ACSI Report: Customer Satisfaction Falls While Profits Increase
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The recently published report by the American Customer Satisfaction finds that overall customer satisfaction has declined for three quarters in a row, with the national score dropping to 76.9%. In the meantime, net profit margins have increased 3-4% over the last decade, growing at rate higher than that of the Gross Domestic Product. Does this mean that companies can cut customer service without penalty?"
According to the ACSI, “GDP and ACSI are complementary gauges of economic health. Ideally, both should move in the same direction over the medium and long term. However, the current trend shows a misalignment, with GDP increasing while customer satisfaction declines. The increase in seller pricing power has led to higher consumer prices and lower customer satisfaction. This misalignment suggests that sellers are extracting more from customers while delivering less, which is not sustainable for long-term economic health.”
The ACSI forecast predicts a 2.8% increase in consumer spending for the third quarter of 2025, despite the decline in customer satisfaction. This indicates that the misalignment between buyer utility and seller profit may continue, potentially affecting long-term profitability and economic growth.
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