Customer satisfaction stays steady

Overall U.S. customer satisfaction held fast in the first quarter of the year even as consumer spending plunged.

Following five consecutive quarters of declining satisfaction dating back to 2018, U.S. customer satisfaction held steady in the first quarter of this year, with a score of 75.4 (on a scale of 0 to 100) on the American Customer Satisfaction Index.

Because the data was collected through the end of March, the full impact of the ongoing COVID-19 pandemic does not yet appear in the results, the report noted.

Unsurprisingly, first-quarter gross domestic product (GDP) growth declined steeply, down 4.8% on an annualized basis. Consumer spending was even worse, down 7.6%.

Given that stay-at-home orders in many states did not begin until middle or late March, and that March is solely responsible for the negative quarterly spending growth (as both January and February had positive growth), it is reasonable to expect April numbers to be significantly worse.

“Historically, American Customer Satisfaction Index data often show improved customer satisfaction during difficult economic times,” said Claes Fornell, ACSI founder and chairman. “Consumers that maintain the ability to spend during these periods often find attractive prices, ample supply from sellers, and less competition from other consumers.”

It will be important to see if this trend continues during and after the COVID-19 pandemic, the report noted, as strong customer satisfaction will prove critical to how quickly consumer spending and the economy rebound.