In a revealing press release on July 31, 2025, GoDaddy Inc. (NYSE: GDDY) shared insights from its latest Consumer Pulse survey, which highlights a growing discontent among U.S. shoppers regarding customer service. The survey, which questioned 1,500 consumers across the country, found that nearly half of respondents believe that customer service quality is deteriorating. Notably, this sentiment is less pronounced among younger generations, such as Gen Z and Millennials, who appear to maintain a more optimistic outlook compared to older generations.

2. Customer Service Decline: A Widespread Concern

According to the survey results, only 20% of consumers reported improvements in customer service, while a significant 42% noted a decline. The dissatisfaction is particularly strong among Gen X and Baby Boomers, with only 12% indicating that service has improved and 46% feeling that it has worsened.

Generational Perspectives

The generational divide in perceptions of customer service is striking. Among Gen Z, 29% believe that customer service has improved, while 31% of Millennials share this positive view. In contrast, older generations express greater skepticism, with only 18% of Gen X and Baby Boomers willing to say the same.

Amy Jennette, GoDaddy’s Small Business Trends Expert, commented on this divide: "Young consumers are more likely to give businesses the benefit of the doubt, but they also have higher expectations for speed, flexibility, and friendliness." She emphasized the importance for businesses to recognize that customer trust is fragile and that maintaining it requires ongoing effort.

3. Key Drivers of Changing Attitudes

The survey unveiled several factors contributing to the evolving attitudes toward customer service:

Channel Preferences Are Evolving: While 44% of respondents still prefer traditional phone support, younger generations like Gen Z and Millennials lean toward live chat, text messaging, or social media direct messages. However, an overwhelming 86% of all consumers expressed a preference for interacting with a human rather than a chatbot.

Rising Frustration with Service: Among those dissatisfied with current customer service standards, 66% cited rude treatment as a primary concern, while 55% pointed to a lack of empathy. Additionally, 47% of respondents expressed frustration with the absence of customer service options.

One Strike and You're Out: Younger consumers are notably less forgiving. Approximately 24% of Gen Z indicated they would not give a business a second chance after a negative experience, compared to 18% of Gen X and Baby Boomers.

4. Opportunities for Small Businesses

Despite the prevailing trust issues, the survey also highlighted significant opportunities for small businesses. A majority of consumers (68%) expect small businesses to provide the same level of digital security and professionalism as their larger counterparts. The survey indicated that flexibility in policy enforcement, particularly regarding returns, and a sense of urgency in resolving issues are critical for businesses aiming to prioritize customer satisfaction.

Jennette encouraged small businesses to leverage technology to foster authentic relationships with customers: "The right technology, especially using the latest almost-magical AI capabilities, makes this possible, even for businesses without large support teams."

5. GoDaddy Conversations: A Solution for Small Businesses

To aid small business owners in managing customer interactions effectively, GoDaddy introduced GoDaddy Conversations—an AI-powered communications tool that consolidates messages from various platforms, including web chat, social media, and email, into a single inbox. This allows businesses to respond quickly, personalize interactions, and seize every opportunity to build customer trust.

For more information on GoDaddy's diverse suite of products designed to support business growth, visit GoDaddy's official website.

6. Conclusion

The latest GoDaddy Consumer Pulse survey paints a clear picture of the current landscape of customer service in the U.S., revealing a significant generational divide in expectations and experiences. As businesses strive to meet the needs of increasingly discerning consumers, particularly younger ones, the call for improved service quality, empathy, and responsiveness has never been more critical. Small businesses, in particular, have a unique opportunity to differentiate themselves in this challenging environment by embracing technology and prioritizing customer relations.

Original press release