A Drop in the Polls
In terms of customer satisfaction, the ever-convenient Amazon (AMZN) once reigned supreme. But in recent years, this dominance is starting to come into question.
Amazon’s score on the American Customer Satisfaction Index declined to a record low last year, scoring a 78/100 on the index — significantly lower than the 86/100 that it scored just five years earlier.
What’s Going Wrong?
Amazon used to be notorious for its obsession over customer satisfaction. A former Amazon executive characterized the company culture of the past 20 years as “customer obsession at any cost” — and, currently, as “customer obsession at the right cost”.
One potential culprit behind Amazon’s dip in satisfaction could be its advertising practices, such as allowing sellers to pay to appear at the top of searches for certain products. This adds another revenue stream for Amazon, but it also means that users receive less relevant search results.
Additionally, during the pandemic, Amazon Prime’s two-day shipping guarantee stretched to as many as six days for some customers. Ongoing supply chain issues are reportedly still causing shipping delays. This is another factor that is likely leading to frustrated customers.
Winning Back Shoppers
Amazon is taking measures to right the ship.
The company reportedly spent around $1 billion last year to fight counterfeit products on its platform. It has also introduced new tools to improve the shopping experience, such as the ability to compare similar products. However, Amazon’s slip comes at a crucial time of the year for retailers, in an environment in which competitors are investing heavily in their ecommerce solutions.
So with the holiday season approaching, you be the judge. The next time you order something from Amazon, pay close attention to your experience and decide firsthand if the tech giant is truly slipping. After all, even at the Everything Store, it’s the customer who’s always right.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.