Woolies tops SAcsi clothing retailer ranks

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The clothing retail outlets of Ackermans, Edgars, Jet, Mr Price, Pep Stores, Truworths and Woolworths have scored a customer satisfaction rating of 82 out of 100 based on the data collected between April and June 2013, using both telephonic and web-based surveys.

All the clothing retailers were chosen according to their market share. The industry leaders are Woolworths (6.9% above industry average), Ackermans (1.7% above industry average), and Pep Stores (0.9% above industry average). Edgars and Truworths are on par with the industry. Mr Price and Jet scored 1.8% and 2.6% respectively below the industry average.

"The SAcsi rates brands based on what their customers have to say about the brand. It is interesting to see that the industry leaders are brands that spread across South Africa's demographic spectrum," says Prof Adré Schreuder, founder and chair of the SAcsi. "If you satisfy your target customer group, then your brand can survive these economic times. Woolworths has shown, yet again, that it is committed to customer satisfaction in both its services and products and has set the South African benchmark in its industry."

"If we look more closely at the results, they tell us that Woolworths' position as the industry leader is directly linked to the retailers' ability to exceed its customers' expectations. Pep Stores also exceeded its customers' expectations and scored highest on value for money. The results also show that all the clothing brands have scored well on customer loyalty, meaning that clothing retail customers are very likely to continue to shop at their preferred clothing retailer."

New international benchmark

When compared against international scores, the American Customer Satisfaction Index (ACSI) has satisfaction benchmark scores for Department and Discount Stores (77), and for Speciality Retail Stores (78) and the NCSI-UK has a benchmark for Department Stores (78). South African clothing retailers have thus set the new international benchmark (82), outranking Singapore (70) and South Korea (71).

SAcsi holds a licence with the ACSI and now forms part of a growing number of ACSI-licensed partner countries worldwide, which allows South Africa to compare its industries' customer satisfaction with this global community. "Through this proven methodology, SAcsi aims to be the voice of the customers to the major industry players in the South African market."

Research methodology

Each company was measured through telephonic and web-survey methods at a statistically reliable sample of at least 270 respondents per company. For the clothing retail industry, the total sample was 1949 randomly selected respondents who had recently visited a retail outlet of the included brands.

Customer satisfaction is measured using an advanced statistical model that has been rigorously evaluated, in line with the ACSI methodology.

The model combines three drivers of customer satisfaction: customer expectations, perceived quality and perceived value. The calculated customer satisfaction index is statistically linked to two outcomes: customer complaints and customer loyalty. The industry model can predict the outcome of changes in customer loyalty with a great degree of accuracy.

The SAcsi index gives companies detailed information to assist them in improving customer satisfaction. Each month, customer satisfaction results are released for specific industries.

"Companies are choosing to subscribe to SAcsi to receive statistically sound information, which speaks volumes about the credibility of the index. This is not research that is commissioned for marketing purposes, it is used as the basis for strategic management decisions," concludes Schreuder.

Summaries of the industry level reports are available on www.sacsi.co.za.