Do Your Customers Have "Skimpflation" Fatigue?

A whopping 79% of consumers will take action to combat rising costs, including canceling subscriptions, moving to lower-cost providers and negotiating contacts, according to a new UJET research survey on the customer experience (CX) preferences and spending habits of over 1,600 consumers.

Specifically, of the consumers surveyed by UJET:

Only 18% of consumers reported that they do not plan to take any action right now.

Customer Service and Skimpflation: The Impact of CX on Sales and Loyalty 

When we asked respondents how they will determine which providers and subscriptions they’ll cut first, 73% said it all comes down to the brand experience. Specifically, 38% said they would cut the providers with the worst customer experience or service, and 35% said they would first cut the ones with the worst user experience, app or platform. 

These findings shine a bright light on how brands treat and serve their customers. Customer experience is vital in every market – and even more so when wallets tighten. Admittedly, the timing isn’t ideal – inflation, labor shortages and ongoing global disruptions are forcing brands to make hard choices about where they invest and where they cut. This environment has led to a rise in "skimpflation," where companies skimp on the goods and or service they provide to help combat rising costs.

The problem is widespread: 66% of consumers reported experiencing customer service skimpflation in the past six months, according to UJET’s survey.

Are Your Customers Suffering From Skimpflation Fatigue?

As inflation continues to rise, it might be tempting to start skimping on your business's goods and services to try to make ends meet. But the danger of this strategy is clear: your customers will notice and may choose to take their business elsewhere. And with a recession looming, losing loyal customers is the last thing you can afford to do. 

While this data appears to paint a negative picture, in reality, the findings are all in the eye of the beholder. While many brands stand to lose customers and market share in the coming months, other brands are positioned to double down and grow.

The brands that stand to profit the most are the customer experience leaders.

Learn why your company should avoid skimpflation and instead foster loyalty through elevated customer experience by downloading our free report: Customer Service Skimpflation: The Impact on Sales, Retention, and Loyalty.