LONDON--(BUSINESS WIRE)--Customer satisfaction with Tesco fell to a new low in the final quarter of 2011, according to the National Customer Satisfaction Index (NCSI-UK). During the same period, Sainsbury’s NCSI score rose to its highest level to date.
Sainsbury’s showed the most improvement among the “big four” supermarkets, up 3% to a customer satisfaction score of 75. Sainsbury’s also outperformed its major competitors in sales growth with a 4.6 % rise in fourth quarter sales. Conversely, Tesco’s customer satisfaction score declined by 3% to 70, and the supermarket reported its worst Christmas sales performance in decades.
“Some supermarkets have made the mistake of concentrating only on prices, and at the expense of quality and service,” said James Rudd, Managing Director of CFI Group UK. "It’s proven to be a costly error, and opened the door for competitors who seem to be doing a better job of delivering high quality products and good service – at better value.”
Smaller grocers and discount stores have made major gains in the last two years, rising to an NCSI score of 80 on average and edging closer to Waitrose (84). Customer satisfaction with Waitrose dipped for the first time in 2011, though very slightly. Nevertheless, Waitrose maintains higher customer satisfaction than any other supermarket – and any other brick-and-mortar company tracked by NCSI.
Customer satisfaction with Asda is steady at 79 for the third year in a row, followed closely by Morrisons (up 1% to 78). The Co-operative Food trails far behind with an NCSI score of 68, having struggled with the acquisition of Somerfield, supply chain issues and store disruptions.
Read Full National Customer Satisfaction Index Report Here: http://www.cfigroup.com/resources/whitepapers_register.asp?wp=75
Key Findings:
Most Improved: Sainsbury’s
Best Value for Money: Asda and Waitrose
Highest Customer Loyalty: Waitrose
About NCSI-UK (http://www.ncsiuk.com/)
The National Customer Satisfaction Index applies the technology and methodology of CFI Group and the American Customer Satisfaction Index (ACSI). Indices are reported on a 0 to 100 scale. The causal model determines which drivers of satisfaction, if improved, would have the most effect on customer loyalty and profitability. This methodology was developed at the University of Michigan and has been adopted worldwide as a leading macro- and micro-level indicator by universities, governments, and countries including the United States, the United Kingdom, Sweden, Singapore, Korea, Turkey, South Africa, Mexico, Colombia, Dominican Republic, Indonesia, and Barbados. As a financial indicator, ACSI data have proven to predict corporate revenue and earnings growth, stock market performance, consumer spending and GDP.