Study: Most Executives Say Their Customer Experience Programs Are 'Broken'

Business leaders chasing AI-driven efficiency often overlook how AI can benefit the people who matter most: their customers, according to new research conducted by WSJ Intelligence and Stagwell agency Code and Theory. 

The study found that just 28% of 800 c-suite executives surveyed say they are leveraging new technologies to fundamentally improve customer experiences (CX). 

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In fact, most respondents (93%) characterized their CX as “broken.” Even though 94% of the respondents agree that CX strategy contributes directly to their business's success. 

Per the study, companies mastering digital CX generate 30% more revenue than customer-experience laggards.  

The report also found:  

  • 76% of c-suite respondents say they’re behind on AI transformation 

  • 88% believe the promise of AI-driven personalization hasn’t been realized 

  • 44% report having an advanced understanding of AI’s emotional potential 

  • 86% expect CX to become a top-tier investment priority  

When executives identify transformation obstacles, they point to internal failures rather than external constraints: leadership misalignment (49%), creative talent shortages (44%) and organizational silos (43%); 56% cite “cultural dysfunction” as a primary barrier. 

Dan Gardner, co-founder of Code and Theory, says: “The companies winning with AI aren't following best practices, they're inventing new categories of customer value by connecting data, services and experiences in ways that seemed impossible two years ago ...The question isn't what AI can do, it's what only your brand can do with AI that no one else can replicate.”  

The study offers commentary from some of those surveyed as well as a “road map” to help companies use AI as a CX booster.   

The companies that win will use agentic AI to eliminate the organizational friction customers experience but can’t see, turning seamless experiences from competitive advantage into industry standard, according to the report. “Success doesn’t come from automating existing processes. It comes from understanding what motivates customers and building organizations capable of delivering those experiences consistently.”  

See more from the report, “The Experience Gap: AI’s Imminent Impact On CX,” here

 

 

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