Nearly half of U.S. shoppers say customer service provided by businesses is getting worse, according to results from the latest Consumer Pulse survey from GoDaddy, yet Gen Z and millennials remain more upbeat than their parents’ generations.
According to GoDaddy’s survey of 1,500 U.S. consumers, only 20% of respondents say customer service has improved recently, compared to 42% who perceive a decline in the quality of service received. Among Gen X and baby boomers, pessimism is particularly pronounced: just 12% say customer service has improved and 46% believe it has worsened.
In contrast, 29% of Gen Z and 31% of millennials say support has gotten better, suggesting the next generation of shoppers is more positive about the state of customer care.
“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,” said GoDaddy Small Business Trends Expert Amy Jennette.
“Meanwhile, older generations are losing patience, often due to experiences with unfriendly service or limited options to reach a real person,” she added. “For businesses big and small, the message is clear: customer trust is fragile, and brands must work harder to maintain it.”
The survey points to several drivers behind Americans’ shifting attitudes:
- Channel preferences are evolving: While 44% of consumers still prefer picking up the phone for support, Gen Z and Millennials are more likely to use live chat, text, or even social media direct messages. However, 86% overall say they prefer to interact with a real human rather than a chatbot.
- Rising frustration with service: Among those who feel businesses are falling short of customer service expectations, 66% of those surveyed cite rude treatment as a top gripe while 55% mention a lack of empathy. Nearly half (47%) of respondents are frustrated when there is an absence of customer service options.
- One strike and you’re out: Younger generations may be more optimistic but are also less forgiving. Nearly a quarter (24%) of Gen Z consumers say they would not give a business a second chance after a mistake, compared to 18% of Gen X and boomers.
Ways to win for small businesses
Despite these trust issues, the survey results highlight clear opportunities for small businesses to stand out. The majority of consumers (68%) polled expect small businesses to deliver the same level of digital security and professionalism as larger rivals. Flexibility when enforcing policies, such as returns, and a sense of urgency when resolving issues are among the top signs that a business puts the customer first.
“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,” Jennette said.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
