When Cost-Cutting Costs You Customers

TODAY’S STORY

In 2024, cost-cutting dominated industries as Fortune 500 executives implemented layoffs and other measures to slash expenses.

However, many of these cost-cutting decisions don’t go hand in hand with a good customer experience. Nearly two-thirds of executives say they are actively making tradeoffs between customer satisfaction and cost efficiency.

And it’s starting to show in the data. A recent Accenture report states customer service is “on the brink.”

Out of 7,000 customers surveyed, Accenture found 3 in 5 customers felt frustrated and annoyed after at least one poor customer service interaction in the past 12 months. That one lousy interaction can cost a company. Nearly 90% of customers who recently had a single negative experience said they would likely avoid the offending company in the future.

In the race to cut costs, too many companies are trimming the wrong things.

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Thanks for reading,
Kieran & Justin Ryan