Last updated: Skimpflation toll: Consumers cutting ties due to poor customer service

Skimpflation toll: Consumers cutting ties due to poor customer service


“Skimpflation” is something consumers have been dealing with since the pandemic, but they’ve had enough, especially as they struggle with inflation and a looming recession.

A new report from UJET shows that buyers are cancelling subscriptions and cutting back on spending as a response to soaring prices and poor customer service.

From airlines and hotels to retail stores and restaurants, skimpflation is everywhere as companies deal with rising costs and labor shortages by cutting back on the services they offer customers.

According to UJET’s research, which is based on a survey of 1,600 consumers, buyers aren’t taking it anymore:
  • 73% said they’ll cut providers and subscriptions with the worst CX or app
  • 66% experienced reduced customer service in the past six months –  with 87% saying they’ll spend less or stop spending money altogether at brands that reduce service
  • The top areas where consumers experience CX skimpflation are quality of service (60%), wait times (58%) and expertise and helpfulness (54%)

The findings are in line with a Forrester Research report that highlighted the growing trend of bad customer experience.

With a recession imminent, brands are reducing technology investments, training, and headcount, UJET said. But those cuts will backfire.

“While these findings are alarming for many brands, for others, it’s an opportunity to double down on their differentiators and expand market share,” Justin Robbins, who led the research for UJET, said in a prepared statement. “Consumers are clearly saying that CX is a top factor determining how and where they spend money. Smart, customer-centric businesses recognize this.”

Infographic: Consumers rebel against skimpflation

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