CX & Loyalty: A Bad Experience Decreases Spending (Charts For 20 Industries)

Can a single bad experience cost a company money? You bet! As a matter of fact, 53% of consumers reported a cut in spending at fast food restaurants and rental car agencies after they’ve had a very bad experience. Those are the highest levels across the 20 industries we examined. At the bottom of this post we’ve assembled a number of industry-specific data charts that you can download and use.

In the report, What Consumers Do After a Good or Bad Experience, 2016, we analyzed how 10,000 U.S. consumers changed their spending after having a bad experience with hundreds of companies.


On average across all industries, 10% of consumers have had a very bad experience in the previous six months. After that experience, 37% of consumers cut back on their spending. As a result, 3,7% of revenues are at risk after a very bad experience (10% x 37%). This at-risk revenue ranges from a high of 6.5% for rental cars down to a low of 1.6% for supermarkets and retailers.

Bad Experience And Spending Change Charts for 20 Industries

If you’re looking for good data for your industry, we’ve put together these 20 industry charts. Feel free to use them within your presentations in accordance with our citation policy.

For example, here’s some draft copy you might use, together with your industry’s chart, in your company’s internal or external blog:

At [Your Company’s Name], we work hard to improve our Customer Experience, and this industry chart from Temkin Group shows why even one bad experience can cost us lost sales.

1612_afterbad_banking1612_afterbad_airlines 1612_afterbad_autodealers 1612_afterbad_computers 1612_afterbad_creditcards 1612_afterbad_fastfood 1612_afterbad_healthplans 1612_afterbad_hotels 1612_afterbad_insurance 1612_afterbad_investments 1612_afterbad_parcel-delivery 1612_afterbad_rentalcars 1612_afterbad_retail 1612_afterbad_software 1612_afterbad_tvservice 1612_afterbad_utilities 1612_afterbad_wireless 1612_afterbad_appliances

About Bruce Temkin, CCXP
I'm an experience (XM) management catalyst; helping organizations improve results by engaging the hearts and minds of their employees, customers, and partners. I enjoy researching and speaking about these topics. I lead the Qualtrics XM Institute, which is the world's best job. We're igniting a global community of XM Professionals who are inspired and empowered to radically improve the human experience. To achieve this goal, my team focuses on thought leadership, training, and community building. My work is driven by a set of fundamental beliefs: 1) Everything starts and ends with human beings, so you need to understand how people think, feel, and behave; 2) XM is a discipline that needs to be woven throughout an organization's entire operating fabric; and 3) Building the XM discipline requires a combination of culture, competency, and technology.

3 Responses to CX & Loyalty: A Bad Experience Decreases Spending (Charts For 20 Industries)

  1. Anthony Salerno says:

    With utilities, how exactly would spending decrease from a bad experience? I would appreciate some additional insight as to how a utility customer could control their spend with their utility provider and decide to spend less after a poor experience. I understand airlines, rental car companies, fast food restaurants, but I would love some clarification around the utility data. Thanks a lot!

  2. Peter Strohkorb says:

    Hello Bruce,
    IMHO, many CX executives fall into an unfortunate trap when they first embark on their CX journey. They look at the customer first. I’d value your input into this article on LinkedIn, if I may:

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: