According to research released by Roy Morgan in the 12 months to September 2015, 1,121,000 Australians aged 14 and over shopped at Dick Smiths in any four weeks, with 82% of them reporting that they were satisfied with their retail experience. Both of these figures are down since September 2011, when some 1,511,000 shoppers passed through the check-outs in an average four weeks, with an 83% satisfaction rating.
“Dick Smith’s current situation is attracting a flurry of media analysis, with experts critiquing everything from its outdated stock and recent expansion to unrealistic investor expectations. While our data cannot shed any light on the company’s business practices, their consequences can certainly be seen in Dick Smith’s below-average customer satisfaction rating and shrinking customer base.” Michele Levine, CEO, Roy Morgan Research commented.
Ms Levine pointed out there is no doubt that the electronics retail sector has become increasingly competitive, amid the rising popularity of online shopping and wavering consumer confidence — and Dick Smith isn’t the only retailer to lose shoppers over the last few years. Betta Home Living, Harvey Norman and Retravision have also seen their customer numbers fall (though it should be noted that Betta still managed to increase its satisfaction rating from 83% to 93% during this time).

how Dick Smith compares to the competition

Ms Levine explained that in such a challenging retail environment, a store’s ability to satisfy its customers is crucial to its survival. Dick Smith’s customer satisfaction rating has been lower than any of the other five electronics retailers measured by Roy Morgan Research for more than a year, after peaking at 85% during the 12 months to September 2012 (which put it in fourth position ahead of Betta Home Living and Harvey Norman). Levine added that another factor that has changed the face of the Australian consumer electronics market is former music-retailer JB Hi-Fi’s entrance into the field. As of September 2015, some 2,906,000 customers were shopping at the store in an average four-week period, with a customer satisfaction rating of 91%.
“As mentioned above, Dick Smith is not the only electronics retailer to lose customers over the last few years; nor is its slipping customer satisfaction rating unique. Many businesses operating in this field could learn a lesson or two from Dick Smith’s downfall, starting with the importance of always ensuring the customer is happy. Offering the right stock at the right price, providing service that’s second to none: anything that boosts customer satisfaction is always going to be good for business.” Ms Levine commented.