American customer satisfaction started a notable turnaround from its record low in Q2 2022 after a gradual decline since late 2018—for the fifth consecutive quarter.

Trusted Insights for What’s Ahead™

Interestingly, this period of increasing customer satisfaction also saw several labor market metrics improve, which could suggest that well-staffed, happy teams might benefit customer experience.

To highlight some data, companies have had less difficulty filling jobs since the May 2022 peak, labor force participation among 25-54-year-olds has been rising, and the job quits rate has fallen from its COVID-19 peak. In addition, employee satisfaction is at a record high, according to the Job Satisfaction 2023 report, mainly driven by work-life balance and workload.

Finding the right balance of automation and human service

Drivers of customer satisfaction generally relate to product/service, price, and customer service. The latter has been increasingly automated, driven by improved technological advancements, to save on salary expenses and deal with labor shortages. But this might have affected customer satisfaction: our research shows that automated systems are customers' biggest customer service frustration.

Investing in employees can support customer experience and financial value

• Employing human service associates can delight customers—if qualified employees can be found in tight job markets.
• AI can support customer service associates, especially less experienced ones, making their work better, for example by more successfully resolving issues and doing so faster, thus increasing satisfaction with their work, also by being treated better by customers.  
• A people-focused culture helps attract and retain talent and thus enhance customer experience, loyalty, word-of-mouth, willingness to pay, brand value, and stock returns.
• Showcasing initiatives that highlight a company as a good employer can increase brand appeal for customers. Consumers appreciate brands that treat employees well, benefiting brand perception and purchases if such efforts are communicated well.

Read more:

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Job Satisfaction 2023: US Worker Satisfaction Continues to Increase