Qualtrics XM Institute: What happens after a bad experience

While a good customer experience can lead consumers to buy more from a company and build trust over time, the opposite is true when the experience is less than satisfactory. A global consumer study by Qualtrics XM Institute found that more than half of consumers have reduced (34%) or stopped spending (19%) after a bad experience.

The survey of more than 17,500 consumers in 18 countries revealed that three in 10 respondents had had very bad experiences with government agencies. Others also reported having very bad experiences with airlines (27%), internet service providers (27%) and mobile phone providers (23%).

One in five consumers have had a very bad experience with an online retailer. However, online retailers appear to be the most likely to see consumers reduce or stop spending after a very bad experience. More than 6 in 10 consumers have either reduced their online retail spending (35%) or stopped spending (28%) after such an experience. This is followed by consumers who cut back or stopped spending with their mobile phone provider after a very bad experience, at 36% and 24%, respectively.

11% of consumers have had a bad experience with a streaming service. Additionally, if they have had a bad experience with it, this is one of the industries least likely to see consumption decrease (29%) or stop (13%).

Customer Experience in the United States

Globally, consumers report very poor experiences only 18% of the time. Unfortunately for U.S. businesses, that percentage is even higher. U.S. consumers say an average of 21% of their customer experiences are “very poor.” Still, the U.S. is slightly below average in the percentage of bad experiences that lead to cuts in spending. About 3 in 10 U.S. consumers who experienced a poor experience reduced their spending, and 1 in 5 stopped spending.

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