Dive Brief:
- Companies put $3.8 trillion at risk due to bad experiences, according to an analysis by Qualtrics XM Institute Tuesday. To arrive at the estimate, Qualtrics XMI surveyed nearly 24,000 consumers about their spending habits after bad experiences in 20 industries and compared those results to World Bank data from 23 countries.
- More than half of bad experiences — 53% — result in customers cutting their spending, according to the survey. That’s a 2.7 percentage point increase from last year.
- “Our research reveals that consumers are even less forgiving of poor experiences compared to a year ago,” Isabelle Zdatny, head of thought leadership at Qualtrics XMI, said via email. “Disappointed customers in 2025 are more likely to not just reduce spending but entirely stop spending with an organization altogether after a single negative interaction."
Dive Insight:
Consumers are reporting fewer bad experiences, but they are less tolerant and will take their money elsewhere when problems occur, according to Qualtrics XMI.
Consumers report that 12% of experiences were very negative, a decrease of 1.2 percentage points from last year. However, the amount of sales at risk is up from $3.7 trillion last year.
“Companies are actually delivering fewer bad experiences. So the overall quality of experience has increased, but consumers are less tolerant of even small points of friction and bumps in the road,” Zdatny told CX Dive. “I think some of the reasons for that are heightened expectations.”
Service delivery issues and communication problems were the leading causes of bad experiences across all industries. Among banks, internet providers, utilities and other “need-to-have industries,” poor communication was the No. 1 culprit, Zdatny said.
"With this in mind, it's crucial for companies to master the basics — ensure smooth communication and eliminate friction,” Zdatny said. “Don't focus on flashy new experiences without first meeting core promises; consumers value reliability over gimmicks."
Even small improvements can have a big impact on the bottom line. Qualtrics XMI found that companies that move from providing a 1- or 2-star experience to a 3-star experience saw customers’ likelihood to purchase again increase 1.6 times.
