MARKETING/SOCIAL MEDIA

Pizza Hut, Papa John’s lead in quick-service satisfaction

BY Dan Berthiaume

Ann Arbor, Mich. – Pizza chains Pizza Hut and Papa John’s are tied for the highest customer satisfaction score among quick-service restaurants. According to the 2014 American Customer Satisfaction Index (ACSI), Papa John’s (unchanged from 2013) and Pizza Hut (+3%) share the lead at 82, with Little Caesar (-2%) and Domino’s Pizza (-1%) not far behind at 80.

Subway falls out of the top spot (-6% to 78) to tie with Wendy’s, and Burger King is unchanged at 76. Starbucks is down 5% to 76, followed closely by Dunkin’ Donuts at 75 (-6%). KFC declines the most, dropping 9% to 74. Fellow Yum Brands chain Taco Bell is also down (-3% to 72). At the bottom of the category, McDonald’s dips 3% to 71.

ACSI data show that Americans ate out an average of four meals per week in 2013 and customer satisfaction with full-service restaurants is up 1.2% to an ACSI score of 82, holding a slim lead on fast-food (80).

“This is a considerable transformation for an industry that posted scores in 60s throughout the 1990s and never exceeded an ACSI score of 70 until 2001,” said David VanAmburg, ACSI director. “Price has always been a strong point for fast food, but fast casual restaurants have been improving quality and service at such a brisk pace that customer satisfaction with fast food is nearly as high as dine-in restaurants.”

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FINANCE

IBM: Online spending rises Father’s Day week

BY Dan Berthiaume

Armonk, N.Y. – Overall U.S. online retail sales for the week leading up to Father’s Day (June 9-15) were up more than 14% from the same period in 2013. According to the cloud-based IBM Digital Analytics Benchmark, Father’s Day average order value was $119.37.

Mobile traffic accounted for more than 38% of all online traffic, up more than 26% compared to the same period in 2013. Mobile sales saw strong growth, up more than 37%, reaching nearly 19% of all online sales. Smartphones drove 24.8% of all online traffic compared to tablets at 12.8%. However, tablets drove 12.2% of all online sales while smartphones accounted for nearly half of that at 6.4%. Tablet users also averaged $106.71 per order, compared to smartphone users, who averaged $89.55 per order.

As a percentage of total online sales, iOS was almost four and a half times higher than Android, driving 15.217% compared to 3.4% for Android. On average, iOS users spent $103.85 per order compared to $73.08 for Android users, a difference of 42%. iOS also led as a component of overall traffic with 25.6% compared to 12.3% for Android.

Shoppers referred from Facebook averaged $99.43 per order, compared to Pinterest referrals, which drove $142.75 per order. However, Facebook referrals converted sales at a rate more than four times that of Pinterest referrals, perhaps indicating stronger confidence in network recommendations.

The IBM Digital Analytics Benchmark also reported real-time trends across three major retail categories for Father’s Day purchases:

Department Stores: Father’s Day total online sales grew by 30.5% from the same period last year, with mobile sales growing by 29% year over year.

Home Goods:
Father’s Day total online sales grew by 21.4% from the same period last year, with mobile sales growing by 25% year over year.

Apparel: Father’s Day total online sales grew by 13.5% from the same period last year, with mobile sales growing by more than 42% year over year.

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OPERATIONS

Report: PayPal to expand operations in Ireland

BY Dan Berthiaume

San Jose – PayPal is reportedly expanding the customer service center located in its European headquarters based in Dundalk, Ireland. According to the Irish Independent, PayPal will make a “massive investment” in the center in the next four years that will add 400 workers.

The expansion will bring the combined PayPal-EBay workforce in Dundalk to 1,850. New jobs will include customer solutions, risk operations and telesales positions.

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