remaining sectors, Wickes heads DIY, TKMaxx tops footwear, Amazon music and video and Avon personal care. “John Lewis is a department store in the true sense of the word,” says Flower. “It has real authority across all of the sectors it trades in and scores more highly than traditional specialists in those sectors.”
Verdict, which forecasts that overall retail spending will fall by 0.7% this year, maintains that satisfying and holding on to customers will be a key driver of success. “Overall there will be no growth in the market this year,” says Saunders, “so holding on to every customer and every pound they spend is critical. Retailers that don't understand their customers will quite simply lose out.”
