COSTA MESA, CA: Customer satisfaction in the $360bn US home improvement market is driven by three factors which have significant impact on repurchase and recommendation, according to a new study.
The US Home Improvement Retailer Satisfaction Study from consumer insights business JD Power was based on survey responses from 2,751 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months.
Satisfaction was measured across five factors – merchandise, price, sales and promotions, staff and service, and store facility – and, on a 1,000-point scale, overall customer satisfaction increased to 816 in 2017, up from 795 in 2016.
The study highlighted the three key performance indicators (KPIs) that had the highest effect on satisfaction: number of times received sale/promotional flyers/brochures (received more than once in past 12 months); quality of merchandise (above expected); and length of time waited for greeting (waited less than 5 minutes).
It also found a significant association with the number of top KPIs met and the likelihood to repurchase and recommend.
When each of the top three KPIs were met, 72% of customers said they "definitely will" repurchase from the retailer. When two KPIs were met, that percentage dropped to 47%. And when one or no KPI was met, the percentages dropped further to 36% and 24%, respectively.
Among delighted customers (whose overall satisfaction scores were 901 and above), 73% said they "definitely will" repurchase from the retailer, compared with the study average of 41%.
Additionally, 78% of delighted home improvement retailer customers said they "definitely will" recommend the retailer to others, compared with the study average of 43%.
This group also gave a higher average number of positive recommendations at 4.3, compared with the study average of 2.7.
"Even in a large market like home improvement, it's the attention to detail that can affect customer satisfaction," said Greg Truex, senior director of the at-home practice at J.D. Power.
"Home improvement retailers understand that customers with higher levels of satisfaction are more likely to repurchase and more likely to recommend to their friends and family."
Data sourced from JD Power; additional content by WARC staff