A hefty number of consumers, 79%, are canceling subscriptions, choosing lower-cost providers, and renegotiating contracts to combat inflation. The cutting back on spend is being termed “skimpflation” by Ujet Inc., which released the statistics and data insights.
Retailers not providing a good customer experience will be the first consumers leave, according to a press release on the data.
The research, which is based on data from 1,600 consumers, reveals a major shift in buyer behavior due to rising prices. Key findings include:
- 73% of consumers said they’ll first cut providers and subscriptions with the worst customer experience, user experience, app or platform.
- 66% of consumers experienced customer service skimpflation in the past six months — with 87% reporting they will spend less or stop spending money altogether at brands that skimp on customer service.
The top areas consumers are experiencing CX skimpflation are related to quality of service (60%), wait times (58%), and expertise and helpfulness (54%).
“Rising inflation — along with predictions of a looming recession — have fundamentally changed consumer confidence and purchasing power for the worse. Households are thinking twice about how they spend and are looking to quickly make cuts,” Vasili Triant, COO of UJET, a cloud contact center provider, said in the release. “If brands want to retain consumers through this economic hardship, investing in the customer experience is the only way forward. The bare minimum simply won’t cut it — skimping on customer service will cost brands customers, revenue, and loyalty.”
