GoDaddy Survey Shows Customer Patience Is Thinning, Unless You're Under 30

Rhea-AI Summary

GoDaddy (NYSE: GDDY) has released its Consumer Pulse survey revealing significant generational differences in customer service perceptions. The survey of 1,500 U.S. consumers shows that while 42% believe customer service is declining, younger generations remain more optimistic.

Key findings show that 29% of Gen Z and 31% of Millennials report improved customer service, contrasting sharply with Gen X and Boomers, where only 12% see improvement. The study highlights that 86% of consumers prefer human interaction over chatbots, and 44% still favor phone support. Notably, 24% of Gen Z consumers won't give businesses a second chance after a poor experience.

The survey also reveals that 68% of consumers expect small businesses to match large companies in digital security and professionalism. GoDaddy introduces its Conversations tool to help small businesses manage customer communications across multiple channels.

Positive

• Younger generations (Gen Z and Millennials) show higher satisfaction with customer service
• GoDaddy launches new AI-powered Conversations tool for small business communication
• Clear market opportunity identified for businesses to differentiate through better customer service
• Strong consumer preference (86%) for human interaction indicates potential competitive advantage for businesses offering personal service

Negative

• 42% of consumers perceive declining customer service quality
• 66% of dissatisfied customers cite rude treatment as primary concern
• 24% of Gen Z customers won't give businesses second chances after mistakes
• Small businesses face pressure to match large company standards for digital security and professionalism

News Market Reaction

-1.40%

1 alert

-1.40% News Effect

On the day this news was published, GDDY declined 1.40%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Service with a Shrug? Rudeness, Robots and Revenge of the One-and-Done Shopper

TEMPE, Ariz., July 31, 2025 /PRNewswire/ -- Nearly half of U.S. shoppers say customer service provided by businesses is getting worse, according to results from the latest GoDaddy (NYSE: GDDY) Consumer Pulse* survey – yet Gen Z and Millennials remain more upbeat than their parents' generations.

According to GoDaddy's survey of 1,500 U.S. consumers, only 20% of respondents say customer service has improved recently, compared to 42% who perceive a decline in the quality of service received. Among Gen X and Boomers, pessimism is particularly pronounced: just 12% say customer service has improved and 46% believe it has worsened.

In contrast, 29% of Gen Z and 31% of Millennials say support has gotten better, suggesting the next generation of shoppers is more positive about the state of customer care.

"The generational divide is striking. Young consumers are more likely to give businesses the benefit of the doubt, but they also have higher expectations for speed, flexibility and friendliness," said GoDaddy Small Business Trends Expert Amy Jennette.

"Meanwhile, older generations are losing patience, often due to experiences with unfriendly service or limited options to reach a real person. For businesses big and small, the message is clear: customer trust is fragile, and brands must work harder to maintain it."

The survey points to several drivers behind Americans' shifting attitudes:

• Channel Preferences Are Evolving - While 44% of consumers still prefer picking up the phone for support, Gen Z and Millennials are more likely to use live chat, text, or even social media direct messages. However, 86% overall say they prefer to interact with a real human rather than a chatbot.
• Rising Frustration with Service - Among those who feel businesses are falling short of customer service expectations, 66% of those surveyed cite rude treatment as a top gripe while 55% mention a lack of empathy. Nearly half (47%) of respondents are frustrated when there is an absence of customer service options.
• One Strike and You're Out - Younger generations may be more optimistic but are also less forgiving. Nearly a quarter (24%) of Gen Z consumers say they would not give a business a second chance after a mistake, compared to 18% of Gen X and Boomers.

Ways to Win for Small Businesses
Despite these trust issues, the survey results highlight clear opportunities for small businesses to stand out. The majority of consumers (68%) polled expect small businesses to deliver the same level of digital security and professionalism as larger rivals**. Flexibility when enforcing policies, such as returns, and a sense of urgency when resolving issues are among the top signs that a business puts the customer first.

"Small businesses can build authentic relationships by responding to customers. The right technology, especially using the latest almost-magical AI capabilities, makes this possible, even for businesses without large support teams."

GoDaddy Conversations: Empowering Small Business Support
It's hard for small business owners and managers to handle all aspects of operations while still investing the time and effort to consistently communicate effectively with customers. That's where AI-powered tools like GoDaddy Conversations come in; an all-in-one communications tool that brings together messages from web chat, social platforms, and email into a single inbox.

With GoDaddy Conversations, businesses can reply instantly, personalize interactions, and never miss an opportunity to earn trust—no matter how customers choose to reach out. For more information about GoDaddy's full suite of products to help businesses grow, visit www.GoDaddy.com.

*GoDaddy Consumer Pulse is a series of surveys of consumers ages 18 and above conducted throughout the year.
** https://aboutus.godaddy.net/newsroom/news-releases/press-release-details/2025/Security-Double-Standard-Young-Consumers-Reuse-Passwords-Expect-Businesses-to-Be-Fort-Knox/default.aspx  

About GoDaddy
GoDaddy helps millions of entrepreneurs globally start and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services, and accept payments. GoDaddy Airo^®, the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. To learn more about the company, visit www.GoDaddy.com. 

SOURCE GoDaddy Inc.

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SOURCE GoDaddy Inc.

FAQ

What are the key findings of GoDaddy's 2025 Consumer Pulse survey about customer service?

The survey found that 42% of consumers believe customer service is declining, while only 20% see improvement. However, younger generations (Gen Z and Millennials) are more optimistic, with about 30% reporting better service.

How do different generations perceive customer service quality according to GDDY's survey?

The survey shows a clear generational divide: 29% of Gen Z and 31% of Millennials report improved service, while only 12% of Gen X and Boomers see improvement. Older generations are notably more pessimistic about service quality.

What are consumers' main complaints about customer service in 2025?

According to GoDaddy's survey, 66% cite rude treatment as their top complaint, 55% mention lack of empathy, and 47% are frustrated by limited customer service options.

How do customers prefer to interact with businesses in 2025?

86% of consumers prefer human interaction over chatbots, and 44% prefer phone support. Younger generations are more likely to use live chat, text, or social media direct messages.

What expectations do consumers have for small businesses versus large companies?

68% of consumers expect small businesses to deliver the same level of digital security and professionalism as larger companies, including flexibility in policy enforcement and urgency in issue resolution.