In a recent LinkedIn post, Colin Shaw discusses concerning trends in customer satisfaction, drawing on data from the American Customer Satisfaction Index (ACSI®). Shaw highlights that despite strong corporate profits, overall customer satisfaction scores have remained stagnant for nearly a decade, signaling a potential weakening of buyer utility and an underlying economic fragility that could have significant repercussions.
The Stagnation of Customer Satisfaction
Shaw points out that the flatlining of customer satisfaction is not merely a neutral observation but a critical warning sign for businesses. According to the ACSI data he shared, the national score has not moved significantly over the past ten years. This prolonged period of stagnation, Shaw argues, occurs even as companies report robust profits, suggesting that the focus on customer experience may not be yielding the expected improvements in buyer value.
“Customer satisfaction is flat, and that’s a warning sign. The national ACSI score remains where it was close to a decade ago, signaling long-term weakening of buyer utility even as companies report strong profits.”
As Colin Shaw notes, this disconnect between corporate profitability and customer satisfaction is a key indicator that deeper issues may be at play within the market and within how businesses are approaching customer relationships.
Building ‘Pent-Up Customer Defection’
A significant concern raised by Shaw is the potential for a surge in customer churn, which he terms a “wave of ‘pent-up customer defection’ is building.” He elaborates on this by connecting stagnant satisfaction levels with increasing customer complaints and rising switching costs. This combination, Shaw explains, creates a latent pool of customers who are dissatisfied but may be hesitant to leave due to various barriers.
“Stagnant satisfaction, rising complaints, and higher switching costs are creating a stockpile of latent churn that can release suddenly when barriers drop.”
In Shaw’s view, this stockpile of dissatisfied customers represents a significant risk. When these barriers eventually lower, whether through competitive pressure, technological shifts, or other market dynamics, businesses could face a sudden and substantial exodus of their customer base. This highlights the precarious position many companies might be in, relying on existing barriers rather than genuine customer loyalty.
Market Concentration Masking Economic Fragility
Further analysis from Colin Shaw delves into the role of market concentration in obscuring underlying economic weaknesses. He argues that in markets with fewer competitors and greater pricing power, companies can afford to increase prices without necessarily improving the customer experience. This scenario, he warns, is historically linked to detrimental economic outcomes.
“Market concentration is masking real economic fragility. With fewer competitors and greater pricing power, firms can raise prices without improving the customer experience — a pattern that historically precedes slower GDP growth and rising inflation.”
Shaw’s insights suggest that the current business environment, characterized by high profits and seemingly stable customer satisfaction, might be an illusion created by market consolidation. As he points out, this pattern has historically been a precursor to broader economic slowdowns, including reduced GDP growth and increased inflation. He links these observations to his broader arguments in a recent newsletter, titled ‘Uncomfortable Truth: The Focus on Customer Experience Hasn’t Paid Off, Why?’ underscoring his consistent view on these critical business indicators.
📝 About This Content
This article is based on insights shared by Colin Shaw on LinkedIn.
📅 Originally posted on February 11, 2026 | View original post on LinkedIn →