American Customer Satisfaction Index up 0.9%

ANN ARBOR, Mich. The American Customer Satisfaction Index climbed to 75.7 on the ACSI’s 100-point scale, up 0.9% from the previous quarter.

“For consumer spending to rebound, two conditions must be met: consumers must be favorably disposed to spend and have the means to spend,” said Professor Claes Fornell, head of the ACSI and author of The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference.

“The good news from ACSI is that the first condition has been met: customer satisfaction is looking up. But it remains to be seen to what extent the government stimulus plan will help translate stronger satisfaction into increased consumer demand.”

Customer satisfaction with the retail sector, which includes department and discount stores, specialty retail stores, supermarkets, gas stations, and health and personal care stores, gained1.3% to 75.2.

Among department and discount stores, Nordstrom and Kohl’s led with an ACSI score of 80, the former on the strength of its customer service, the latter for its superior value. Deep discount store Dollar General drops 4% to score of 75, not from a decline in service, but from a migration of a higher socio-economic group of consumers to the retailer – another effect of the recession – a group that tends to be harder to please.

Discount store giant Wal-Mart had mixed results, falling 4%for its supermarket business to an ACSI score of 68, well below the industry average, but rising 3% for its non-grocery discount business to 70. Wal-Mart’s Sam’s Club also rises 3% to 79.

In the specialty retail category Home Depot climbed 5% to an ACSI score of 70, matching its best result in four years. However, the improvement failed to lift Home Depot from the bottom of the industry, and the home improvement retailer still trails rival Lowe’s (76) by a wide margin. Office Depot moved in the opposite direction, falling 4% to 75 amid store closings and layoffs.

Supermarkets were unchanged with an ACSI score of 76 even though food prices remain high. Publix was on top with a score of 82, the fifteenth straight year the supermarket chain has led the category. Safeway gained 4% to 75, its highest score since 2002.

The ACSI score for e-commerce fell 2% to 80. Online retail declines 1.2% to 82, driven mostly by drops for Amazon and eBay. But with a small dip, Amazon (-2% to 86) remains the second highest scoring firm of all companies in this release. The situation for e-Bay is different. Its ACSI score slumped 4% to 78, an all-time low.