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Tuesday, August 30, 2005

Keeping the Customer Satisfied:
"Published: August 30, 2005
(After September 07, 2005, this article will only be available to eStat Database subscribers.)

Google and Yahoo! led the pack in a new study of consumer satisfaction with online portals, search engines and news sites. The study's sponsor drew a link between customer satisfaction and revenues.

According to the latest University of Michigan 'American Customer Satisfaction Index' report on e-business, Google scored 82 out of a possible 100 in the index, while Yahoo! rose from 78 last year to 80, only two points behind.

Survey sponsor Foresee Results, commenting on the latest data, drew a link between customer satisfaction and revenues. 'Google and Yahoo, the leaders in customer satisfaction among the content facilitators, both experienced revenue growth that more than doubled from 2003 to 2004,' Foresee said.

'The research shows that those that provide the highest levels of customer satisfaction will prosper the most financially,' said Larry Freed, president and CEO of Foresee.

Customer satisfaction with search engines, portals and news and information sites rose 4.7% this year, reaching an overall score of 75.9. This narrows the gap with the ACSI e-commerce category (which includes online retail, travel, auctions and brokerage sites), which scored a 78.6 in its last measurement.

'The lines between e-business companies are being drawn more in terms of content facilitators and content providers,' said Mr. Freed. 'Google and Yahoo! lead the way, with MSN, AOL and Ask Jeeves trailing, but closing the gap.'

Among portals, Yahoo! was followed by MSN, with a score of 75, and AOL, with a score of 71. Although AOL's customer satisfaction score was lower, it registered the fastest growth over the previous year, improving by 6%. Among search engines, Ask Jeeves rated a score of 72.

In the news and information category, a variety of sites scored close together, with ABCNews.com ahead by a nose with a score of 74, followed by MSNBC.com at 73. CNN.com, USAToday.com and NYTimes.com each scored 72.

"There is no clear winner in the news and information space, as all of the sites have difficulty in differentiating themselves from the pack and leveraging their unique personalities that exist in their traditional channels," said Mr. Freed.

For information on this topic, read eMarketer's Portal Update: 2005."

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