Brands today are challenged by heightened consumer expectations and declining consumer feedback. In other words, negative experiences sharply impact customer loyalty, but — despite the ready availability of feedback channels — consumers aren’t letting brands know about bad interactions, or good ones either.
Those are the main takeaways from the “2025 Consumer Trends Report” from experience management platform Qualtrics, based on insights from nearly 24,000 consumers in 23 countries.
Consumers least likely to give social media feedback. Whether experiences are good or bad, consumers are least likely to post about them on social media, most likely to tell friends and family (if they tell anyone at all). We asked Isabelle Zdatny, head of thought leadership at Qualtrics’ XM Institute, for commentary.
“Consumers are staying silent about their experiences, whether they’re good or bad,” she said. “That’s a huge problem for companies trying to understand and calibrate experiences. This is a trend we’ve been asking about every year since the study began in 2021 and it has dropped every single year. It has dropped seven points after a good experience, eight points after a bad experience. The only thing that has increased is consumers saying they didn’t tell anyone about the experience. When consumers do tell anyone, they’re most likely to tell their friends and family. Only about 20% post something about it on social media; that’s dropped significantly.”
Zdatny thinks consumers really can’t be bothered. “If you’ think’re like, I’m never going to interact with this company again, you’re not going to take your precious time to go write out a rant or provide them with feeback. It’s reflective of a general erosion of trust. There’s a lot of survey fatigue going on. What’s in it for me to give feedback to an organization?”
Only about a quarter of consumers trust brands’ use of AI. Twenty-six percent of consumers trust brands to use AI responsibly — and that’s against a background of consumers becoming more familiar with AI.
Zdatny again: “The headline is, ‘AI hype gives way to AI skepticism.’ We asked how comfortable consumers were performing activities using AI — like booking a plane ticket, getting medical advice, checking the status of an order — and the average drop in how comfortable the average consumer is, is 11 percentage points year on year. Even though AI has been around longer and consumers have presumably used it more, they are actually less comfortable using it to perform tasks.”
The full report is here (registration required). The main data points are here.
Why we care. Two things jump out about this report. First, it’s a healthy sample size. Second, unlike many reports, it’s not just a booster for the sponsor’s business. After all, one thing central to Qualtrics’ offering has been survey-based assessment of experience quality. What it does reflect is an interest in facing facts about declining feedback and loyalty as a basis for doing something about it.
Seeing consumers turn their back on social media ranting will be, for many of us, a surprise. Of course it’s hard to disentangle disillusionment with brands from disillusionment with social media as a channel.
Dig deeper: What is customer experience and why does it matter?
The post Declining customer feedback and loyalty, growing AI skepticism appeared first on MarTech.
# Decreasing Customer Feedback and Loyalty Amid Rising Skepticism Towards AI
## Introduction
In recent years, Artificial Intelligence (AI) has become an integral part of customer service, marketing, and product development strategies. From chatbots to personalized recommendations, AI-driven solutions have revolutionized the way businesses interact with their customers. However, as AI continues to evolve, so too does the public’s perception of it. A growing skepticism towards AI is emerging, and this shift is having a noticeable impact on customer feedback and loyalty.
This article explores the reasons behind the increasing distrust of AI, how it affects customer engagement, and what businesses can do to address these concerns and regain customer trust.
## The Rise of AI in Customer Engagement
AI has been widely adopted by businesses to streamline operations, improve customer experience, and enhance personalization. Some of the most common AI applications in customer engagement include:
1. **Chatbots and Virtual Assistants**: AI-powered chatbots provide 24/7 customer support, answer frequently asked questions, and help resolve issues quickly.
2. **Personalized Recommendations**: AI algorithms analyze customer behavior and preferences to offer personalized product or service recommendations, improving the user experience.
3. **Sentiment Analysis**: AI tools can analyze customer feedback, reviews, and social media posts to gauge customer sentiment, helping businesses make data-driven decisions.
4. **Automated Surveys and Feedback Collection**: AI can automate the process of collecting and analyzing customer feedback, making it easier for businesses to understand customer needs and preferences.
While these AI-driven solutions have brought about significant improvements in efficiency and customer satisfaction, they have also raised concerns among consumers, leading to a decline in trust and loyalty.
## Growing Skepticism Towards AI
Several factors are contributing to the growing skepticism towards AI, which in turn is affecting customer feedback and loyalty:
### 1. **Privacy Concerns**
One of the primary concerns customers have about AI is the potential invasion of privacy. AI systems often rely on vast amounts of personal data to function effectively, such as browsing history, purchase behavior, and even location data. Many customers are uncomfortable with the idea of companies collecting and analyzing their data without explicit consent or transparency. High-profile data breaches and misuse of personal information have only exacerbated these fears.
### 2. **Lack of Human Touch**
While AI-powered chatbots and virtual assistants can handle basic customer inquiries, they often lack the empathy and understanding that human agents provide. Customers may feel frustrated when interacting with AI systems that fail to grasp the nuances of their problems or provide generic responses. This lack of human touch can lead to a sense of detachment, making customers less likely to engage with the brand or provide feedback.
### 3. **Bias and Fairness Issues**
AI algorithms are not immune to bias. If the data used to train AI models is biased, the resulting decisions and recommendations can also be biased. This can lead to unfair treatment of certain customer segments, such as offering different prices or services based on demographic factors. Customers are becoming increasingly aware of these issues, and many are losing trust in AI systems that they perceive as unfair or discriminatory.
### 4. **Over-Automation**
While automation can improve efficiency, over-reliance on AI can lead to a lack of personalization and a one-size-fits-all approach. Customers may feel like they are being treated as mere data points rather than individuals with unique needs and preferences. This can result in a decline in customer loyalty, as customers seek out brands that offer more personalized and human-centered experiences.
### 5. **Fear of Job Displacement**
The rise of AI has sparked concerns about job displacement, with many fearing that AI will replace human workers in various industries. This fear is not limited to employees; customers may also be concerned about the implications of AI on the broader economy and society. As a result, some customers may be less inclined to support companies that heavily rely on AI, viewing them as contributing to job loss and economic inequality.
## Impact on Customer Feedback and Loyalty
The growing skepticism towards AI is having a tangible impact on customer feedback and loyalty. Some of the key effects include:
### 1. **Decline in Feedback Participation**
As customers become more wary of AI, they may be less willing to provide feedback, especially if they believe their data will be used in ways they do not fully understand or consent to. Automated surveys and feedback collection tools may be viewed with suspicion, leading to lower response rates and less valuable insights for businesses.
### 2. **Erosion of Trust**
Trust is a critical component of customer loyalty. When customers feel that a company is not transparent about its use of AI or is mishandling their data, trust erodes. This can lead to a decline in repeat business and long-term customer relationships.
### 3. **Reduced Engagement with AI-Driven Services**
Customers who are skeptical of AI may avoid engaging with AI-driven services, such as chatbots
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