Consumer satisfaction continues to increase for ecommerce companies

The customer satisfaction score of the embattled video rental company fell 15% in the last year, says the American Customer Satisfaction Index annual eCommerce report released today. It's one of the largest drops in the indexs history.

The index, founded at the University of Michigan but now run as a privately held company, measures customer evaluations of products and services for 250 companies in 47 industries in the U.S., based on a 100-point scale. Customer satisfaction with e-commerce Web sites inched up 1% to 80.

Consumer expectation continues to increase for ecommerce companies, says Larry Freed, author of the report and CEO of consulting firm ForeSee. However, When you walk into a retail store, you don't expect to get better service, he says.

Total e-commerce sales rose 16% to $194.3 billion in 2011, say data from the U.S. Census Bureau.

Amazon remains the top online retailer in customer service, though its overall score dropped slightly. The company invests heavily in subsidizing the cost of shipping and new technology, such as its e-readers, to keep consumer prices low. "It's the gold standard for e-commerce in many different ways," says Sucharita Mulpuru, an analyst at Forrester Research.

Netflix's score reflects the turbulent changes it introduced last year by raising prices and announcing a plan, which it eventually dropped, to split its DVD and streaming rental services. Netflix shot themselves in the foot, Mulpuru says.

Newegg, an online retailer that specializes in electronics, registered the fastest rate of growth in satisfaction scores.

Online travel agencies' average score, at 78, was slightly lower than retailers. But the sluggish economy has unleashed a flood of deals and new Web features to attract more customers, says Douglas Quinby of PhoCusWright, a travel technology research firm.

Travelocity tops the category, replacing last year's leader, Expedia. Priceline, which has moved beyond its auction model to traditional travel agency businesses, registered the biggest increase in customer satisfaction among travel companies.

Customer satisfaction with online brokerages fell 3% to 76. Fidelity, Charles Schwab and E-Trade tied for the lead in the sector.