Latest news with #AmericanCustomerSatisfactionIndex
CNET
20-05-2025
- Business
- CNET
A New Report Shows That Most People Are Happy With Fiber Internet, but Here's Why 5G Is Turning Heads
The American Customer Satisfaction Index released its annual survey, based on over 27,000 customer interviews, revealing how customers really feel about internet service providers. For the first time, we're seeing certain non-fiber providers, such as T-Mobile 5G Home Internet, match in customer satisfaction with fiber leader AT&T. This trend probably has a lot to do with the quality of fiber internet deteriorating in the past year, despite most people being happier with this service. More on that in a bit. The good news for ISPs -- things are trending up... slightly. Overall, ISPs scored 72 on the ACSI's 100-point scale -- a one-point increase from last year, four points over 2023 and the highest score since the ACSI started measuring ISPs in 2013. The 2025 report includes benchmarks for new industries such as Smartwatches. This provides an overarching idea of how internet providers compare with other industries -- and it doesn't look good. Overall, internet service providers still rank at the bottom of the index, just ahead of US Postal Service and subscription TV services, but below notably unpopular industries such as airlines, energy utilities, food delivery and social media companies. Fiber customer satisfaction at a glance Americans with fiber internet service are more satisfied than those using other connection types, based on the ACSI's latest data. ASCI If you dig into the numbers -- and we have, given that we incorporate them into our methodology for reviewing internet providers -- they tell a more nuanced story. The ACSI first broke out customer satisfaction into fiber and non-fiber categories in 2023, and that continues in 2025. Unsurprisingly, ISPs that offer fiber internet service, which is faster and more consistent than other types of internet connections, scored significantly higher, notching a 75 compared with 70 for non-fiber ISPs. Still, as of June 2024, only over 46% of households have access to fiber, according to the latest data from the Federal Communications Commission. Fiber has been steadily growing over the past couple of years. In a recent report published by the FCC (PDF), as of June 2024, over 73,000 locations in the US are equipped with fiber in the home. While national and regional telecoms continue to expand their reach, fiber's rollout has been more concentrated in larger cities and metro areas. Back to the latest ACSI report: While AT&T Fiber went down by three points compared with the previous year, it did not break its three-year-long streak as the ISP with the highest customer satisfaction score, topping popular service Google Fiber and Verizon Fios, tied in second and third place with a score of 76. These findings align closely with our perspective: Verizon Fios, Google Fiber and AT&T top our overall list of fiber providers, though our recommendations vary by specific location. We have, after all, reviewed internet service providers in over 400 cities in the US. CNET has found fiber to be more reliable, less susceptible to disruptions during peak usage times and, most importantly, extremely fast for uploading and downloading data. In fact, many national ISPs now boast multi-gigabit plans, and Ziply Fiber even has a 50-gigabit tier. I don't know that anyone needs service that fast, but it sure sounds cool. Locating local internet providers Though fiber plans tend to be more expensive than cable internet service, the price gap is closing. Cable internet service plans usually start around $25 to $30 per month; fiber plans typically start at approximately $50 but can be considerably more expensive. That noted, fiber generally delivers a lower cost per megabit than other connection types. Is fiber internet still the gold standard of broadband? Users complain that the quality of fiber internet has decreased in the past year. ACSI Here at CNET, we consider fiber to be the gold standard of broadband, offering you high-speed and consistent internet. Though the latest data from the ACSI suggests that the quality of fiber may not be as satisfactory to customers. Home internet customers are complaining about their service at a higher rate, as seen at 27% for fiber customers and 26% for non-fiber customers. The image above shows that the quality of fiber internet has slightly gone down in terms of reliability, ability to limit disruptions and network outages and performance during peak outages -- few of which are what fiber promises. Naturally, we can attribute these complaints to the rising costs of home internet. In 2024, customers reported paying an average of 63% more for their internet service. If fiber promises to distinguish itself as the gold standard of broadband, then ISPs have to lower costs and improve service quality. Non-fiber customer satisfaction is trending up For the first time ever, T-Mobile 5G Home Internet tied in score with AT&T Fiber. ACSI There's all this talk about fiber internet in the world of broadband, but customer satisfaction numbers among non-fiber providers are trending up. This has mostly to do with the increased popularity of 5G Home Internet. We're looking at you, T-Mobile. This 5G provider scored three points higher than it did in the past year, matching it with AT&T Fiber with a score of 78. Verizon 5G Home Internet is no slouch either, coming in second. While fiber providers generally lead with an overall better score, 5G satisfaction scores are not that far behind. The ACSI report highlights that non-fiber customers are more satisfied with the way their complaints are resolved in comparison to fiber providers. The 2024 JD Power survey also shows that customers are choosing 5G Home Internet due to its affordability and accessibility. The two companies' 5G fixed wireless services consistently rank among the best services in many of the hundreds of cities CNET has evaluated as well. While fiber connections are currently scarce throughout the country, 5G becomes an alternative for those without access to wired internet. The two companies' 5G fixed wireless services consistently rank among the best services in many of the hundreds of cities CNET has evaluated as well. Regional provider Brightspeed finally appeared in this year's ACSI numbers. But it performed at the very bottom with the lowest ACSI score in 2025, a whopping 53 out of 100. It's hard to tell exactly why it scored so low, but the ACSI findings note that call center satisfaction was the lowest-rated area among all ISPs, so that certainly figured into the poor ranking. Fiber vs. non-fiber internet: What do users think? ACSI The latest ACSI numbers corroborate that fiber internet providers generally lead in customer satisfaction. However, the image above suggests that the gap between non-fiber and fiber Wi-Fi experience has narrowed. This can be seen with the recent 5G home internet boom, with providers like T-Mobile and Verizon becoming an enticing option for customers. Even more so, the quality of service among non-fiber providers has improved in the past year. Although improved from last year, ISPs' customer satisfaction numbers still live near the bottom of the latest ACSI rankings by industry. ACSI As always, the ACSI isn't the only benchmark for customer satisfaction. We'll continue to monitor how ISPs are doing with customers throughout the year, including Ookla's findings on the second half of 2024 and the J.D. Power annual survey. (Ookla is owned by the same parent company as CNET, Ziff Davis.)
Yahoo
20-05-2025
- Business
- Yahoo
Cell Phone Satisfaction Hits Decade Low Mark as AI Promises Fall Short, ACSI Data Show
ANN ARBOR, Mich., May 20, 2025--(BUSINESS WIRE)--New technology promises a smarter future, but customers aren't impressed yet. After reaching an all-time high last year, user satisfaction with cell phones tumbles 4% to a decade-low score of 78 (out of 100), according to the American Customer Satisfaction Index (ACSI®) Telecommunications, Cell Phone, and Smartwatch Study 2025, as AI features struggle to shift consumer priorities. "Brands keep racing to add new capabilities, yet customers still judge smartphones by the fundamentals," says Forrest Morgeson, Associate Professor of Marketing at Michigan State University and Director of Research Emeritus at the ACSI. "Only when companies strengthen the essentials — battery life, call reliability, and ease of use — does innovation truly deliver lasting satisfaction." This isn't limited to cell phones. Wireless phone service and internet service providers (ISPs) must deliver on reliability and provide an efficient way to reach a helpful contact center (when needed). Smartwatch manufacturer satisfaction is also sensitive to basics like battery life, call quality, and watch design. Companies that continue to focus on these important underpinnings are better situated to maintain satisfied and loyal customers. Apple and Samsung widen cell phone lead despite minor skid Hampered by low upgrade rates and steep prices, all cell phone manufacturers suffer satisfaction declines from the year before. Leaders Apple and Samsung put more distance between themselves and the rest of the pack despite each inching back 1% to an ACSI score of 81. Google and Motorola both decrease 3% and remain tied at 75. The collection of smaller manufacturers stays in last place after tumbling 6% to a score of 68. The chasm between phones with and those without 5G capabilities widens. Satisfaction among those with a 5G-enabled phone slides just 2% and remains high with an overall score of 80. Those using a phone with legacy technology are far less satisfied at 68 — a 7% decline year over year. At the manufacturer level, Samsung outperforms Apple by a slim margin in the 5G category. Fiber and non-fiber ISP leaders AT&T and T-Mobile share same score for first time Satisfaction with ISPs, which includes both fiber and non-fiber services, improves 1% to an ACSI score of 72. Fiber declines 1%, though still the more satisfying experience at 75, while the non-fiber segment improves 3% to a score of 70. This gap is 3 points narrower than in 2024. AT&T Fiber (down 3% to 78) leads for the third straight year, but the fiber segment is only growing more competitive. Google Fiber (unchanged) now ties Verizon Fios (down 1%) at 76, while Xfinity Fiber is not far off, unchanged at 75. In a departure from the segment's downward trend, Optimum Fiber's satisfaction improves 8% to a score of 71, driven primarily by its efforts to add value by strengthening the quality of its customer service. The smaller group of fiber ISPs, however, finish in last place after suffering a 9% decline to 70. All elements of the fiber customer experience have worsened over the past year, with notable decreases in measures relating to the quality of internet service. Non-fiber segment leader T-Mobile climbs 3% to 78, matching the score of fiber leader AT&T. T-Mobile succeeds in improving the consistency of its non-fiber service while adding value through improved customer service and plan options. As in the fiber segment, Verizon's non-fiber service (up 4% to 77) is a close second place, illustrating again how the margins between top performers are narrowing. Kinetic by Windstream shows impressive movement this year, surging 11% to an ACSI score of 62. By making significant improvements in practical service metrics, Windstream drives customer perceptions of the value of its Kinetic service higher. Many of the non-fiber practical service metrics — those relating to the actual performance of the internet service — see only slight improvement or no change at all. The ACSI also measures key aspects of the in-home Wi-Fi experience for both fiber and non-fiber customers. While fiber providers still give customers the most satisfying Wi-Fi experience, the gap between core elements of the fiber and non-fiber experience narrows over the past year. Consumer Cellular tops wireless phone service for fourth straight year The wireless phone service industry declines 1% to an ACSI score of 75. The industry is led by value mobile virtual network operators (MVNOs), which slide 3% to 78. Mobile network operators (MNOs) are next at 75 (down 1%), followed by full-service MVNOs, which decrease 3% to 74. T-Mobile leads the MNO category at 76 despite slipping 1% year over year. Second place Verizon is the only measured brand to improve in 2025, up 1% to a score of 75. AT&T is next, falling 5% to 74, followed by U.S. Cellular, which stumbles 3% to 72. In addition to measuring customer satisfaction for mobile network operators, the ACSI provides two unique measures: call quality and network capability. AT&T suffers the largest decrease in both, tumbling 6% to a score of 77 for call quality and 8% to 76 for network capability. Consumer Cellular, a value MVNO, is the wireless service carrier with the highest satisfaction in the industry. Despite dropping 4% to a score of 82, Consumer Cellular customers' strong perceptions of value and quality keep satisfaction high. Similarly, Spectrum Mobile leads the full-service category at 78. The carrier is bolstered by improvements both in-store and in customer contact channels. Samsung outperforms Apple in smartwatch debut In its first year of measurement, the smartwatch industry premieres with an ACSI score of 77. Samsung smartwatch satisfaction (83) outshines Apple (80) by 3 points after promises of the Apple Watch Ultra 3 shifted from 2024 to late 2025. Fitbit finishes in third with a score of 72. Smartwatches are rated highest for their physical traits, which include durability (81), design (81), and screen resolution/quality (80). However, the service experience is noticeably lower compared to cell phone users. The timeliness of the repair (75), courtesy and helpfulness of the technician (73), and ease of arranging service (73) are the lowest-rated aspects of the customer experience. The ACSI Telecommunications, Cell Phone, and Smartwatch Study 2025 is based on 27,494 completed surveys. Customers were chosen at random and contacted via email between April 2024 and March 2025. Download the full study and follow the ACSI on LinkedIn and X at @theACSI. No advertising or other promotional use can be made of the data and information in this release without the express prior written consent of ACSI LLC. About the ACSI The American Customer Satisfaction Index (ACSI®) has been a national economic indicator for over 25 years. It measures and analyzes customer satisfaction with about 400 companies in about 40 industries and 10 economic sectors, including various services of federal and local government agencies. Reported on a scale of 0 to 100, scores are based on data from interviews with roughly 200,000 customers annually. For more information, visit ACSI and its logo are Registered Marks of American Customer Satisfaction Index LLC. View source version on Contacts Christian Rizzochristian@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
20-05-2025
- Business
- Business Wire
Cell Phone Satisfaction Hits Decade Low Mark as AI Promises Fall Short, ACSI Data Show
BUSINESS WIRE)--New technology promises a smarter future, but customers aren't impressed yet. "Only when companies strengthen the essentials — battery life, call reliability, and ease of use — does innovation truly deliver lasting satisfaction." After reaching an all-time high last year, user satisfaction with cell phones tumbles 4% to a decade-low score of 78 (out of 100), according to the American Customer Satisfaction Index (ACSI ®) Telecommunications, Cell Phone, and Smartwatch Study 2025, as AI features struggle to shift consumer priorities. "Brands keep racing to add new capabilities, yet customers still judge smartphones by the fundamentals," says Forrest Morgeson, Associate Professor of Marketing at Michigan State University and Director of Research Emeritus at the ACSI. "Only when companies strengthen the essentials — battery life, call reliability, and ease of use — does innovation truly deliver lasting satisfaction." This isn't limited to cell phones. Wireless phone service and internet service providers (ISPs) must deliver on reliability and provide an efficient way to reach a helpful contact center (when needed). Smartwatch manufacturer satisfaction is also sensitive to basics like battery life, call quality, and watch design. Companies that continue to focus on these important underpinnings are better situated to maintain satisfied and loyal customers. Apple and Samsung widen cell phone lead despite minor skid Hampered by low upgrade rates and steep prices, all cell phone manufacturers suffer satisfaction declines from the year before. Leaders Apple and Samsung put more distance between themselves and the rest of the pack despite each inching back 1% to an ACSI score of 81. Google and Motorola both decrease 3% and remain tied at 75. The collection of smaller manufacturers stays in last place after tumbling 6% to a score of 68. The chasm between phones with and those without 5G capabilities widens. Satisfaction among those with a 5G-enabled phone slides just 2% and remains high with an overall score of 80. Those using a phone with legacy technology are far less satisfied at 68 — a 7% decline year over year. At the manufacturer level, Samsung outperforms Apple by a slim margin in the 5G category. Fiber and non-fiber ISP leaders AT&T and T-Mobile share same score for first time Satisfaction with ISPs, which includes both fiber and non-fiber services, improves 1% to an ACSI score of 72. Fiber declines 1%, though still the more satisfying experience at 75, while the non-fiber segment improves 3% to a score of 70. This gap is 3 points narrower than in 2024. AT&T Fiber (down 3% to 78) leads for the third straight year, but the fiber segment is only growing more competitive. Google Fiber (unchanged) now ties Verizon Fios (down 1%) at 76, while Xfinity Fiber is not far off, unchanged at 75. In a departure from the segment's downward trend, Optimum Fiber's satisfaction improves 8% to a score of 71, driven primarily by its efforts to add value by strengthening the quality of its customer service. The smaller group of fiber ISPs, however, finish in last place after suffering a 9% decline to 70. All elements of the fiber customer experience have worsened over the past year, with notable decreases in measures relating to the quality of internet service. Non-fiber segment leader T-Mobile climbs 3% to 78, matching the score of fiber leader AT&T. T-Mobile succeeds in improving the consistency of its non-fiber service while adding value through improved customer service and plan options. As in the fiber segment, Verizon's non-fiber service (up 4% to 77) is a close second place, illustrating again how the margins between top performers are narrowing. Kinetic by Windstream shows impressive movement this year, surging 11% to an ACSI score of 62. By making significant improvements in practical service metrics, Windstream drives customer perceptions of the value of its Kinetic service higher. Many of the non-fiber practical service metrics — those relating to the actual performance of the internet service — see only slight improvement or no change at all. The ACSI also measures key aspects of the in-home Wi-Fi experience for both fiber and non-fiber customers. While fiber providers still give customers the most satisfying Wi-Fi experience, the gap between core elements of the fiber and non-fiber experience narrows over the past year. Consumer Cellular tops wireless phone service for fourth straight year The wireless phone service industry declines 1% to an ACSI score of 75. The industry is led by value mobile virtual network operators (MVNOs), which slide 3% to 78. Mobile network operators (MNOs) are next at 75 (down 1%), followed by full-service MVNOs, which decrease 3% to 74. T-Mobile leads the MNO category at 76 despite slipping 1% year over year. Second place Verizon is the only measured brand to improve in 2025, up 1% to a score of 75. AT&T is next, falling 5% to 74, followed by U.S. Cellular, which stumbles 3% to 72. In addition to measuring customer satisfaction for mobile network operators, the ACSI provides two unique measures: call quality and network capability. AT&T suffers the largest decrease in both, tumbling 6% to a score of 77 for call quality and 8% to 76 for network capability. Consumer Cellular, a value MVNO, is the wireless service carrier with the highest satisfaction in the industry. Despite dropping 4% to a score of 82, Consumer Cellular customers' strong perceptions of value and quality keep satisfaction high. Similarly, Spectrum Mobile leads the full-service category at 78. The carrier is bolstered by improvements both in-store and in customer contact channels. Samsung outperforms Apple in smartwatch debut In its first year of measurement, the smartwatch industry premieres with an ACSI score of 77. Samsung smartwatch satisfaction (83) outshines Apple (80) by 3 points after promises of the Apple Watch Ultra 3 shifted from 2024 to late 2025. Fitbit finishes in third with a score of 72. Smartwatches are rated highest for their physical traits, which include durability (81), design (81), and screen resolution/quality (80). However, the service experience is noticeably lower compared to cell phone users. The timeliness of the repair (75), courtesy and helpfulness of the technician (73), and ease of arranging service (73) are the lowest-rated aspects of the customer experience. The ACSI Telecommunications, Cell Phone, and Smartwatch Study 2025 is based on 27,494 completed surveys. Customers were chosen at random and contacted via email between April 2024 and March 2025. Download the full study and follow the ACSI on LinkedIn and X at @theACSI. No advertising or other promotional use can be made of the data and information in this release without the express prior written consent of ACSI LLC. About the ACSI The American Customer Satisfaction Index (ACSI ®) has been a national economic indicator for over 25 years. It measures and analyzes customer satisfaction with about 400 companies in about 40 industries and 10 economic sectors, including various services of federal and local government agencies. Reported on a scale of 0 to 100, scores are based on data from interviews with roughly 200,000 customers annually. For more information, visit ACSI and its logo are Registered Marks of American Customer Satisfaction Index LLC.
Business Wire
13-05-2025
- Business
- Business Wire
U.S. Customer Satisfaction Falls
BUSINESS WIRE)--American Customer Satisfaction Index: The American Customer Satisfaction Index was developed at the University of Michigan by a prominent group of scientists under the leadership of Claes Fornell, the Distinguished Donald C. Cook Professor of Business (Emeritus). Dr. Fornell is a world-leading scholar in multivariate statistical models with latent variables and in customer satisfaction measurement and analysis. The group includes former University of Michigan faculty, Michael D. Johnson, now Professor and Marketing Department Chair, University of Wisconsin, and Gene Anderson, now Dean of the Pittsburgh School of Business. Important research contributions were also provided by David F. Larcker, the James Irvin Miller Professor of Accounting at Stanford University, and former University of Michigan faculty, Birger Wernerfelt, now the JC Penney Professor of Management at MIT. Due to the commercial applicability of ACSI, the University of Michigan's Technology Transfer Unit later shifted its ownership to its developer, Dr. Fornell. Expand As the gross domestic product (GDP) contracted and consumer sentiment fell, overall U.S. customer satisfaction declined 0.4% in the first quarter of 2025 to a score of 77.0 (on a scale of 0 to 100), according to the American Customer Satisfaction Index (ACSI ®). The Index has remained flat or dropped in four consecutive quarters — something that hasn't occurred since the COVID-19 crisis. It is now down 1.3% for the past year, led by slumps for the U.S. Postal Service, cell phones, and apparel. ACSI measures quality of economic output (relative to price). GDP tracks quantity of economic output. These two statistics often move together, but not always. This time, both are negative, but their current relationship is spurious. GDP contracted due to a major surge in imports from inventory stockpiling, triggered by a threat of higher tariffs. Customer satisfaction is of no relevance in that context but has declined due to price increases and inconsistent service quality. Weakening customer satisfaction has a negative effect on demand. Strengthening the buyer-seller relationship is important because it leads to exponentially increasing profits — especially at high levels of customer retention — and much improved cash flow stability. This is especially relevant in industries where customer satisfaction elasticity of demand is high, such as subscription TV, credit unions, internet service providers, banks, wireless phone services, and financial advisors, but less so for supermarkets, gas stations, and social media. The U.S. Postal Service, cell phones, apparel, and online investment companies are among those that declined the most in customer satisfaction over the past year and also most at risk for revenue growth uncertainty. 'The general lack of strong business-customer relationships in the U.S. is problematic,' said Claes Fornell, founder of the ACSI and the Distinguished Donald C. Cook Professor (Emeritus) of Business Administration at the University of Michigan. 'Customer satisfaction has not improved substantially over the past 12 years, despite vast corporate investments to do just that. Extrapolating the ACSI trajectory from the first decade of this century, customer satisfaction would be almost 6% higher than it is today and there would be much higher customer loyalty to boot. There is no evidence that inflated consumer expectations are to blame: The expectations-satisfaction gap has remained fairly constant over time. The problem lies in poor performance metrics and data analytics.' The metrics generally fail in separating data noise from information. The data analytics are ill-suited for the many idiosyncrasies in customer data, making resource allocation for improving customer relationships more difficult. While analytical rigor and science-based measurement instruments are often absent, they are necessary for realizing the financial benefits from strong customer relationships: high returns/low risk. For more, follow the American Customer Satisfaction Index on LinkedIn and X at @theACSI or visit No advertising or other promotional use can be made of the data and information in this release without the express prior written consent of ACSI LLC. About the ACSI The American Customer Satisfaction Index (ACSI ®) has been a national economic indicator for over 25 years. It measures and analyzes customer satisfaction with approximately 400 companies in about 40 industries and 10 economic sectors, including various services of federal and local government agencies. Reported on a scale of 0 to 100, scores are based on data from interviews with roughly 200,000 responses annually. For more information, visit ACSI and its logo are Registered Marks of American Customer Satisfaction Index LLC.
Miami Herald
25-04-2025
- Business
- Miami Herald
This airline scored best in customer satisfaction, study says. How did others do?
As the summer travel season draws near, millions of Americans are expected to fly. Recent data shows passenger satisfaction has taken a dive, however. Satisfaction with U.S. airlines fell 4% year-over-year after the industry scored a record high in 2024, sliding from 77 to 73 out of 100, according to an American Customer Satisfaction Index travel survey. Some carriers fared better than others when it came to keeping customers happy, as Southwest Airlines roared to the top of the list with an ACSI score of 80, the report showed. The Dallas-based airline was one of two carriers to see improvement, bumping Alaska Airlines from the No. 1 spot, according to an ACSI news release. Delta and JetBlue held steady at 77 while Alaska fell to 76 from 82, a 7% downturn, data show. The survey, published April 22, measured travelers' experience across multiple industries including airlines, lodging and car rentals, the release said. Results are based on polls conducted over a year ending in March 2025, and scores are measured out of 100. Customer satisfaction fell across the board, with researchers citing 'softening demand' and economic uncertainty, data show. 'Across much of the travel segment, the satisfaction drop is being driven not by bargain hunters, but by business travelers and other high-value customers,' Forrest Morgeson, director of research emeritus at the ACSI, said in the release. 'With spending patterns under pressure and pricing power fading, providers are going to need to work harder to deliver consistent value across all customer segments,' he said. Among U.S. airlines, customer experience benchmarks ranged from the quality of carrier's in-flight Wi-Fii and ease of check-in, to cleanliness of the flight cabin and baggage handling, according to the report. American Airlines saw the biggest dip in overall satisfaction among its competitors, sliding 8% to 73 from 79 the year prior, according to the ACSI survey. The report pointed to higher rates of passengers unexpectedly bumped from their flights compared to other airlines, drawing the ire of customers already frustrated by the carrier's 'frequency of the delayed, interrupted, and changed flights.' 'American's lost ground among these customers also results from the rollout of its new loyalty program, which was generally poorly received,' according to the index.
