AI investments alone do not create a better customer experience

Companies are currently investing at a rapid pace in artificial intelligence, automation, and personalization. Yet a key foundation is often missing: a solid understanding of the consumer’s perspective. Instead of starting with customers’ actual needs, many investment decisions are guided solely by technological possibilities and current market trends. The result is a growing disconnect between where companies focus their resources and what consumers actually consider important for a positive customer experience.

This is exactly where the new Merkle study, «The Invisible Advantage: Five CX Imperatives for AI That Earns Its Place,» comes in. Based on a global survey of 2,500 consumers in 23 countries, as well as qualitative interviews in eight markets, it reveals which factors actually shape customer experiences and where investments in AI and customer experience can create the greatest value.

Personalization Falls Short of Expectations

Although companies have been investing heavily in personalization for years, the actual added value for many consumers remains limited. Yet the conditions today are better than ever: Companies have access to extensive customer data, modern analytics tools, and powerful AI applications. Nevertheless, just under half of those surveyed consider personalized content and recommendations to be truly helpful. The reason often lies not in a lack of data, but in how it is used. Many personalization efforts focus primarily on past interactions, while consumers expect support with their current concerns and future decisions.

There is generally a willingness to share personal data in exchange for better experiences: Four out of five respondents view data-driven personalization positively, provided that data protection and data security are guaranteed. The challenge, therefore, lies not in accessing data, but in using it effectively.

Security as a Key Component of the Customer Experience

Data protection and security have become central components of a good customer experience for consumers. Ninety percent of respondents rate them as important or very important—making them among the most important requirements of all. At the same time, skepticism toward AI systems is on the rise. Consumers are primarily concerned about the protection of their data and privacy. Added to this are doubts about the reliability of AI-generated results, as well as questions about the extent to which humans still monitor and control these systems.

For companies, this means that security is no longer merely a compliance issue. It is a key factor in building trust and customer loyalty. Companies that use data responsibly and communicate this transparently gain a significant competitive advantage.

Customer value is what matters—not the technology

One notable finding of the study: Only 43 percent of consumers consider it important for their shopping experience to be supported by new technologies or AI. This puts technology at the bottom of the list of all experience factors surveyed. Above all, customers expect simple, reliable, and secure processes—the technology behind them plays a secondary role for them. Ideally, it remains largely invisible.

From the customer's perspective, what matters is not which technology is used, but whether it simplifies the purchasing process, reduces wait times, or solves problems more quickly. Companies should therefore focus less on technological showmanship and more on concrete improvements to the customer experience.

There is a wide gap between AI investments and customer needs

There is a significant gap between many companies’ enthusiasm for AI and consumers’ actual expectations. This discrepancy is particularly evident when it comes to AI agents: Although the topic is currently one of the most talked-about trends, only 28 percent of consumers express a strong interest in using AI agents for more complex interactions with brands in the future.

A tension is also evident in customer service: Only 18 percent want primarily digital interactions in this area, while 51 percent explicitly prefer human assistance. At the same time, service and support are among the areas where consumers across all industries see the greatest need for improvement. The results suggest that successful AI strategies should not be based on technological possibilities, but rather on specific customer problems. The key is determining where and in what ways AI actually adds value—and where human interaction remains indispensable.

Loyalty only develops after the purchase

Across nearly all industries, consumers see the greatest need for improvement in the post-purchase phase. Customer service, repairs, maintenance, customization, and repeat-purchase processes are mentioned particularly often. Many companies still view this area primarily as a cost factor—but the study reaches a different conclusion: The post-purchase phase has a significant impact on loyalty, repurchase rates, and long-term growth.

After all, a customer relationship already exists at this point. Customers have built trust, shared data, and made a purchase decision. Every subsequent interaction influences whether a buyer will become a long-term customer. The emotional aspect is particularly relevant here: Two-thirds of consumers say they develop a stronger connection to brands when experiences feel personal and human.

Patrick Fromm, Chief Client Officer at Merkle Central Europe, sums it up: «For customers, successful AI isn’t defined by its technology, but by the value it delivers. Those who build trust, simplify processes, and enable relevant experiences will set themselves apart in the long run.»

Source: www.merkle.com