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Customer Satisfaction Barely Dips Customer Satisfaction Barely Dips

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By TONY HOLT

Hernando Today

Published: December 29, 2008

ANN ARBOR, Mich. - Soaring unemployment, rampant business closings and a crushing mortgage crisis have dampened any hopes of an economic turnaround in 2009.

There might be one ray of light in the midst of the ongoing stream of bad news.

Customer satisfaction, often a strong indicator of economic success or failure, is holding steady.

The American Customer Satisfaction Index (ACSI) surveys more than 200 companies that represent almost 50 percent of the U.S. Gross National Product. It aims to show the cause and effect between customer satisfaction and economic performance. The data from the third quarter of 2008 are relatively positive.

"The good news is that there has not been a collapse in customer satisfaction, but rather that the slide in ACSI might be flattening," said Claes Fornell, the founder of ASCI.

Some of the manufacturing and durable goods included in the survey are food manufacturers, athletic footwear and personal care and cleaning products. They have mostly held steady in the 80 to 89 percent satisfaction range.

Overall, aggregate customer satisfaction dipped by 0.1 percent. The overall score is 75.

In the past, the quarterly surveys by ACSI have paralleled the ups and downs of the economy, but with the financial crisis growing, unemployment rising and an ever-worsening credit crunch, the ability of the average consumer to spend money is expected to be sharply reduced.

The mood of the consumer might not have as much of an impact on the economy if people feel they can't afford to buy products, Fornell warned.

"(Customer) satisfaction will not contribute to aggregate consumer spending as much as it used to," he said. "Households are strapped for cash, have little savings and credit is tight."

On the flip side, those companies with positive results from the survey are more likely to survive the recession and could surge ahead of the pack once the economy recovers.

"(For) individual companies, consumer satisfaction actually matters more in a recession," Fornell said. "Now is the time to make sure customers don't leave and that margins don't evaporate. Firms without strongly satisfied customers will face a very difficult challenge."

Some of the highest-scoring companies in the survey include Heinz, Nike, Quaker Oats, Dr Pepper Snapple Group and the Colgate-Palmolive Co. The latter improved on its previous quarter score by 7.4 percentage points.

Throughout the year, auto manufacturers, airlines and major appliance companies saw major slides in customer satisfaction, while companies such as Google and Apple embarrassed the competition.

In August, it was reported Google responded to challenges from Yahoo to surge past its closest Web-based competitor by nine points.

Apple meanwhile, posted its largest gain ever at 85 - 10 points higher than its nearest rival. It is the widest gap between first and second place in any industry measured by ACSI.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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