The data: Consumers are frustrated.

• US customer satisfaction fell in Q2 at the second-fastest rate this century, trailing only the COVID-19 pandemic, when supply shortages drove sharp price increases, per the American Customer Satisfaction Index (ACSI).
• Customer complaints simultaneously hit record levels.

Why this matters: The gap between what companies charge and what they deliver is widening at a precarious moment for consumer spending.

• US GDP grew at just a 1.5% annual rate in the quarter, per the US Bureau of Economic Analysis, with consumer spending—the largest component of GDP—propped up mainly by affluent households.
• Wages aren’t keeping pace with inflation, further squeezing household budgets.

As consumers feel stretched, they have less tolerance for poor experiences and more reason to switch brands or retailers when expectations aren’t met.

Implications for retailers: Keeping customers happy is always important, but it matters even more when shoppers already feel like they’re paying more and getting less. Retailers that raise prices while letting service slip risk giving already-frustrated customers another reason to shop somewhere else.

But that also creates an opportunity. When satisfaction is generally falling, retailers known for strong service can differentiate themselves. Nordstrom, for example, has long made customer service part of its value proposition, and that positioning becomes even more valuable when rivals are falling short.

At a time when real growth can be hard for some retailers to come by, a high-touch customer experience can help deepen loyalty and win share from competitors.