42% of US Consumers Say Customer Service Is Declining, Survey

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New data reveals a growing gap in how generations view customer service. The world of customer service is rapidly changing, and the latest findings from GoDaddy’s Consumer Pulse survey reveal a trend that should be on every business owner’s radar. Nearly half of U.S. shoppers now believe customer service is getting worse, but the story deepens when you look at the generational divide shaping these opinions.

The Numbers Tell a Stark Story

According to GoDaddy’s in-depth survey of 1,500 U.S. consumers, just 20% of respondents feel customer service has improved recently, while a significant 42% think service quality has declined. That’s bad news for brands of all sizes, but the most striking details emerge when you see how each age group feels.

Among Gen X and Baby Boomers, pessimism runs especially high: only 12% say customer service has improved, and 46% report it’s gotten worse. These older generations are increasingly out of patience with negative, impersonal service.

By contrast, younger generations offer a more positive viewpoint. Some 29% of Gen Z and 31% of Millennials say support has improved, a notable difference compared to their parents. These digital natives may be hopeful, but that optimism comes with much higher expectations for the companies they support. 

The Generational Service Divide

Amy Jennette, GoDaddy Small Business Trends Expert, observed, “The generational divide is striking. Young consumers are more likely to give businesses the benefit of the doubt, but they also have higher expectations for speed, flexibility, and friendliness,” she said.

She continued, “Meanwhile, older generations are losing patience, often due to experiences with unfriendly service or limited options to reach a real person. For businesses big and small, the message is clear: customer trust is fragile, and brands must work harder to maintain it,” said.

Key Service Challenges Facing Businesses

The survey brings to light three main drivers behind Americans’ shifting attitudes toward customer service:

Evolving Channel Preferences: While 44% of all consumers still prefer using the phone for support, younger generations are moving more toward live chat, text, and direct messages on social media. Even more revealing, 86% across all generations prefer interacting with a real human, not a chatbot.

Growing Service Frustrations: Among customers dissatisfied with business service, 66% complain about rude treatment, and 55% mention a lack of empathy. Plus, nearly half (47%) are frustrated when they can’t even find customer service options.

The One-Strike Rule: Despite their optimism, younger generations can be less forgiving. Nearly a quarter (24%) of Gen Z shoppers say they wouldn’t give a business a second chance after a single mistake; only 18% of Gen X and Boomers hold this strict standard. 

How Small Businesses Can Stand Out

Despite these hurdles, survey findings reveal strategies for small business leaders who want to go the extra mile. A notable 68% of consumers expect small enterprises to deliver the same digital security and professionalism as major companies. That opens doors for smaller businesses to compete based on quality and care, rather than just size.

Flexibility with policies like returns and showing urgency in resolving issues are both powerful signals that a business truly cares about its customers.

As the survey’s analysis explains, “Small businesses can build authentic relationships by responding to customers. The right technology, especially using the latest almost-magical AI capabilities, makes this possible, even for businesses without large support teams,” said.

Technology as the Bridge

The way forward is clear: embrace technology to address today’s customer care demands. Communication tools like GoDaddy Conversations pull together web chat, social messages, and email into a single inbox, empowering businesses to reply quickly and personally. For entrepreneurs juggling endless responsibilities, AI-powered tools help keep customers happy and engaged, even without a big support staff.

The Takeaway

The latest Consumer Pulse survey shows that consumers are judging service more critically than ever, and the stakes are rising. Younger shoppers may be more upbeat, but they’re less willing to forgive mistakes. Older generations, meanwhile, are weary of poor support and limited options.

Companies that focus on genuine human interaction, supported by smart technology, will be best positioned to keep customers loyal, no matter how expectations continue to evolve.

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