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Study: Netflix falls, Amazon rises in annual satisfaction poll

Recent customer satisfaction research from analytics company ForeSee revealed that Netflix's inability to read its customer base led to a substantial decline in consumer happiness.

The survey ranked 40 ecommerce retailers on a 100-point scale, and after years of remaining above 80 - the typically standard for excellence - Netflix dropped seven points to 79.

Its choice to create an alternative service, Qwikster, to let it focus on streaming content and phase out the less profitable DVD-by-mail service, blew up in its face and was promptly cancelled, The Huffington Post reports.

Amazon on the other hand, rose two points to 88, recording ForeSee's best rating in its 14 years of ranking customer satisfaction.

"Customer satisfaction is a leading indicator of consumer spending, and the bump in the Index is good news for online retailers," said Larry Freed, president and CEO of ForeSee. "Unemployment is down, consumer confidence is up, and holiday retail sales are up from last year. Improved customer satisfaction suggests the good news may continue into the new year."

While Netflix fell substantially, ecommerce satisfaction levels with other companies such as Gap and Overstock also declined, dropping five and four points to scores of 73 and 72, respectively.

Conversely, Electronics seller TigerDirect saw the biggest gains, increasing six points to 79. J.C.Penney followed, up five points to 83.