COSTA MESA, Calif.: 7 June 2017 — In the growing home improvement market that is expected to reach $360 billion in consumer spending this year, overall customer satisfaction with home improvement retailers is increasing right along with it, according to the J.D. Power 2017 Home Improvement Retailer Satisfaction Study,SM released today. On a 1,000-point scale, overall customer satisfaction increases to 816, up from 795 in 2016.
“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.”
The three key performance indicators (KPIs) that have the highest effect on satisfaction are (in order of importance): 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).
There is a significant association with the number of top KPIs met and the likelihood to repurchase and recommend. When each of the top three KPIs are met, 72% of customers say they “definitely will” repurchase from the retailer. When two KPIs are met, that percentage drops to 47%. When one or no KPI is met, the percentages drop further to 36% and 24%, respectively.
Following are some findings of the 2017 study.
- Satisfaction drives loyalty: Among delighted customers (overall satisfaction scores of 901 and above), 73% say they “definitely will” repurchase from the retailer, compared with the study average of 41%. Additionally, 78% of delighted home improvement retailer customers say they “definitely will” recommend the retailer to others, compared with the study average of 43%.
- Expressing the loyalty: Nearly three-fourths (72%) of delighted customers say they “strongly agree” that they are loyal to their retailer, compared with the study average of 40%. A similar percentage (70%) of delighted customers say they “strongly agree” that if they were unable to be a customer of their primary retailer, they would be disappointed, compared with the study average of 41%. Additionally, 82% of delighted customers say they “strongly agree” they are proud to be a customer of their primary retailer, compared with the study average of 47%.
- Delightful experience influences recommendations: Among delighted customers, the average number of positive recommendations is 4.3, compared with the study average of 2.7.
Home Improvement Retailer Satisfaction Rankings
Ace Hardware (835) ranks highest in customer satisfaction among home improvement retailers for an 11th consecutive year. Ace Hardwarescores significantly higher than the study average in the staff and service factor (+53 points) as well as store facility (+16 points), driven by strong attribute ratings for availability and knowledge of sales staff; availability of desired merchandise; and availability of product information.
Menards (824) ranks second and Lowe’s (817) ranks third.
The 2017 Home Improvement Retailer Satisfaction Study measures customer satisfaction with home improvement retailers by examining five factors (in alphabetical order): merchandise; price; sales and promotions; staff and service; and store facility.
The study is based on responses from 2,751 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months, and was fielded in February-March 2017.
For more information about the J.D. Power Home Improvement Retailer Satisfaction Study,visit http://www.jdpower.com/resource/us-home-improvement-retailer-satisfaction-study.
See the online press release at http://www.jdpower.com/pr-id/2017078.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe.
About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info