The American Customer Satisfaction Index (ACSI) continues to climb, registering a second straight quarterly improvement after a period of decline preceding the recession. For the first quarter of 2009 the Index jumps 0.4% to 76.0 on ACSI’s 100-point scale, according to the report released by the University of Michigan.
When ACSI improved in the fourth quarter of 2008, it stood nearly alone among economic indicators showing positive news in the midst of the recession. Now it is joined by several other indicators. In the first quarter or the year ACSI measures customer satisfaction with the quality of products and services in utilities, transportation and warehousing, information, health care and social assistance, and accommodation and food services.
What? Airline Passenger Satisfaction Improves?
Passenger satisfaction with airlines improves for the first time since 2003, up 3% to an
ACSI score of 64, ending a downward slide that, with few interruptions, began in 1994.
High fuel price volatility, indifferent service, labor problems, congested airports and
financial challenges have plagued the industry for a long time and even with the current
improvement, airlines remain one of the lowest scoring businesses in ACSI.
American Airlines is the only major carrier to drop, falling 3% to 60. Southwest
continues to lead the industry for a sixteenth (!) straight year, up 3% to an all-time high of
81. By contrast, United Airlines anchors the bottom, unchanged at 56.
Airlines that have had the most significant customer service problems in the past
improved the most. Continental is up 10% to 68, erasing a similar decline from a year
ago, and US Airways is up 9% to 59, also erasing a similar drop in passenger
satisfaction. Delta improved 7% to 64 in the wake of its merger with Northwest, while
Northwest itself remained unchanged near the bottom of the industry at 57, just ahead of
United.
Hotels: Rooms for Rent - Cheap!
The hotel industry is facing a difficult time as consumers and businesses tighten
spending on travel. In the wake of a sharp downturn in business, budget hotels have
fared the best by offering low rates and even adding a few perks to boot. For the more
up-scale hotels, the picture is more mixed.
Hilton leads the category, up 1% to 79, followed closely by Marriott, down 1% to 77.
Two economy hotels, Best Western and Choice Hotels, surge to the middle of the
industry, up 7% to 76 and 75 respectively by keeping rates low and maintaining service.
Hyatt, historically among the industry leaders, drops 5% to 74 by lowering both price and
service.
Telecom and Cable: Still Some Potholes on the Information Highway
Traditional local and long distance service is down 1% to 72, a year after reaching its
highest score since 1999. AT&T declines 5% to 71, losing most of the ground it gained in
2008. Cox Communications holds its own at 74 to lead the category, while Qwest slips
3% to 71. Comcast’s digital voice service falls 3% to 67 to remain at the bottom.
Customer satisfaction with wireless telephone service reaches a new all-time high for the
third consecutive year at 69. Verizon Wireless jumps 3% to 74 to continue its lead over
the industry. Sprint Nextel makes the biggest gain of any company this quarter, up 13%
to 63, though some of the increase is likely to be due to many departing and not very
satisfied customers. Sprint Nextel remains at the bottom of the industry in customer
satisfaction.
AT&T Mobility falls down 6% to 67. Paradoxically, its success with the iPhone may have
contributed to the declining customer satisfaction. As the wireless carrier has attracted
iPhone customers with more intensive data needs, the strain on the network has created
complaints about slow and spotty performance.
Customer satisfaction with cable and satellite TV declines, falling 2% to 63, although
some of the large companies improve. Satellite TV still leads the way, with DirecTV well
above all measured companies, up 4% to 71. The other satellite provider, DISH
Network continues its slide, falling 2% to 64. Two years ago the satellite companies
were tied at 67; now a 7-point gap separates them.
Cox Communications leads all cable TV providers for a sixth straight year and reaches
an all-time high at 66, but Comcast makes an even bigger leap, up 9% to 59. Comcast
has apparently benefited by monitoring customer feedback on blogs and via the social
networking site Twitter in order to identify disgruntled customers and address customer
dissatisfaction on a one-to-one basis. Charter Communications is down 6% to 51, a new
record low for any company in the 15-year history of ACSI. Its stock has been delisted
and the company is facing serious financial challenges.
Restaurants: Fast Food and Full-Service Battle for Consumer Dollars
Fast food is unchanged at 78, matching its highest score ever, while full-service
restaurants jump 5% to 84. As the recession has driven business away from the pricier
sit down restaurants to the cheaper fast food alternatives, full-service restaurants have
had to try harder to compete. Similar to airlines and some of the hotels, service to
customers has improved, at least in part, because there are fewer customers to serve,
but it is also true that there have been menu changes to the liking of diners and a
lowering of price in some instances.
Domino’s is on top at 77. Wendy’s and Taco Bell make the biggest gains, each up 4%
to 76 and 73 respectively. McDonald’s continues to do well, passing both Burger King
and KFC, up 1% to an all-time high of 70. Over the past 4 years, the world’s largest fast
food chain has improved customer satisfaction more than any other fast food business
and at a rate more than 4 times the industry average.
Utilities: Restoring the Power
Customer satisfaction with energy utilities is steady at 74, tying its highest level since
2000. Sempra Energy leads at 80, unchanged from a year ago. MidAmerican Energy
(+1%) and PPL Corporation (+1%) follow closely at 79. At the other end of the spectrum,
three utilities fall below 70. Pepco Holdings falls 1% to 68, while Ameren leaps by 6%
also to a score of 68. Consolidated Edison is at the bottom of the industry with a score
of 66. While not the only factor, a key to high levels of customer satisfaction seems to lie
in the utility’s power restoration abilities.
More information on customer service and satisfaction can be found at http://www.supportindustry.com/
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