Customers Are Leading More CX Investment Decisions Than Competitors
Customer experience (CX) leaders differentiate themselves by prioritizing customer feedback over competitor actions when making investment decisions, according to a Merkle study surveying 820 global business leaders. The research classifies 19% of respondents as “CX Leaders,” characterized by customer-centric strategies, advanced technology investments, and intentional alignment with business objectives. Conversely, “CX Laggards” lack engagement with CX initiatives, which contributes to slower business growth.
CX Leaders exhibit a stronger commitment to a customer-first culture (65% vs. 50% of the average organization) and have had codified CX strategies in place for several years (81% vs. 71%). They also lead in marketing technology integration (54% vs. 40%) and AI-driven CX solutions, with 72% having invested in AI compared to just 33% of the overall sample. Their focus on customer satisfaction (56% vs. 52% of the average organization) underscores their customer-centric mindset.
A key finding reveals that CX Leaders base their investment decisions more on customer feedback (58%) than on competitor actions (53%). In contrast, most organizations prioritize competitor actions (60%) over customer insights (37%), highlighting a fundamental difference in strategic approach. Despite this, companies face challenges in expanding CX investments, with top barriers including organizational complexity (36%), uncertainty about which initiatives to pursue (36%), lack of cross-department coordination (33%), and concerns over ROI from past CX initiatives (31%).
CX Laggards struggle more with unclear ROI and inconsistent executive buy-in, while CX Leaders benefit from a clearer strategic vision and stronger alignment with customer needs. For companies aiming to enhance their CX maturity, focusing on customer feedback, improving internal coordination, and leveraging AI-driven solutions will be key to driving meaningful business growth.
Key Actionable Takeaways:
Prioritize Customer Feedback Over Competitor Moves – Make CX investment decisions based on direct customer insights rather than reactive competitive strategies.
Develop a Customer-First Culture – Foster an organization-wide commitment to CX excellence by aligning teams and strategies around customer needs.
Codify a Long-Term CX Strategy – Establish and maintain a documented CX roadmap that evolves with customer expectations and business goals.
Invest in AI-Driven CX Solutions – Leverage AI to enhance personalization, automate support, and improve customer interactions at scale.
Improve Marketing Technology Integration – Ensure seamless connectivity between CX tools, marketing platforms, and data sources to deliver a unified experience.
Measure Success Through Customer Satisfaction – Use customer satisfaction metrics rather than competitive benchmarks to evaluate CX program effectiveness.
Streamline CX Initiatives Across Departments – Address organizational complexity by aligning CX efforts across teams and reducing operational silos.
Clarify CX Investment Priorities – Conduct thorough assessments to determine the most impactful CX initiatives and ensure clear ROI tracking.
Strengthen Executive Buy-In for CX Programs – Build cross-functional support by demonstrating the direct link between CX investments and business growth.
Address ROI Challenges with Data-Driven Insights – Use advanced analytics to quantify the impact of CX initiatives and justify ongoing investments.
