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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.
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.
Chicago Tribune
22-04-2025
- Business
- Chicago Tribune
Customer satisfaction with airlines drops, study finds
A new study shows a decline in customer satisfaction with airlines and other travel businesses, according to the American Customer Satisfaction Index. The decreased satisfaction comes amid a drop in travel, a shaky economy and concerns about the future for premium travel services, the study says. The airline industry, which reached a record high last year, dropped 4% to a score of 74. Business travelers and other 'high-value' customers are driving the lower satisfaction levels, according to Forrest Morgeson, an associate professor of marketing at Michigan State University and American Customer Satisfaction Index director of research emeritus. 'With spending patterns under pressure and pricing power fading, providers are going to need to work harder to deliver consistent value,' Morgeson said in a written statement. Dallas-based Southwest Airlines took the No. 1 spot among U.S. airlines in the customer satisfaction study, soaring ahead of Alaska Airlines. Atlanta-based Delta Air Lines ranked No. 2, tied with JetBlue. American had the biggest drop, falling 8% to 73. Southwest last year announced plans to move to begin assigning seats, upsetting some of its loyal travelers who are accustomed to its longtime policy of open seating — while opening the door for others who may want seat assignments and options for premium seats. But Southwest has also been slashing its flight schedule and reducing perks for travelers, including plans to stop allowing its customers to check two bags for free, effective with bookings starting May 28. Overall, airlines got high ratings for customer satisfaction for their mobile apps, website and check-in. But they got low ratings for in-flight Wi-Fi quality, flight information, seat comfort and in-flight food and beverage. Other travel segments also saw a decline in customer satisfaction in the study, including hotels, car rentals, rideshare and online travel agencies. The American Customer Satisfaction Index Travel Study for 2025 was based on 16,771 completed surveys. Respondents were contacted at random via email from April 2024 through March 2025. The American Customer Satisfaction Index 2025 airline ranking Airline and score: Southwest, 80 Delta, 77 JetBlue, 77 Alaska, 76 American, 73 United, 73 Spirit, 69 Frontier, 65 Source: ACSI Travel Study 2025
Yahoo
24-02-2025
- Business
- Yahoo
These Are America's Top 10 Grocery Stores, According to More Than 40,000 Shoppers
How does one choose a favorite grocery store? Some shoppers may be drawn to neatly organized aisles, while others prioritize low prices—even if that means navigating a bit of chaos. With so many options, personal preference plays a key role in the decision. More than 41,000 shoppers weighed in on their top grocery retailers, and thus, the people have spoken. The American Customer Satisfaction Index (ACSI), an annual 'cross-industry tool' that measures consumer sentiment across various sectors, has released its 2025 survey findings. In the supermarket category, two beloved chains—Trader Joe's and Publix—tied for the top spot, an outcome that may not come as a surprise to their loyal customers. More than 41,000 shoppers weighed their own preferences for America's biggest grocery retailers — and thus, the people have spoken. The American Customer Satisfaction Index (ACSI), an annual 'cross-industry tool' that measures shoppers' sentiments about top retailers across various sectors, has released its 2025 survey findings. In the supermarket category, two beloved chains—Trader Joe's and Publix—tied for the top spot, an outcome that may not come as a surprise to their loyal customers. Related: On a Budget? This Tool Can Help Plan Your Grocery Lists While 65% of brands across multiple retail categories, including online, general merchandise, and specialty stores, saw a decline in satisfaction ratings, overall grocery stores bucked the trend and remained steady. In fact, ACSI notes that supermarkets saw a remarkable 4% increase in satisfaction the year before. 'Factors like mobile shopping capabilities, website quality, and perceptions of value are becoming increasingly important, especially for the 18-25 age group, who expressed significantly lower satisfaction levels compared to older demographics,' explained Forrest Morgeson, director of research emeritus at the ACSI. Read on to find out which grocery chains made the cut—perhaps including one of your favorites. This budget-minded retailer apparently has it all — at least, in the court of public opinion. It tied with Publix for the number one slot this year, rising from No. 2 in 2024 with a steady customer satisfaction score year-over-year. (Plus, ACSI says it enjoyed a several-year winning streak before it was broken in 2024.) The brand takes feedback seriously: It recently hosted its own 16th-annual customer survey for the best products on its shelves. Tied for the coveted top spot is Publix, a regional chain beloved for its low prices, deli offerings, and fried chicken. This employee-owned company (the largest in the country!) has more than 1,300 locations across the Southeastern United States, with many of them (872) found in The Sunshine State. The social media hype around its now-viral Pub Sub doesn't hurt, either. This member-only warehouse retailer began with a single Oklahoma store in 1983 and has since grown to nearly 600 locations across the United States. Sam's Club is owned by Walmart and, like other bulk retailers, is known for its food court offerings and tempting free samples. Compared to the past year, its ACSI satisfaction rating remained consistent. For shoppers craving a different checkout experience, try exploring what Wegmans is offering these days. The East Coast chain's satisfaction score jumped by a remarkable 1% (the largest increase among the top 10). It boasts a small but mighty 110 stores in just eight states, so it's even more impressive that it clinched such a high ranking. Plus, our editors love its tech-forward approach to self-checkout. Texas-based chain H-E-B tied with Costco and Publix for the top spot in the 2024 report, but its ranking has since fallen by 3 points. (It took a 4% hit in satisfaction score this year.) Meanwhile, the regional grocer is expanding its digital reach with a recently opened e-commerce fulfillment center in Houston. The chain, which was acquired by Amazon in 2017 for an estimated $13.7 billion, offers more than 500 locations across the United States. In recent years, the chain's offered up plenty of novelty (including a limited-edition pie and a curated cheese selection for the holidays) that's built an enthusiastic following. Here, grocery checkout also gets a high-tech treatment with the recent introduction of Amazon One's palm payment option. This no-frills grocer might be the most cost-effective, as its everyday low prices and minimalist approach likely helped it secure a spot in the top 10. Looking for a little inspiration? In another recent consumer survey, shoppers ranked its $12 bottle of sparkling rosé (and a slew of other Aldi-exclusive options) as the best grocery offerings overall. There's lots to love about this big box bulk retailer, from member-only savings to its almost-mythical $1.50 hot dogs. Those might not have been enough to woo shoppers this year, though: Costco's shopper satisfaction score dropped 5% in 2024, the most significant dip on the ACSI's dataset. It was previously tied for the top spot in 2024, which leaves us wondering what changed. Still, customers aren't shy about their love of the chain, and some are even waiting in a mile-long line to save on a bulk carton of eggs. Although most of ShopRite's locations are concentrated in New Jersey, that didn't stop this regional retailer from making the top 10. The chain says its approach is centered on 'families serving families,' and its customer backing remains solid: In 2024, it remained steady with a consistent score year over year. Arriving in the No. 10 spot, Target's customer satisfaction decreased slightly (2% year-over-year). Standing at nearly 2,000 locations, the mega-retailer has been in the headlines lately: Amid rising inflation last year, it promised to cut prices on 5,000 grocery items and 'common' non-perishables to ease customers' costs. Recently, though, it faced pushback after announcing it would scale back diversity, equity, and inclusion efforts. Shoppers completed this ACSI survey between January and December 2024, so we'll have to wait for a full scope of the customer response. Read the original article on Food & Wine
