NTT DATA Study Finds Home Depot, Amazon and Ace Hardware Rank as Leading Retailers in Customer Experience

NTT DATA Services, a recognized leader in global technology services, today released its latest Customer Friction Factor (CFF℠) assessment entitled, Customer-Driven Commerce Generates Friction Challenges for Retail Industry. The research addresses the ability for retailers to deliver a superior multi-channel experience, from online purchase to in-store pickup — confirming that the consumers’ website experience is impacting the bottom line for retailers.

“The most impactful way that retailers can differentiate themselves is by delivering the best customer experience. Identifying the causes of friction across customers’ online purchasing lifecycle — and resolving them — is vital for retail leaders to maintain customer satisfaction. If customers are frustrated, first they will abandon their transactions and next, they will switch to other retailers for a better shopping experience,” said Bob May, Senior Vice President, Consumer Industries, NTT DATA Services.

NTT DATA’s comprehensive assessment used its CFF framework to measure various customer friction points across 15 top-tier retail company websites including Ace Hardware, Amazon, Auto Zone, Best Buy, Cabela’s, Dick’s Sporting Goods, Dollar Tree, Home Depot, Kohls, Lowe’s, Office Depot, Sears, Target, Walgreens and Walmart — primarily focusing on product search, information transparency, purchase availability and customer service.

Key Study findings

  • Retailers who presented their customers with a frictionless purchasing experience saw their businesses grow at a greater rate and were more profitable than their competitors. Retail leaders achieved a 48 percent improvement in revenue growth and 45 percent improvement in net income in a side-by-side comparison with their peers whose purchase experiences had poor CFF scores.
  • Leading retailers offer consumers smooth transition from online purchase to in-store pickup, streamlined purchase flow, inventory tie-in, customer expectation setting and clear communications.
  • Customers’ frustrations include pop-up ads and misdirection, plus repetitive processes and too many decision points, resulting in higher likelihood of shopping cart abandonment or post-purchase dissatisfaction from incorrect inventory information.
  • 35 percent of all friction from online purchase to in-store pickup is related to technology — excessive key strokes and page navigations, a lack of inventory knowledge and an absence of search filters.
  • Only 33 percent of organizations studied could have a product ready for pick-up within one hour of placing an order online, 50 percent could not fulfill an order same day.

NTT DATA’s unique approach to helping companies eliminate customer friction and accelerate digital experiences includes a two-pronged approach. First, a CFF assessment provides a deep analysis of quantifiable friction points and identifies appropriate recommendations with an actionable plan. Second, it helps organizations identify transformational solutions, enabling them to continually improve their customer experience by monitoring, measuring and reporting on success across key performance indicators — even as systems and stakeholders change.

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