The Ever Given, the 220-ton cargo ship that can carry 20,000 containers, is no longer wedged in the Suez Canal. That’s the good news. The bad news? The six-day blockage of one of the world’s largest container vessels could have long-lasting ramifications.

According to Northeastern University professor of political science Stephen Flynn, “The disruption of a week of this size is going to continue to have cascading effects … it’s got to be at least 60 days before things get sorted out and appear to be a bit back to normal.” 

Ports will see added congestion, and ships will be thrown off their usual schedule. And worse, supply chains, which had already been heavily disrupted since the beginning of the COVID-19 pandemic from a worldwide container shortage, will be further compromised. Eventually, the consumer is going to bear the brunt of this dilemma in the form of higher prices. 

When this inevitably comes to fruition, customers, who have dealt with their fair share of goods shortages over the past year, are not going to be enthusiastic about the additional strain on their wallets.

It starts with freight costs

The reason consumers will be facing rising costs of goods stems from increased freight costs. 

Over 80% of global trade is transported by sea. And supply chain disruptions have made this process much more expensive. 

In June 2020, the average cost to ship a 40-foot container was $1,040. On March 1, 2021, that number soared to $4,570, per S&P Global Platts. This caused container shipping costs of U.S. imports to jump from $2 billion in February 2020 to $5.2 billion in February 2021, according to S&P Global Panjiva.

“At the moment a lot of these costs are within the supply chains,” said Chris Rogers, a research analyst at S&P Global Panjiva. “I think it’s inevitable that it will be passed on to consumers — it’s just going to take time.” 

Supply shortages already a problem

Peloton has experienced the double-edged sword of high demand. While customers crave the bike and exercise equipment, they get equally enraged when these products are delayed, or worse, don’t show up at all. According to a New York Times report, Peloton customer service can’t help much of the time.

But Peloton isn’t the only retailer feeling the supply chain squeeze.

Despite leading department and discount stores in customer satisfaction for the fifth straight year with a score of 81 (out of 100), per the most recent Retail and Consumer Shipping Report, Costco is having difficulty stocking imported cheese and patio furniture. Its customer satisfaction has also decreased 2% year over year.

Meanwhile, Dollar Tree, which also experienced slumping satisfaction, down 4% to 74, reveals its supply chains have “been stressed.” According to CEO Gary Philbin, the retailer has “$1 billion in the pipeline somewhere,” and more products are on their way. Foot Locker’s inventory was down nearly 24% at the end of Q4 because of port congestion. 

The list goes on and on.

The biggest loser in all this is going to be the consumer, who may be forced to pay more for high-demand products on short supply.

What can businesses do to soften the blow to their customers?

Manufactured goods like food items and appliances typically score higher for customer satisfaction than service-oriented businesses, like banks, airlines, or subscription TV. But delivery delays and rising prices threaten that favorable position. 

The last thing companies need in these trying times is for customer satisfaction to wane amid frustration with supply chain issues. The question is what can businesses do to soften the blow?

Peloton’s answer is to invest $100 million into air cargo in the hopes of speeding up delivery. Said Peloton CEO John Foley: 

“On average, in the coming months, we will be incurring a transportation and delivery cost that is over ten times our usual cost per Bike and Tread, including, in many cases, shipping them by air instead of by sea. We are making this investment because we are as frustrated as you are that you don’t have your Peloton Bike or Tread yet.”

While this investment might not be enough to curb the current crisis, it’s a step in the right direction. Customers want to believe their voices are being heard and businesses are taking steps to fix the problem. Organizations that fail to even address the issue are going to struggle to maintain the trust of their customers. This could cost them now and in the future.

Consumers should expect to see the price of goods go up. But businesses – especially retailers – have a responsibility to try to lessen the effect. Those that do will, hopefully, earn the patience, respect, and good will of their customers. Those that don’t, well, your brand reputation will be like that of the Ever Given in the Suez Canal: in need of a rescue.

COVID-19 had the airline industry reaching for the panic button.

According to a Franklin Templeton-Gallup poll conducted in 2020, over half (52%) of Americans who flew at least once in 2019 admitted they were now uncomfortable flying because of the pandemic. Sadly, passenger and revenue numbers soon reflected this growing desire to remain grounded. 

International passenger travel plummeted 60% in 2020, per The International Civil Aviation Organization (ICAO), and U.S. airlines’ net losses are projected to be more than $35 billion.  

Yet, despite the turbulent times, there is one area where the industry soars: customer satisfaction.

In our most recent Travel Report, passenger satisfaction with airlines has never been stronger, climbing 1.3% to its best ACSI score ever at 76 (out of 100). It is the only travel industry to experience customer satisfaction gains years over year.

How are airlines managing to score satisfaction points with passengers amidst these tumultuous times? Let’s find out.

You can’t put a price on comfort

Seat comfort has the lowest score among customer experience benchmarks with an ACSI mark of 73. Yet, it’s also the only aspect of airline travel that improved during the pandemic, rising to an all-time industry high.

Per ACSI data, seat comfort reviews were even better at the beginning of COVID-19, as the whole industry incorporated the practice of blocking middle seats during flights.  

Delta, which ties Southwest as the industry leader after jumping 3% to an all-time high of 79, put forth a thorough plan to prioritize social distancing – a plan that also included eliminating middle seat usage. And while other airlines began letting passengers buy middle seats, Delta is keeping the policy in place and limiting capacity on all flights through April 30, 2021.

Passengers have become less satisfied since airlines started filling the middle seats again. However, seat comfort has been steadily improving over the last five years, so at least airlines are making a concerted effort to address this common pain point.

Putting safety first

The fear of contracting COVID-19 kept many frequent passengers out of the sky. To ease these concerns, the “Big Four” – American Airlines, United, Delta, and Southwest – took strong safety measures, starting with “cleanliness.”

American Airlines partnered with Purell and Vanderbilt University Medical Center to start its Clean Commitment. United teamed up with Clorox and the Cleveland Clinic to forge its CleanPlus program. Delta launched CareStandard with the help of the Mayo Clinic and the Lysol manufacturers. The Southwest Promise features a partnership between the airline and the Stanford School of Medicine, as well as the use of high-efficiency particulate air (HEPA) filters.

The airline industry also sponsored a study from Harvard’s School of Public Health. The report showed that the risk of getting COVID-19 from flying was much lower than shopping or eating out at a restaurant.

Although customer satisfaction with cabin and bathroom cleanliness drops slightly to an ACSI score of 78, the airlines’ attempts to make their passengers feel safe and secure most likely kept this decline minimal.

Not business as usual for the leisure crew

Before COVID-19, 32% of business passengers complained to the airline. Yet, they were relatively satisfied, with an ACSI score of 79. During the pandemic, however, that changed. 

The percentage of complaining business passengers rose to 38%, but their satisfaction declined 10% to 71. This was not the case with leisure travelers.

Pre-pandemic, just 11% of these individuals complained, but they were far less satisfied at 65. Fast forward a year, and while 17% complained to the airline, their satisfaction level was much higher, up 6% to a score of 69. 

It’s difficult to pinpoint what exactly changed to make these passengers more content. Maybe they’re showing kindness to the airline, or perhaps, the airlines are grateful that people are traveling the skies again and want to express their appreciation. Whatever the reason, a satisfied customer is good for everyone.

Gradual improvement for airlines over time continues 

While airlines have taken specific steps to improve comfort and safety during the pandemic, the industry overall has been making positive strides over the last few years.

Since 2018, customer satisfaction with airlines has risen 4.1% to reach an all-time industry high. So, it’s not as if things weren’t heading in the right direction.

However, the COVID-19 pandemic presented unforeseeable challenges that threw the industry for a loop. And, with strict travel restrictions in the beginning and consumers remaining hesitant to fly once they were loosened, airlines could’ve easily buckled under the pressure. But they didn’t.

Since April 2020, the number of Americans passing through TSA checkpoints has slowly grown. Of course, while more people are traveling, airlines can’t get too cozy. They must continue making safety a top priority, while also maintaining the level of comfort passengers have grown accustomed to. If not, we could be looking at less friendly skies in the future.

The latest wave of customer dissatisfaction has crashed into the Retail sector – and most retailers were unable to get out of the way.

According to our latest Retail and Consumer Shipping Report, customer satisfaction backslides 2.3% to an ACSI score of 75.5 (out of 100) – the sector’s lowest mark since 2015. None of the six retail industries improve, and 86% of the retailers we measure experience worse satisfaction year over year.

But it isn’t all bad news.

This year, we measured 14 new specialty retail stores, and two of them – Nike and Hobby Lobby – debuted among the sector’s top overall performers with scores of 80. Others, like Ace Hardware (74) and Williams-Sonoma (73), not so much.

How did they succeed while other specialty retail newcomers struggled? To answer that, let’s take a closer look at what Nike and Hobby Lobby did right and where Ace Hardware and Williams Sonoma missed the mark.

Nike keeps it ‘clean’ 

At a time when social distancing is paramount, customers are paying close attention to areas like store cleanliness and layout. And they feel Nike shines.

But it doesn’t stop there. Nike also impresses with its store speed, staff courtesy, and mobile app.

Hobby Lobby is winning customers over with ‘sales’

Like Nike, customers appreciate the cleanliness and layout of Hobby Lobby. But where the arts and crafts store really distinguishes itself is through discounts.

The least satisfying facet of the specialty retail shopping experience is the frequency of sales and promotions, with an ACSI score of 73. Hobby Lobby, however, has no such trouble. In fact, it’s thriving.

Ace isn’t the place for satisfaction

Ace Hardware doesn’t have the lowest score in the industry, but according to customers, it’s close.

The hardware retailer struggles across most of the customer experience. Per ACSI data, it could stand to improve in everything from store cleanliness and layout, to merchandise variety, to mobile app performance.

Williams-Sonoma has work to do

In its debut appearance, Williams-Sonoma outperformed just one specialty retailer – last place GameStop, which fell 4% to a score of 72.

According to the data, customers feel that price is a major concern for the company. But the dissatisfaction doesn’t stop there.

Customers feel store locations are inconvenient, store hours could be better, and staff could be more courteous.

Will Retail rebound in 2021?

2020 was a tough year for the Retail sector, but many are hopeful that things will rebound in 2021.

Newcomers like Ace Hardware and Williams-Sonoma have a long road ahead of them to get in the good graces of their customers. However, it’s not impossible. If anything, observing companies like Nike and Hobby Lobby that debut near the top of the specialty retail industry should provide a useful blueprint to follow.

Of course, we should also point out that Hobby Lobby recently got rid of its 40% off coupon, which could affect its scores moving forward. But if you’re in the same boat as Ace Hardware and Williams-Sonoma, you have several changes you can make to improve customer satisfaction.

Satisfaction with the U.S. federal government is less than ideal – again.

Following a 1.2% decline last year, citizen satisfaction stumbles once more, dropping 4.4% to an ACSI score of 65.1 (out of 100), per our latest Federal Government Report. Citizen satisfaction has now fallen for the third straight year, sinking to its lowest score in five years.

Any way you slice it, this has been a weird year for the government. While it’s fair to wonder if this drop is a direct admonishment of the Trump administration – the run-up to the November elections was combative and the post-election period was a powder keg that exploded in a most unforeseen way – it’s important to remember what this report actually looks at.

So, let’s get into it.

What’s driving citizen satisfaction?

We can’t stress this enough: Our Federal Government Report looks at the satisfaction of individuals who’ve had direct contact and dealings with the government.

It’s not about political affiliation. It’s not about the administration. It’s not about Congress. It’s about the government officials who provide day-to-day services.

We measure four primary drivers of citizen satisfaction – process, information, customer service, and website – and they reflect the most pertinent performance areas of government agencies and services. This year, none improved.

The efficiency and ease of government processes dropped 3% to 66, the ease of accessing and clarity of information backpedaled 3% to 69, and the perceptions of government website quality plummeted 5% to 71. In the end, only the customer service score stood firm, unchanged at 74 – the highest of the four drivers.

As the report notes: “These changes reflect a broad and deep erosion of the quality of federal government services experienced by citizens in 2020.”

Did the pandemic impact federal government satisfaction?

It’s very likely the pandemic impacted citizen satisfaction in the federal government.

How much? It’s hard to say. However, just under 1,300 individuals were surveyed this year, and because of COVID-19, there were a smaller number of distinct federal departments captured in this year’s report.

Of those, only the Departments of Commerce (74) and Agriculture (74) scored comparably to the economy-wide national ACSI average (74.4 as of Q3 2020). The former is down from last year (75 in 2019), while the latter is up from 70.

The remaining departments scored considerably lower than the national ACSI average. The Department of Health and Human Services was third at 65, followed by the Department of Justice at 64. The Department of Homeland Security and the Social Security Administration tied at 63, and the Treasury Department finished last with an ACSI score of 60.

Another down year for citizen satisfaction in the federal government

For three consecutive years, citizens have been less satisfied with the federal government. Thanks to the decrease in 2020, this score is the lowest it’s been since 2015.

Yet, for all the malaise with politics, the general decline across the board cannot necessarily be attributed to the Trump administration. COVID-19, however, kept people away, limiting the number of interactions with – and services received from – the federal government.

Still, it’s clear that individuals who did deal with the federal government in 2020 were not satisfied. Here’s to hoping they have a better experience in 2021.

There was every reason to believe full-service restaurants were going to struggle compared to limited-service chains during the pandemic.

Not only did limited-service chains already have the proven business model to support expanded carry out and delivery, but customer satisfaction with full-service restaurants was already diminishing prior to COVID-19, down 2.5% to a score of 79, according to the American Customer Satisfaction Index (ACSI) 2019-2020 Restaurant Report.

Amazingly, that’s not what happened.

Per our new special COVID-19 restaurant study based on surveys collected from April 1, 2020 to Sept. 30, 2020, customer satisfaction with full-service restaurants climbs 1.3% to a score of 80, outperforming fast-food restaurants, which remain unchanged at 78.

Of course, as is always the case, some restaurants thrived, and others did not. Here’s a look at the two full-service restaurants that upped their customer satisfaction game during the pandemic and the two chains that failed to deliver.

Chili’s rises from the ashes

At the time of our last Restaurant Report, Chili’s sat at the bottom of the full-service industry with an ACSI score of 75. That’s no longer the case.

Chili’s climbs 4% to 78, tying five other full-service chains – Applebee’s, Cracker Barrel, LongHorn Steakhouse, Outback Steakhouse, and Red Robin. It now sits just two points off the industry lead.

While Chili’s doesn’t lead any of the customer experience benchmarks – and remains mostly in the middle of the pack – it’s made slight gains in multiple areas, including food quality and food variety. Customers agree that the restaurant’s biggest improvement is in store speed.

Red Robin flies out of the cellar

Red Robin wasn’t in the basement like Chili’s, but it was pretty close, tied with both Denny’s and Ruby Tuesday at 76. Red Robin has since flown in the right direction.

Red Robin jumps 3% into a six-way tie at 78. The gourmet burger chain makes small strides in courtesy, layout and cleanliness, order accuracy, and beverage variety. According to the data, Red Robin makes serious progress in terms of store speed and mobile reliability, placing it near the top of the industry in both areas.

LongHorn Steakhouse falls from first

Earlier this year, LongHorn Steakhouse led all full-service restaurants with an ACSI score of 81. Its rule was brief, and its fall was hard.

LongHorn Steakhouse joins Chili’s, Red Robin, and three other brands at 78 after plunging 4%. Its grip over the other chains in many of the customer experience benchmarks also disappears.

Save for mobile quality and reliability, LongHorn Steakhouse tumbles across the board. Customers find it especially worse in beverage quality, food quality, layout and cleanliness, order accuracy – all areas it once held or tied for the lead.

Red Lobster sinks toward the bottom

Red Lobster was previously tied with Olive Garden and Cracker Barrel with an ACSI score of 79. It’s since sunk below them both (among others).

The seafood chain now sits closer to the bottom of the industry after dropping 3% to 77. Aside from mobile app quality, where it remains steady, Red Lobster declines in every customer experience benchmark.

Per the data, its biggest drop-offs occur in beverage quality, staff courtesy, order accuracy, and store speed, where Red Lobster now scores closer to the bottom of the fast-food industry.

Full-service restaurants rise to the occasion

Full-service restaurants were on shaky ground when we released our latest Restaurant Report; just one restaurant improved, while seven out of 12 saw customer satisfaction slip.

Yet, since that time, the industry has shown toughness, resiliency, and flexibility. Now, six fast-food chains see customer satisfaction growth, and the industry is improving in many areas, including beverage quality, food quality, staff courtesy, order accuracy, service speed, and mobile app reliability.

While some restaurants struggled to meet customer needs during the pandemic, many identified their weaknesses and turned things around. All four of these full-service chains may have the same ACSI score of 78, but the paths they took to get there made all the difference.

Restaurants that want to do the same might want to take a page out of the Chili’s and Red Robin playbook.