> Before US Airways was purchased by America West in 2005, the airline slashed its customer service budget, and outsourced many of those functions. As a result, the company mishandled or failed to address numerous complaints, angering customers to the point that no amount of cost-cutting could make up for the fact that passengers didn't want to do business with with the airline, eventually forcing it to file bankruptcy.
While brick-and-mortar stores have faced a lot of headwinds, and mismanagement is not always at the expense of the consumer, various failures have ultimately been attributed to consumers just not accepting it anymore.
> A poor customer experience has its consequences. Across all industries, an average of 45% of consumers cut their spending with companies after having a bad experience. The Fast Food industry is more likely than average to either see consumers decrease spending (42%) or completely stop spending (25%).
> In pushing for a better return on investment that never materialized, Mr. Lampert lost sight of the most important player in retail: The customer.
> “When someone pulls up to a Kmart or Sears they don’t see ROI,” Mr. Cohen said. “They see light bulbs that are burnt out, potholes in the parking lot and a front door that looks like it was hit with a sledge hammer.”
Sure, any one thing rarely kills a company or even product line unless it's a true showstopper. But at least in part, this is because when customers let a company know that they aren't happy, the company listens.
Apparently, US Airways.
> Before US Airways was purchased by America West in 2005, the airline slashed its customer service budget, and outsourced many of those functions. As a result, the company mishandled or failed to address numerous complaints, angering customers to the point that no amount of cost-cutting could make up for the fact that passengers didn't want to do business with with the airline, eventually forcing it to file bankruptcy.
While brick-and-mortar stores have faced a lot of headwinds, and mismanagement is not always at the expense of the consumer, various failures have ultimately been attributed to consumers just not accepting it anymore.
https://www.marketingcharts.com/customer-centric/customer-ex...
> A poor customer experience has its consequences. Across all industries, an average of 45% of consumers cut their spending with companies after having a bad experience. The Fast Food industry is more likely than average to either see consumers decrease spending (42%) or completely stop spending (25%).
Sears and Kmart's failures have been blamed on decades of mismanagement driving away customers. https://www.wsj.com/articles/edward-lamperts-non-strategy-to...
> In pushing for a better return on investment that never materialized, Mr. Lampert lost sight of the most important player in retail: The customer.
> “When someone pulls up to a Kmart or Sears they don’t see ROI,” Mr. Cohen said. “They see light bulbs that are burnt out, potholes in the parking lot and a front door that looks like it was hit with a sledge hammer.”
Sure, any one thing rarely kills a company or even product line unless it's a true showstopper. But at least in part, this is because when customers let a company know that they aren't happy, the company listens.