Any brand would yearn to be atop a customer satisfaction list and, according to the just released J.D. Power 2015 Appliance Retailer Satisfaction Study, that spot is occupied by Lowe’s.
A lofty position, to be sure, that reinforces a brand’s commitment to customer engagement, customer experience, and customer loyalty.
In its eighth year, the study measures customer satisfaction with appliance retailers by examining seven factors (in order of importance): Sales staff and service; store facility; price; delivery service; sales and promotions (new to the study); merchandise; and installation service. Satisfaction is measured on a 1,000-point scale.
The study finds that sales staff and service has the greatest impact on customer satisfaction. When key services are provided by the sales staff, satisfaction is substantially higher than when they are not. The most impactful aspects of service include the availability of the sales staff to provide assistance (833 vs. 708, respectively) and their ability to greet customers promptly (847 vs. 714); listening carefully to customer questions or concerns (837 vs. 673); and thanking customers for their purchase (836 vs. 634).
More than one quarter (28%) of customers cite price as their main reason for selecting the retailer from which they purchased their appliances. What’s more, 64% of those customers indicate their decision was based on a sales price compared with the original price (17%), package price (13%) or rebate/financing/other (6%). The study reveals that 40% of customers shop only one retailer and don’t consider others.
Although sales and promotions may drive sales, it does not guarantee customer loyalty, the study says. In fact, only 38% of customers say they “definitely will” make their next appliance purchase at the same retailer and 42% say they “definitely will” recommend that retailer.
“Price and promotions drive the sale, but it’s the sales staff and the service they provide that make a satisfied customer,” said Christina Cooley, director of home improvement industries at J.D. Power. “Appliance retailers need to differentiate themselves beyond price. To satisfy customers, retailers must focus on delighting customers throughout the shopping, purchase, delivery and installation processes. Retailers that focus on attracting customers through pricing, but further satisfying them in areas beyond price, are better able to drive sales and win repeat business.”
Lowe’s achieved high satisfaction across the customer experience. On average, Lowe’s customers who purchased an appliance on sale actually saved less than customers of other retailers, but Lowe’s scored highest in the sales staff and service factor and has substantially higher loyalty rates than competitors, the study says.
Nearly one-half (46%) of customers who purchased one or more appliances from Lowe’s said they “definitely will” purchase their next appliance from the retailer, compared with the study average of 38 percent.
Lowe’s (830) regained the highest ranking in customer satisfaction among appliance retailers and performed particularly well in all seven factors. The retailer ranked second in the 2014 study after previously ranking highest for four consecutive years. The Home Depot (817) ranked second, followed by Sears (816).
Overall satisfaction with appliance retailers is 816.
The 2015 Appliance Retailer Satisfaction Study is based on responses from nearly 3,000 customers who purchased major home appliances from a multi-regional appliance retailer within the previous 12 months. The study was conducted in January and February 2015.