Dallas, Texas 12/31/2014 (FINANCIALSTRENDS) – Amazon.com, Inc. (NASDAQ:AMZN)’s stock is down 22% year-to-date but that’s not the reason investors shall mourn. The online retailer has ranked No. 1 on the American Consumer Satisfaction Index with a rating of 88 out of 100.
In addition, Amazon.com is also expected to convert 70% of its 10 million Amazon Prime trial members it signed up this holiday season to paying subscribers, according to Consumer Intelligence Research Partners, or CIRP.
The news is enough to point the solid foundation for the company going forward, where it will also expand into grocery delivery business and will also experiment with Amazon Fire Phone. The stock is currently trading near a lower spectrum of its 52-week range between $284 and $408.06.
Consumer Satisfaction Index
Amazon.com, Inc. (NASDAQ:AMZN) succeeded to stay ahead of No. 2 H.J. Heinz Company (NYSE:HNZ) and No. 3 Hershey Co (NYSE:HSY) / Mercedes-Benz (Daimler) in a close competition.
Bryan Eisenberg, e-commerce consultant, said Amazon has proven that customer empathy could not be won by focusing on sales alone and the corporates need to think about branding and metrics in a novel way. Amazon’s category managers focus on selection, price, availability and customer experience.
The Index scores each company based on more than 70,000 interviews, industry scores, economic sector scores, customer satisfaction score and several federal or local government service scores.
Boost in Prime Membership
CIRP estimates 7 million of the 10 million new Amazon Prime trial members to subscribe for a one-year membership. The estimates are based on analysis of prior conversion and retention rates of Amazon Prime membership. CIRP analysis also suggests that 84% of Amazon Prime subscribers also renew their membership after one year.
Josh Lowitz, partner and co-founder of CIRP, said that the estimated 70% conversion to paid membership could generate about $700 million in membership fee revenue for the online retailer.