This article was based on the interview with Isabell Zdatny from the XM Insitute at Qualtrics by Greg Kihlström, AI and Marketing keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
Understanding customer sentiment is more crucial than ever for businesses striving to enhance their customer experience (CX). However, recent findings from the Qualtrics 2025 Consumer Trends Report highlight a troubling trend: a significant decline in customer feedback. This phenomenon, termed the “feedback recession,” poses serious implications for organizations aiming to meet and exceed customer expectations.
The term “feedback recession” refers to the noticeable decrease in the volume of feedback provided by consumers regarding their experiences with brands. According to the report, only one-third of customers now share their experiences directly with companies, marking an eight percentage point drop over the past four years. This decline is not limited to direct feedback; consumers are also less likely to share their experiences on public platforms such as social media and online review sites. The decrease in feedback is particularly pronounced among older demographics, with consumers aged 55 and older being twice as likely to remain silent about their experiences compared to younger consumers.
Several factors contribute to this feedback recession. Firstly, the sheer volume of choices available to consumers today can lead to decision fatigue, causing them to disengage from providing feedback. In an era where brands are vying for attention, consumers may feel overwhelmed and choose to remain silent rather than articulate their experiences. Additionally, the rise of automated customer service solutions and self-service options may reduce the need for consumers to interact with brands directly, further contributing to the decline in feedback.
The implications of this feedback recession are significant. When customers choose to remain silent, businesses lose valuable insights that are essential for understanding customer needs and expectations. This information is critical for organizations looking to adapt and innovate their offerings in an increasingly competitive marketplace. Without sufficient feedback, companies may struggle to identify pain points in the customer journey, leading to missed opportunities for improvement and growth.
Moreover, the decline in feedback can create a false sense of security for businesses. Organizations may mistakenly believe that a lack of complaints indicates satisfaction, while in reality, silence may signal disengagement or indifference. This disconnect can lead to a deterioration of customer relationships, as brands fail to recognize and address underlying issues that may be driving customers away.
To combat the feedback recession, businesses must adopt proactive strategies that encourage customer engagement and feedback. This could involve creating more accessible and user-friendly feedback channels, ensuring that customers feel their voices are heard and valued. Organizations can also leverage technology to facilitate feedback collection, utilizing tools such as surveys, chatbots, and social listening to capture insights in real time.
Additionally, fostering a culture of feedback within the organization can help bridge the gap between customers and businesses. By prioritizing customer feedback as a critical component of their strategy, organizations can demonstrate their commitment to understanding and meeting customer needs. This approach not only enhances customer loyalty but also positions businesses to adapt and thrive in an ever-evolving landscape.
The decline of customer feedback represents a significant challenge for businesses today. As consumers become increasingly silent about their experiences, organizations must recognize the urgency of addressing this trend. By implementing proactive strategies to encourage feedback and fostering a culture that values customer insights, businesses can navigate the feedback recession and emerge stronger, more customer-focused, and ultimately more successful in the marketplace.
