Thursday, June 8, 2023

Customer Satisfaction Can Rise in Declining Industries

Recent American Customer Satisfaction Index survey data suggests one trend in consumer satisfaction ratings with products that are generally in decline, including fixed network voice services and linear video subscriptions: scores can improve as unhappy customers desert. 


As we have seen for fixed network voice services, the remaining customers have reasons for preferring that product. So satisfaction scores can rise. And we might be seeing precisely that pattern emerging for linear video services which continue to decline.


The unhappy customers will stop buying. As a result, satisfaction scores can climb. The other change we might note is that, as internet service providers upgrade from copper access to fiber access, satisfaction scores increase. 


source: ACSI 


But it should also be noted that virtually all products suffered significant declines in satisfaction during the Covid pandemic, so some reversion to the mean should also be expected. Prior to Covid, fixed network services satisfaction was higher than video on demand, linear TV subscriptions and internet access services, for example, and trailing mobile phone service. 


source: ACSI, Cnet 


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