Customer Satisfaction On The Rise

ORLANDO - The first step in an economic recovery might be a noticeable improvement in customer satisfaction.

Consumers have spoken and many of the best-known companies in the biggest industries have seen gains in customer service for the first time in a year, according to one survey.

The American Customer Satisfaction Index (ACSI) this week reported a 0.4 percent increase, with some of the biggest improvements coming from the hotel and telecom industries.

Traditional local and long distance service is up 4 percent, with AT&T leading the way with a 7 percent increase. Part of the reason may have been its recent merger with BellSouth. It also could be because of all the new products released in the last year, most notably the iPhone, said AT&T spokeswoman Gretchen Schultz.

"Customers are receiving benefits from the practices and changes we've made," she said. "Every time we deploy something ... we, the company, get better at it and the customer benefits in the end."

History has shown, according to ACSI, improvements in customer service can boost consumer spending. Then again, the public has a more-limited spending ability today compared to 2000 and 2001, when ACSI last saw a reversal.

"Households are under pressure from falling housing prices, tight credit and rising food and fuel costs, making it more difficult for satisfied consumers to spend more event if they want to," said ACSI founder Claes Fornell in a recent media release. "The smart move for companies in this economic environment is to make sure they keep the customers they have by shoring up their customer relationships."

The industry with perhaps the bleakest outlook is airlines. Customer satisfaction has dropped to its lowest point in seven years and fell for the third consecutive year, according to ACSI.

The rising costs of jet fuel has caused companies to increase ticket prices and charging extra fees.

American Airlines recently implemented a $15 bag-check fee and other airlines are considering doing the same. The charge comes on the heels of a large cancellation of American flights, which affected more than 100,000 passengers.

Both came after the first quarter of 2008, which is when the survey took place. American saw a 3 percent improvement during that span.

Others, including Continental Airlines and US Airways, suffered substantially. They dropped 10 and 12 percent, respectively, bringing the industry down with them.

Southwest continues to be a flagship for the airlines. It increased its rating by four points. It has led the industry in passenger satisfaction for 15 years.

Some of the other big winners in the survey include Pizza Hut, McDonald's, Hilton and Cox Communications.

Those that saw some of the worst drops include Sprint Nextel and Northwest.

Some good news for Northwest is that it be merging with Delta, which saw a 3 percent improvement in customer satisfaction. Companies coming off successful mergers - like in the recent case with AT&T and BellSouth - have done well in the past.

"When you put all those minds together and those services together, you're going to grow and improve," said Schultz, who represents AT&T Central Florida. "We're pulling a lot of great resources together."