US businesses are losing significant revenue as they struggle to meet rising customer expectations around digital experiences, according to new research from AND Digital.
The Winning the intelligent customer report found that 66% of organisations are unable to deliver the level of customer experience consumers now expect, resulting in lost revenue during ongoing economic uncertainty.
The study, which surveyed 250 C-suite and data leaders across mid-market and enterprise organisations in the US, highlights an urgent need for CEOs to prioritise customer experience as a core growth and retention strategy. Six in ten respondents reported revenue losses over the past three years due to poor customer experience driven by inadequate use of data.
Data and technology are increasingly seen as critical enablers, with 80% of leaders identifying data as the most important factor in delivering effective customer experiences through personalisation and faster response times. Encouragingly, 82% of organisations increased their customer experience budgets over the past year, signalling a shift toward long-term customer retention.
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However, concerns remain around growing inequality, with 73% of respondents warning that future customer loyalty will be dominated by companies with the largest technology budgets.
Commenting on the findings, Kenn van Hauen, Chief AI Officer at AND Digital, said customer experience has become a boardroom priority, noting that businesses able to turn customer data into real-time, personalised interactions will be best positioned to retain loyalty and drive sustainable growth.
Kenn van Hauen, Chief AI Officer at AND Digital, commented: “Customer experience is now a boardroom priority, and rightly so. Businesses are recognizing that acquisition alone won’t drive long-term growth. Retention, loyalty, and real-time engagement are the new battleground. Experience is now the ultimate differentiator, but most organizations are still playing catch-up.”
“Business leaders understand the importance of data, and are beginning to prioritise retention over acquisition, but without the infrastructure to act on that data in real-time, too many are losing customers they can’t afford to lose. This is a wake-up call. The winners in this space will be those who can turn their customer data into consistent, intelligent and personalised experiences.”
