UK consumers are increasingly abandoning brands due to disconnected and inconsistent experiences, yet most businesses remain unaware of the scale of the issue, according to new research.
The 2026 SAP Engagement Index highlights a growing “Experience Divide” between what consumers expect and what organisations believe they deliver. While 80% of UK businesses say they provide seamless omnichannel experiences, only 20% acknowledge that their customer journeys are not fully connected.
In contrast, consumer sentiment tells a different story. The research found that 82% of UK consumers are frustrated by disorganised interactions, such as being asked to repeat information or being passed between teams. Meanwhile, 45% say brands do not understand them as individuals.
Expectations are rising rapidly. More than half (56%) of consumers say their favourite brands already deliver seamless, joined-up experiences, raising the benchmark for the wider market.
For e-commerce leaders, the findings underline the commercial risk of fragmented customer journeys. Poor experiences not only impact conversion, but also erode loyalty and increase customer churn in an increasingly competitive digital landscape.
AI is widely seen as part of the solution, with 80% of businesses saying it is essential for customer retention in 2026. However, only a third of consumers feel AI is currently being used in ways that meaningfully improve their experience.
A key barrier is data. The report reveals that 63% of UK organisations cannot use customer data in real time, while 64% say their data is too unstructured and 71% struggle with “dark data” that cannot be accessed or used effectively.
Sara Richter, CMO at SAP Engagement Cloud, said brands must adapt quickly to changing expectations. “With AI at their fingertips, customers can compare, decide and switch in an instant. Those micro moments now determine whether a brand wins or loses the relationship,” she said.
To close the gap, SAP argues that organisations must treat customer engagement as an enterprise-wide capability, rather than a function limited to marketing. Nearly 78% of businesses plan to invest in AI-powered engagement platforms in 2026, with 31% prioritising the integration of customer data across systems.
The message for retailers is that without connected data and consistent experiences, even strong brands risk losing relevance in a market where customer expectations continue to accelerate.
Photo by chaitanya pillala on Unsplash
