Retailers Race in a Stormy Holiday CX Environment
The merchant-customer relationship is comprised of multiple complex and interlocking mechanisms influencing each other and, ultimately, customer satisfaction and loyalty.
At the American Customer Satisfaction Index (ACSI®), we describe this relationship mathematically and measure, for example, the influence that one aspect of the product has on the overall customer experience. These industry-specific measures create a broader model where investments are optimized to have the greatest impact on satisfaction. They facilitate a deeper understanding of customer priorities, something absolutely critical in an increasingly divergent economy.
After all, the rush to secure a piece of consumer spending isn’t a simple footrace anymore… it’s a full-blown fleet race.
Different Tacks
Before a fleet of sailboats begin a standard race, each boat fights for best positioning off the start line, reading the course to see where breeze will fill. This often means that opposing sailboats habitually choose completely different points of sail. To win, you’ll need to cover, or condense, both halves of the fleet.
Back in October, we reflected on the “K-shaped economy,” stressing the dichotomy of value and convenience as key priorities brands would need to “cover” while consumers braced for the holiday season.
As the year closed, spending at critical seasonal periods reflected intensifying economic stratification. According to the Washington Post in a summary of Black Friday and Cyber Monday spending trends:
The wealthiest households, with incomes over $150,000, spent 3% more between Black Friday and Cyber Monday than they did a year ago. Shoppers with household incomes less than $40,000, meanwhile, pulled back, spending 2% less than they did in the same period last year.
This split in consumer spending speaks to a nearly three-decade long trend depressing the purchasing power of lower-and-middle income Americans. In essence, those earning less than $40,000 per year began the holiday retail race on a completely different tack- and in a completely different set of environmental circumstances – than the higher earners.
Yet even the prospective value offered by Black Friday and Cyber Monday sales lacked the draw necessary to bring these consumers into stores or onto a brand’s online platform. Satisfaction among general merchandisers measured in the American Customer Satisfaction Index fell 2% during the Black Friday and holiday retail period compared to the previous month, with customers citing poorer availability of merchandise and lower efficiency among buy online/pick up in-store (BOPIS) options during this time. Similarly, specialty retail saw a 5% decline in satisfaction during the same period, with customers citing overall value and quality regressions in stores.
Though general merchandisers were relatively able to maintain customers’ previous perceptions of value, they played chase on key convenience metrics. With a broad majority of Americans spending more this year on vital necessities like healthcare and utilities, retailers are no longer competing for the same “disposable” income and may need to adjust course.
The Right Coverage
Critically, streamlining the integration of store-specific availability with mobile and online platforms during well-known holiday sale periods could help address both merchandising and BOPIS-related complaints by improving the timeliness of out-of-stock item updates and the overall convenience of the experience itself.
Further, strategies like dynamic pricing could help brands solve for individually unique customer priorities but may also reduce overall perceptions of value. With commerce on social media platforms expected to account for a staggering $1.1 trillion in global sales, eagle-eyed shoppers can track prices online, in stores, and on TikTok- and are more likely to notice changing prices and pass their findings along to their friends and followers.
American companies can’t just stay the course and hope the wind conditions change enough to bring the fleet together. They’ll have to cover both halves of American consumers by focusing on adding value through improvements in convenience and price at checkout or they’ll spend their time playing chase.
The ACSI has over 30 years of experience helping companies cover their competition without losing forward momentum. Whether you’re looking for smooth sailing through 2026 and beyond or simply to weather the storm, our data-driven insights are guaranteed to help determine where the wind is blowing.