iPerceptions Releases Retail / E-Commerce Industry Report Q1 2011

Voice of Customer Data From Retail Websites Shows Visitor Satisfaction Declining While Sales Climb

MONTREAL--(Marketwire - Jun 2, 2011) - iPerceptions Inc. (TSX-V: IPE), a leading provider of web-focused Voice of Customer (VoC) analytics based on actual visitor feedback, today announced the release of its Retail / E-Commerce Industry Report for Q1 2011. As the online channel grows as the medium of choice for a greater share of retail purchasers, the report shows that overall website satisfaction is on the decline.

Overall website satisfaction, as measured by the iPerceptions Satisfaction Index (iPSI), dropped to 71 out of 100 in Q1 2011, from 74 out of 100 in Q1 2010. However, U.S. retail e-commerce sales estimates showed that online retail spending reached $38 billion for Q1 2011, up 12% versus one year ago, according to comScore. This discrepancy indicates that website visitor expectations are on the rise.

Moreover, task completion fell to 71% in Q1 2011, from 76% during the same time period in 2010. Among visitors who came to the site specifically to make a purchase, task completion dropped to 56%, from 61%. For a company that does $10 million in annual online sales, a 5% drop in task completion amounts to a loss of $500,000.

"Expectations among online retail shoppers are rising quickly and retail websites are struggling to keep up," said Claude Guay, president and CEO of iPerceptions. "As visitors become more familiar with retail websites, they become more discriminating in terms of accurate search results, clear pricing and adequate product information."

Other important findings from the report include:

  • Nearly a third (31%) of all retail website visitors came to compare product features and prices in Q1 2011, up from 12% in Q1 2010.
  • The share of visitors who came to gather initial information fell to just 27% in Q1 2011, down from 49% in Q1 2010.
  • The share of visitors who came for support rose to 15% in Q1 2011, from 6% in the same period of last year.
  • 'Trust' scores increased significantly versus one year ago, yet all of the other website attribute ratings posted losses.

The report analyzed real-time feedback from more than 230,000 people visiting nearly 300 retail and e-commerce sites to identify the most important issues and trends facing this unique industry.

Data contained in this report represents aggregated information obtained from iPerceptions' enterprise solution webValidator™ and free 4Q surveys deployed on the websites of many leading brands. The full report can be found on the iPerceptions website at http://www.iperceptions.com/resource-center/.

About iPerceptions
iPerceptions is a leading web-focused Voice of Customer analytics provider. Its webValidator Continuous Listening solution, 4Q Suite solution, Web Analytics Solution Profiler (WASP) and proprietary iPerceptions Satisfaction Index (iPSI) turn millions of data points into easy-to-understand strategic and tactical decision support for website marketers. iPerceptions' clients include such well-known brands as Dell, InterContinental Hotels, General Motors, Canadian Tire, Hyundai, LG Electronics, Choice Hotels International, BMW and Monster Worldwide. For more information, please visit http://www.iperceptions.com.

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Contact Information:

Media Contact
Barbara Reichert
Reichert Communications, LLC
415-248-0230 x7012