2017 home improvement retailer satisfaction...

2017 Home Improvement Retailer Satisfaction Study

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J.D. Power 2017 Home Improvement Retailer Satisfaction Study

2017 Home Improvement Retailer Satisfaction Study Publish Date: June 7, 2017 Consumers rely on home improvement retailers in their efforts to maintain and update their homes. Retailers able to provide an environment that makes it easy for customers to get the merchandise and guidance they need are more likely to gain a larger share of their customers’ wallets. To achieve customer loyalty, home improvement retailers must understand their customers’ needs and experiences and focus on continual performance improvement to increase customer satisfaction, grow advocacy, and maximize sales.

The SolutionThe J.D. Power 2017 Home Improvement Retailer Satisfaction StudySM measures key drivers of satisfaction among customers who purchased home improvement-related products from a home improvement retailer. The overall customer experience is based on five key drivers of satisfaction: merchandise; price; sales and promotions; staff and service; and store facility. The study, which provides the home improvement retailer industry with insights into the evolving needs and demands of customers, includes the following objectives:

• Measure key drivers of satisfaction among customers who purchased home improvement-related products from a home improvement retailer

• Measure brand image and reputation

• Provide an understanding of brand awareness and how customers view retailers

• Examine customer shopping patterns and brand-level consideration

• Gauge how customers shop at home improvement retailers

• Measure product quality and/or problems experienced

• Deliver insight into what drives customer loyalty and commitment

How It WorksSamplingThe Home Improvement Retailer Satisfaction Study includes the largest home improvement retailers that represent at least 67% of market share. The 2017 study is based on the responses of more than 2,750 customers who purchased a home improvement-related product from a home improvement retailer within the previous 12 months. The study was fielded in February and March 2017.

Home improvement retailers evaluated in the study include:

• Ace Hardware• Lowe’s• Menards• Sears• The Home Depot• True Value

The overall customer experience is based on five key drivers of satisfaction: merchandise; price; sales and promotions; staff and service; and store facility.

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J.D. Power IndexBased on data obtained from the survey, an overall index is created that quantifies the impact the factors that measure the entire customer experience and the attributes within them have on customer satisfaction. Specifically, the relative weight that each attribute contributes to the factor index is first calculated, followed by calculating the relative weight that each factor contributes to the overall satisfaction index. The results of those calculations are used to predict overall satisfaction based on a weighted sum of the factors, which constitutes the overall index.

Award Criteria

For a company to be award eligible, a minimum of 100 completed surveys must be received. The highest-ranked home improvement retailer receives a trophy. With a subscription to the study, which provides a full understanding of customer insights regarding their brand, the award recipient has the opportunity to publicly leverage the award through J.D. Power’s award licensing program

Based on data obtained from the survey, an overall index is created that quantifies the impact the factors and the attributes within them have on customer satisfaction.

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INDEX METHODOLOGY FORMULA

Source: 2013 U.S. Auto Insurance StudySM Figure OS-20

Index

The “Index” is acalculated roll-up of performance scores, weighted relative to theimportance of each factor to overall satisfaction.

“Factors” are distinctparts of the customerexperience that together encompass the entire experience.

“Attributes” are specific elements that compriseand drive satisfaction within a factor.

“Diagnostics” are criticalto quality elements that influence satisfaction within an attribute or factor.

Factor

Factor

Diagnostic

Attribute

Financial ROI

Attribute

Attribute

Attribute

Index ExplainsOSAT and

Loyalty Measures

FactorsExplainIndex

AttributesExplainFactor

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Leveraging J.D. Power Data to Better Understand Competitive PositionSatisfaction DriversThe index for the Home Improvement Retailer Satisfaction Study segments the customer experience into five factors and 16 attributes:

• Store Facility – Availability of parking – Cleanliness of store – Convenience of store location – Ease of finding desired merchandise on my own – Store layout and design

• Merchandise – Availability of desired merchandise – Availability of product information – Selection of brands available – Variety of merchandise offered

• Staff and Service – Availability of sales staff – Concern for your needs – Courtesy of sales staff – Knowledge of sales staff – Speed of checkout

• Price – Overall rating of the price paid for the products and services received

• Sales and Promotions – Overall rating of sales and promotions

OversamplingJ.D. Power offers a proprietary oversample opportunity allowing companies that are not currently profiled in the syndicated study to obtain competitive data sets in order to benchmark their performance against competitors that are profiled in the study. This opportunity is also available for profiled companies that want to dive deeper into a specific topic covered in the study. The same questionnaire used for the syndicated study is used for the proprietary oversample study.

J.D. Power offers a proprietary oversample opportunity allowing companies that are not currently profiled in the syndicated study to obtain competitive data sets in order to benchmark their performance against competitors.

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Subscription DetailsThe 2017 Home Improvement Retailer Satisfaction Study provides access to the insights and tools needed to gain a comprehensive, in-depth understanding of how your company is performing and to identify key areas needing improvement.

Study deliverables include:

• New online dashboard analytic tool

– Active dashboard: Data elements in the dashboard may include such items as key charts and tables that highlight Key Performance Indicators (KPIs), rankings, verbatim reports, broadcast messages that have been shared, presentations, and other user-uploaded documents of interest. Dashboards can be customized to contain only the information that is critical for each user, and an expandable toolbar allows users to easily conduct ad hoc analyses and reports

– Performance analysis: Allows users to easily view key metrics against multiple points of reference, providing them with more control when performing root-cause analyses and benchmarking

– Verbatim comments: Full search functionality allows rapid access to verbatims of interest

• Detailed industry findings: Competitive performance overview by factor

• Access to a personalized competitive data set allows you to see how your company stacks up against your competitors, the industry, and the highest performers across factors and attributes at the national level

– Competitive data set in SPSS and Excel file format

• An on-site executive presentation with management insights, which includes customized strategic recommendations, study results, ongoing best practices, and analyses of high-performing home improvement retailers

• Swoop gap analysis: Highlights improvement opportunities that have the greatest impact on customer satisfaction if improved

• Copy of the current questionnaire

About J.D. PowerJ.D. Power is a marketing, consumer intelligence, and data and analytics company that helps its clients measure, understand, and improve the key performance metrics that drive their growth and profitability. J.D. Power’s industry benchmarks, unique data and analytics platform, and reputation for independence and credibility has established the company as one of the world’s most well-known and trusted providers of Voice of the Customer insights. Established in 1968, J.D. Power is headquartered in Costa Mesa, California, and has offices in North/South America, Asia Pacific, and Europe.

The study provides access to the insights and tools needed to gain a comprehensive, in-depth understanding of how your company is performing and to identify key areas needing improvement.

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For more information about J.D. Power products and services, please contact:

Christina Cooley at 805-279-0354 or [email protected] Tapp Nicholson at 859-428-6117 or [email protected]

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2017 home improvement retailer satisfaction...

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