"Broken Windows, Broken Business" Author Michael Levine Warns: Bad Customer Experiences Could Cost Global Organizations $3.7 Trillion Annually

LOS ANGELES, CA – Bad customer experiences are costing businesses more than ever, according to new research by experience management company Qualtrics, which projects global losses of $3.7 trillion annually—a staggering 19% increase from last year's $3.1 trillion projection.

Best-selling author Michael Levine, whose influential business book Broken Windows, Broken Business (www.BrokenWindowsBook.com) continues to shape conversations around customer service and operational excellence, calls the findings a wake-up call for companies and brands worldwide.

"This jaw-dropping figure highlights how critical customer service and experience are in today's competitive market," said Levine. "Despite the significant resources businesses invest in improving customer experience, they're still falling short in addressing fundamental service issues."

The Qualtrics survey, conducted in the third quarter of 2023, gathered responses from 28,400 consumers across 26 countries and 20 industries. While the survey reported a 2% decrease in lousy customer experiences compared to the previous year, factors like increased consumer spending have amplified the financial impact. To put it into perspective, the $3.7 trillion loss is more than double the U.S. federal deficit in 2023.

Complementing this global data, a new 2024 U.S. study—sponsored by RingCentral and aligned with census demographics—reveals a similar trend domestically. The findings highlight two paths for organizations:

1. Accept the loss caused by bad experiences, risking revenue, reputation, and long-term customer loyalty.
2. Capitalize on service excellence to create a competitive advantage that drives sales, profits, and retention.

"Customer experience is no longer a side consideration—it's the core of a brand's survival and growth," Levine emphasized.

For additional insights into how businesses can transform customer service strategies, visit Broken Windows, Broken Business at www.BrokenWindowsBook.com.