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Ifbyphone Responsiveness Index Report
           ®


October 2012


Ifbyphone® research shows that 1 in 5 retail
stores take more than a minute to answer
customer calls even though customers are
59 percent more likely to buy and 73 percent
more likely to recommend brands that respond
in sixty seconds or less.
About the Ifbyphone® 2012 Responsiveness Index                                                     Local Response Times

Brand responsiveness plays an important role in sales conversions,                            25
                                                                                                    23
                                                                                                                22
customer retention and brand advocacy. When customers cannot
                                                                                              20
quickly establish a voice connection with a brand, they are likely to




                                                                        NUMBER OF COMPANIES
abandon their attempt and move on to a competitor, regardless of
                                                                                              15
the benefits the brand has to offer.                                                                                                         13
                                                                                                                          12

                                                                                              10
The Ifbyphone® Responsiveness Index ranks STORES Magazine’s                                                                                            8
                                                                                                                                                                 7
2011 top 100 retail brands based on how quickly customers connect
                                                                                                                                                                          4
                                                                                               5
to a live conversation when calling each brand. Response times and                                                                  3                                               3

rankings were measured by three independent secret shoppers who
                                                                                               0
measured the amount of time it took for each brand to answer




                                                                                                    9


                                                                                                                9


                                                                                                                      9


                                                                                                                                9


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                                                                                                                                                            -8

                                                                                                                                                                     11
a customer phone inquiry with a live conversation at both local




                                                                                                         9-

                                                                                                                 20


                                                                                                                           30


                                                                                                                                    40


                                                                                                                                              50


                                                                                                                                                           60


                                                                                                                                                                    -
                                                                                                        9.




                                                                                                                                                                 90
and corporate locations.                                                                                                       TIME TO ANSWER


                                                                                                   In general, most retailers are doing a good job
                                                                                                   responding to customer contacts at the local level.
                                                                                                   More than half of inbound local calls are answered
                                                                                                   in less than 20 seconds and the largest grouping
                                                                                                   of brands (23) answer in less than 10 seconds.
                                                                                                   At the other end of the spectrum, 14 brands took
                                                                                                   more than a minute to respond – an eternity for
                                                                                                   customers who are conditioned to expect
                                                                                                   immediate brand connections.



2012 Responsiveness Index Report                                                                                                                                                1
Leading Local Stores                                                      Unresponsive Local Stores
Feature Lightning Fast Responses                                          Risk Alienating Customers


 Brand                   Average time to      Responsiveness    Top 100    Brand             Average time to           Responsiveness   Top 100
                         reach real person,   Rank,             Brands                       reach real person,        Rank,            Brands
                         Local Store          Local Store       Ranking                      Local Store               Local Store      Ranking
 RadioShack              3 seconds            1                 74         Costco            1 minute, 23 seconds      86               6
 Wegmans                 3 seconds            1                 65         AT&T Wireless     1 minute, 23 seconds      86               69
 7-Eleven                3 seconds            1                 40         Kroger            1 minute, 28 seconds      88               2
 Ace Hardware            3.2 seconds          4                 36         Rite Aid          1 minute, 30 seconds      89               13
 Tractor Supply Co.      3.4 seconds          5                 84         Safeway           1 minute, 39 seconds      90               11
 Dollar General          4 seconds            6                 28         Macy’s            1 minute, 43 seconds      91               15
 Dillard’s               4.2 seconds          7                 59         Walgreens         1 minute, 53 seconds      92               4
 Supervalu               4.2 seconds          7                 12         Ikea              2 minutes, 11 seconds     93               89
 Advance Auto Parts      4.2 seconds          7                 61         Apple             3 minutes, 7 seconds      94               21
 AutoZone                6.2 seconds          10                58         Ruddick Corp      3 minutes, 32 seconds     95               80
 Williams-Sonoma         6.2 seconds          10                90




Ifbyphone research shows that the majority of local retailers             Brands at the bottom end of the study performed much worse
answer in less than 4 rings and the average local store                   than the average, jeopardizing their ability to convert sales and
response time is 34 seconds, although the top 10 brands for               generate brand advocacy. According to the May 2012
local response times answer customer calls in a substantially             Ifbyphone Consumer Response Survey, consumers are 59 percent
shorter amount of time.                                                   more likely to buy and 73 percent more likely to recommend a
                                                                          brand when a call is answered in less than a minute.




2012 Responsiveness Index Report                                                                                                                  2
Corporate Response Times                                                                 Number of Brands by Seconds

                                                                                    30
Brands fare much worse when it comes to the amount
                                                                                                                                                    26
of time it takes for customers to connect at the
                                                                                    24




                                                              NUMBER OF COMPANIES
                                                                                                                                                                     22
corporate level. To measure corporate response
times, secret shoppers called the most prominently                                  18
                                                                                                                                                               15
displayed 800-number listed on each brand’s website
                                                                                                                                              12
and followed the path through the corporate phone                                   12

system until they were able to conduct a live conversation.
                                                                                                       5                   5         5
                                                                                     6
While the majority of brands excel in local customer                                                             4
                                                                                              1
responses, two-thirds of the top 100 brands lack
                                                                                     0
adequate response times at the corporate level,




                                                                                          9


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requiring customers to wait between one and eight




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                                                                                                           20


                                                                                                                     30


                                                                                                                               40


                                                                                                                                         50


                                                                                                                                               60
                                                                                              9.




                                                                                                                                                        90
minutes to connect.                                                                                                    TIME TO ANSWER




2012 Responsiveness Index Report                                                                                                                                     3
Top Corporate Responses                                                       Worst Corporate Response Times
Come in Well Below the One Minute Window                                      More Than Twice the Average


 Brand               Average time to      Responsiveness   Top 100              Brand               Average time to           Responsiveness Top 100
                     reach real person,   Rank,            Brands                                   reach real person,        Rank,          Brands
                     Corporate            Corporate        Ranking                                  Corporate                 Corporate      Ranking

 Menards             9 seconds            1                46                   GameStop            3 minutes, 24 seconds     85             56
 Hy-Vee              10.2 seconds         2                54                   Dollar Tree         3 minutes, 32 seconds     86             62
 H-E-B               12.4 seconds         3                27                   Lowe’s              4 minutes, 1 second       87             8
 True Value          15.4 seconds         4                26                   CVS                 4 minutes, 11 seconds     88             7
 Save Mart           17.3 seconds         5                70                   Stater Bros Markets 4 minutes, 11.2 seconds   89             85
 Dillard’s           18.2 seconds         6                59                   Costco              4 minutes, 21 seconds     90             6
 Raley's             20.5 seconds         7                93                   Sports Authority    4 minutes, 55 seconds     91             91
 WinCo Foods         25.4 seconds         8                78                   Ikea                5 minutes, 13 seconds     92             89
 OSI (Flemming’s)    28 seconds           9                94                   Safeway             5 minutes, 37 seconds     93             11
 Supervalu           28.4 seconds         10               12                   Bed Bath & Beyond   6 minutes, 26 seconds     94             39
                                                                                Sherwin Williams    8 minutes                 95             79




The study indicates the average corporate response time is 1 minute, 42 seconds.
As with local response times, the top 10 brands for corporate response times performed much better than the average,
while the bottom 10 performed significantly worse.




2012 Responsiveness Index Report                                                                                                                   4
Response Times by Industry
Industry Average Time to Reach Corporate

                          Restaurants/Fast Food                55.58 seconds

                           Apparel & Accessories                           1 minute, 7.12 seconds

                               Online Merchants                                1 minute, 19.07 seconds

                                 Office Supplies                               1 minute, 21.2 seconds

                    Automotive Parts/Accessories                               1 minute, 22.2 seconds

                                        Grocery                                 1 minute, 27.18 seconds

                          Specialty/Non-Apparel                                   1 minute, 35.4 seconds

                          Computers/Electronics                                         1 minute, 54.37 seconds

                         Drug Store/Corner Store                                         1 minute, 57.49 seconds

                                 Mass Merchant                                                        2 minutes, 15.09 seconds

                             Books/Music/Video                                                           2 minutes, 24 seconds

                    Hardware/Home Improvement                                                               2 minutes, 36.26 seconds

                                 Sporting Goods                                                                             3 minutes,
                                                                                                                            8.15 seconds

                                                   0.0   0.5         1.0          1.5          2.0         2.5        3.0        3.5       4.0

                                                                                        TIME TO ANSWER


When viewed at the industry level, three industries performed in the top five for responsiveness in both corporate and local response times:
Restaurants/Fast Food, Office Supplies and Automotive Parts & Accessories.



2012 Responsiveness Index Report                                                                                                                 5
Industry Average Time to Reach Local

                   Automotive Parts/Accessories         9.27 seconds

                         Restaurants/Fast Food            17.56 seconds

                   Hardware/Home Improvement               18.44 seconds

                                Office Supplies             19.07 seconds

                                Sporting Goods                 27.1 seconds

                            Books/Music/Video                      29.3 seconds

                          Apparel & Accessories                      34.23 seconds

                        Drug Store/Corner Store                      36.11 seconds

                         Specialty/Non-Apparel                         37.05 seconds

                                       Grocery                         39.28 seconds

                                Mass Merchant                          39.54 seconds

                         Computers/Electronics                                 58.53 seconds

                  Housewares/Home Furnishings                                                      1 minute,
                                                                                                   10.5 seconds
                                                  0.0        0.3             0.6         0.9         1.2           1.5

                                                                             TIME TO ANSWER


The Housewares/Home Furnishings industry placed dead last in local response times with an average response time of 1 minute, 10 seconds –
more than a minute off the top local response time of 9 seconds reported by the Automotive Parts & Accessories industry.



2012 Responsiveness Index Report                                                                                                            6
About Ifbyphone®


Ifbyphone is the leading voice-based marketing automation platform that manages, measures
and automates sales and service calls — including ad tracking, lead distribution, hosted IVR,
and voice broadcasting. The Ifbyphone suite is a set of software-as-a-service applications
implemented easily across an organization to drive sales and improve customer interactions.


Companies of all sizes and across all industries use the Ifbyphone platform including
financial services, direct response, health care, home services, lead generation, marketing
services, retail, real estate, and telecommunications.




Ifbyphone, Inc.
(877) 295-5100
www.ifbyphone.com
Twitter: http://www.twitter.com/ifbyphone
Facebook: www.facebook.com/ifbyphone
LinkedIn: http://www.linkedin.com/company/ifbyphone




2012 Responsiveness Index Report

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Ifbyphone Responsiveness Index Report

  • 1. Ifbyphone Responsiveness Index Report ® October 2012 Ifbyphone® research shows that 1 in 5 retail stores take more than a minute to answer customer calls even though customers are 59 percent more likely to buy and 73 percent more likely to recommend brands that respond in sixty seconds or less.
  • 2. About the Ifbyphone® 2012 Responsiveness Index Local Response Times Brand responsiveness plays an important role in sales conversions, 25 23 22 customer retention and brand advocacy. When customers cannot 20 quickly establish a voice connection with a brand, they are likely to NUMBER OF COMPANIES abandon their attempt and move on to a competitor, regardless of 15 the benefits the brand has to offer. 13 12 10 The Ifbyphone® Responsiveness Index ranks STORES Magazine’s 8 7 2011 top 100 retail brands based on how quickly customers connect 4 5 to a live conversation when calling each brand. Response times and 3 3 rankings were measured by three independent secret shoppers who 0 measured the amount of time it took for each brand to answer 9 9 9 9 9 9 9 9 0+ 9. 9. 9. 9. 9. 9. 9. 9. 12 0- 1 -2 -3 -4 -5 -8 11 a customer phone inquiry with a live conversation at both local 9- 20 30 40 50 60 - 9. 90 and corporate locations. TIME TO ANSWER In general, most retailers are doing a good job responding to customer contacts at the local level. More than half of inbound local calls are answered in less than 20 seconds and the largest grouping of brands (23) answer in less than 10 seconds. At the other end of the spectrum, 14 brands took more than a minute to respond – an eternity for customers who are conditioned to expect immediate brand connections. 2012 Responsiveness Index Report 1
  • 3. Leading Local Stores Unresponsive Local Stores Feature Lightning Fast Responses Risk Alienating Customers Brand Average time to Responsiveness Top 100 Brand Average time to Responsiveness Top 100 reach real person, Rank, Brands reach real person, Rank, Brands Local Store Local Store Ranking Local Store Local Store Ranking RadioShack 3 seconds 1 74 Costco 1 minute, 23 seconds 86 6 Wegmans 3 seconds 1 65 AT&T Wireless 1 minute, 23 seconds 86 69 7-Eleven 3 seconds 1 40 Kroger 1 minute, 28 seconds 88 2 Ace Hardware 3.2 seconds 4 36 Rite Aid 1 minute, 30 seconds 89 13 Tractor Supply Co. 3.4 seconds 5 84 Safeway 1 minute, 39 seconds 90 11 Dollar General 4 seconds 6 28 Macy’s 1 minute, 43 seconds 91 15 Dillard’s 4.2 seconds 7 59 Walgreens 1 minute, 53 seconds 92 4 Supervalu 4.2 seconds 7 12 Ikea 2 minutes, 11 seconds 93 89 Advance Auto Parts 4.2 seconds 7 61 Apple 3 minutes, 7 seconds 94 21 AutoZone 6.2 seconds 10 58 Ruddick Corp 3 minutes, 32 seconds 95 80 Williams-Sonoma 6.2 seconds 10 90 Ifbyphone research shows that the majority of local retailers Brands at the bottom end of the study performed much worse answer in less than 4 rings and the average local store than the average, jeopardizing their ability to convert sales and response time is 34 seconds, although the top 10 brands for generate brand advocacy. According to the May 2012 local response times answer customer calls in a substantially Ifbyphone Consumer Response Survey, consumers are 59 percent shorter amount of time. more likely to buy and 73 percent more likely to recommend a brand when a call is answered in less than a minute. 2012 Responsiveness Index Report 2
  • 4. Corporate Response Times Number of Brands by Seconds 30 Brands fare much worse when it comes to the amount 26 of time it takes for customers to connect at the 24 NUMBER OF COMPANIES 22 corporate level. To measure corporate response times, secret shoppers called the most prominently 18 15 displayed 800-number listed on each brand’s website 12 and followed the path through the corporate phone 12 system until they were able to conduct a live conversation. 5 5 5 6 While the majority of brands excel in local customer 4 1 responses, two-thirds of the top 100 brands lack 0 adequate response times at the corporate level, 9 9 9 9 9 9 9 9 0+ 9. . 9. 9. 9. 9. 9. . 19 19 12 0- -2 -3 -4 -5 -8 requiring customers to wait between one and eight 9- -1 20 30 40 50 60 9. 90 minutes to connect. TIME TO ANSWER 2012 Responsiveness Index Report 3
  • 5. Top Corporate Responses Worst Corporate Response Times Come in Well Below the One Minute Window More Than Twice the Average Brand Average time to Responsiveness Top 100 Brand Average time to Responsiveness Top 100 reach real person, Rank, Brands reach real person, Rank, Brands Corporate Corporate Ranking Corporate Corporate Ranking Menards 9 seconds 1 46 GameStop 3 minutes, 24 seconds 85 56 Hy-Vee 10.2 seconds 2 54 Dollar Tree 3 minutes, 32 seconds 86 62 H-E-B 12.4 seconds 3 27 Lowe’s 4 minutes, 1 second 87 8 True Value 15.4 seconds 4 26 CVS 4 minutes, 11 seconds 88 7 Save Mart 17.3 seconds 5 70 Stater Bros Markets 4 minutes, 11.2 seconds 89 85 Dillard’s 18.2 seconds 6 59 Costco 4 minutes, 21 seconds 90 6 Raley's 20.5 seconds 7 93 Sports Authority 4 minutes, 55 seconds 91 91 WinCo Foods 25.4 seconds 8 78 Ikea 5 minutes, 13 seconds 92 89 OSI (Flemming’s) 28 seconds 9 94 Safeway 5 minutes, 37 seconds 93 11 Supervalu 28.4 seconds 10 12 Bed Bath & Beyond 6 minutes, 26 seconds 94 39 Sherwin Williams 8 minutes 95 79 The study indicates the average corporate response time is 1 minute, 42 seconds. As with local response times, the top 10 brands for corporate response times performed much better than the average, while the bottom 10 performed significantly worse. 2012 Responsiveness Index Report 4
  • 6. Response Times by Industry Industry Average Time to Reach Corporate Restaurants/Fast Food 55.58 seconds Apparel & Accessories 1 minute, 7.12 seconds Online Merchants 1 minute, 19.07 seconds Office Supplies 1 minute, 21.2 seconds Automotive Parts/Accessories 1 minute, 22.2 seconds Grocery 1 minute, 27.18 seconds Specialty/Non-Apparel 1 minute, 35.4 seconds Computers/Electronics 1 minute, 54.37 seconds Drug Store/Corner Store 1 minute, 57.49 seconds Mass Merchant 2 minutes, 15.09 seconds Books/Music/Video 2 minutes, 24 seconds Hardware/Home Improvement 2 minutes, 36.26 seconds Sporting Goods 3 minutes, 8.15 seconds 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 TIME TO ANSWER When viewed at the industry level, three industries performed in the top five for responsiveness in both corporate and local response times: Restaurants/Fast Food, Office Supplies and Automotive Parts & Accessories. 2012 Responsiveness Index Report 5
  • 7. Industry Average Time to Reach Local Automotive Parts/Accessories 9.27 seconds Restaurants/Fast Food 17.56 seconds Hardware/Home Improvement 18.44 seconds Office Supplies 19.07 seconds Sporting Goods 27.1 seconds Books/Music/Video 29.3 seconds Apparel & Accessories 34.23 seconds Drug Store/Corner Store 36.11 seconds Specialty/Non-Apparel 37.05 seconds Grocery 39.28 seconds Mass Merchant 39.54 seconds Computers/Electronics 58.53 seconds Housewares/Home Furnishings 1 minute, 10.5 seconds 0.0 0.3 0.6 0.9 1.2 1.5 TIME TO ANSWER The Housewares/Home Furnishings industry placed dead last in local response times with an average response time of 1 minute, 10 seconds – more than a minute off the top local response time of 9 seconds reported by the Automotive Parts & Accessories industry. 2012 Responsiveness Index Report 6
  • 8. About Ifbyphone® Ifbyphone is the leading voice-based marketing automation platform that manages, measures and automates sales and service calls — including ad tracking, lead distribution, hosted IVR, and voice broadcasting. The Ifbyphone suite is a set of software-as-a-service applications implemented easily across an organization to drive sales and improve customer interactions. Companies of all sizes and across all industries use the Ifbyphone platform including financial services, direct response, health care, home services, lead generation, marketing services, retail, real estate, and telecommunications. Ifbyphone, Inc. (877) 295-5100 www.ifbyphone.com Twitter: http://www.twitter.com/ifbyphone Facebook: www.facebook.com/ifbyphone LinkedIn: http://www.linkedin.com/company/ifbyphone 2012 Responsiveness Index Report