Amazon, Uber outperform rivals Flipkart, Ola in customer satisfaction, loyalty
New brands like CureFit’s CultFit and EatFit have much higher net promoter scores than Amazon and Uber, shows a RedSeer Consulting white paper
Bengaluru: Online retail firm Amazon.com Inc. and ride-hailing app Uber Technologies Inc. have outperformed their rivals, such as Flipkart and Ola, in terms of customer satisfaction and loyalty at a time that the consumer internet business is faced with declining overall customer satisfaction levels, a new report shows. A sectoral analysis of consumer satisfaction across the industry shows that newer segments such as health and fitness, online ticketing and hyperlocal services are outperforming online fashion and e-tailing.
RedSeer Consulting’s white paper analysed net promoter scores (NPS) across the industry. This is a key customer satisfaction metric based on how likely customers are to recommend a brand or company.
Both the e-tailing and cab hailing sectors, which together account for more than 80% of India’s consumer internet startup landscape, had an average NPS of over 25% in Q2 2016. That number declined to just above 20% for the e-tailing sector and below that rate for the cab hailing space, by Q2 2018. A higher rate implies increased customer loyalty and satisfaction.
The average NPS across consumer internet businesses is around 24%. Customer satisfaction and loyalty are based on two key aspects. These include meeting minimum expectations and providing value-added services that exceed expectations at those price points or industry standards.
However, a customer’s minimum expectation changes over time, making certain expectations that were once considered value-addition a minimum requirement instead. Companies that have constantly innovated to keep providing customers with more value addition end up with higher NPS rates, according to RedSeer.
For instance, within the online fashion and e-tailing sectors, Amazon’s NPS is well above 25%. That is higher than the overall industry average and it also exceeds the averages for both sectors. For the online ride hailing or cab space, the average NPS is around 25% but Uber’s NPS rate is more than 35%.
New brands like CultFit and EatFit, the fitness chain and health food services run by CureFit Healthcare Pvt. Ltd, have much higher NPS rates than even Amazon and Uber. CultFit has a near 60% NPS, while EatFit’s is well over 40%, compared with sector averages of more than 45% and close to 20% respectively. A majority of CureFit’s business comes from a single city, Bengaluru, while Amazon and Uber have a pan-India presence.
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