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Consumer expectations of retailers growing fast, says new engagement index

J. Crew, Nike, Marshall’s and TJ Maxx, Walmart, Home Depot, Whole Foods, Amazon.com, Costco, and Dick’s all captured engagement leadership positions in a challenging retail environment where consumer expectations have increased nearly 23 percent over 2014, according to the Brand Keys 2015 Customer Loyalty Engagement Index.

February 16, 2015

J. Crew, Nike, Marshall’s and TJ Maxx, Walmart, Home Depot, Whole Foods, Amazon.com, Costco, and Dick’s all captured engagement leadership positions in a challenging retail environment where consumer expectations have increased nearly 23 percent over 2014, according to the Brand Keys 2015 Customer Loyalty Engagement Index.

The study, conducted by the New York-based brand engagement and customer loyalty research consultancy Brand Keys, creates ratings based on a brand’s ability to meet customers’ expectations better than the competition when compared to a category Ideal.

“In a marketplace where retail brands struggle to create meaningful differentiation and engagement, those better able to identify customers’ expectations and address them via authentic emotional values will see tangible bottom-line results," said Robert Passikoff, president of Brand Keys.

“While marketers have only recently acknowledged the importance of consumers expectations, it’s something Brand Keys has tracked for 20 years. Empowered and socially networked consumers have come to expect everything from brands, particularly as regards emotional gratification and engagement,” said Passikoff. “That’s created an environment marked by extraordinarily high levels of emotional expectations.”

Meanwhile brands have only managed to improve their ability to satisfy consumers’ expectations by 5 percent this year. “Brands able to meet consumers’ emotional expectations always have higher engagement power, more loyal customers and, axiomatically, greater sales and profits,” said Passikoff. “The difficult part is accurately measuring this gap and determining what emotional values can help a brand successfully fill it.”

In the retail category brands ranked as follows:

Apparel

1. J. Crew
2. Old Navy
3. Victoria’s Secret
4. Banana Republic/Footlocker (Tie)
5. H&M
6. PacSun
7. Anthropologie
8. Forever 21/L.L. Bean (Tie)
9. GAP
10. Express
11. American Eagle Outfitters
12. Aeropostale
13. AmericanApparel
14. Abercrombie & Fitch

Athletic Footwear

1. Nike
2. New Balance
3. Skechers
4. Adidas
5. Reebok
6. Mizuno/Fila (Tie)
7. Asics/Under Armour (Tie)
8. Brooks

Department Stores

1. Marshall’s / TJ Maxx (Tie)
2. Macy’s
3. Kohl’s
4. Dillard's
5. JCPenney
6. Sears

Discount

1. Walmart
2. Target
3. Kmart

Home Improvement

1. Home Depot
2. Lowe’s
3. Ace
4. True Value

Natural Foods

1. Whole Foods
2. The Fresh Market
3. Trader Joe’s
4. Sprouts Farmer’s Market

Online Retail

1. Amazon.com
2. Zappos.com
3. Ebay.com
4. Overstock.com
5. Buy.com

Price Clubs

1. Costco
2. Sam’s
3. B.J.’s

Sporting Goods

1. Dick’s
2. Cabela’s
3. REI
4. Big 5 Sporting Goods
5. Sports Authority/Modell's (Tie)