93% of Executives Admit Their Customer Experience Is 'Broken'

Rhea-AI Summary

A new research report by WSJ Intelligence and Stagwell's (NASDAQ: STGW) agency Code and Theory reveals a significant disconnect in customer experience (CX) implementation. The study of 800 C-suite executives found that 93% admit their CX is "broken", despite 94% acknowledging CX strategy's direct impact on business success.

Key findings show that companies excelling in digital CX generate 30% more revenue ($1.4 billion on average) than laggards. However, only 28% of executives are leveraging new technologies for innovative customer experiences. The study identified major challenges, with 76% of C-suite respondents behind on AI transformation and 88% believing AI-driven personalization hasn't reached its potential.

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Negative

• 93% of executives admit their CX is 'broken'
• 76% of C-suite respondents are behind on AI transformation
• 88% believe AI-driven personalization hasn't been realized
• Cultural dysfunction cited by 56% of industry leaders as primary barrier
• Significant internal barriers including leadership misalignment (49%) and organizational silos (43%)

Insights

Business Strategy Analyst

Stagwell positions itself strategically in AI customer experience consulting as research reveals massive gaps for businesses to address.

This research report from WSJ Intelligence and Stagwell's agency Code and Theory uncovers significant market opportunities in the AI-driven customer experience space. The finding that 93% of executives view their customer experience as "broken" represents a substantial addressable market for Stagwell's consulting and implementation services.

The research highlights a critical disconnect: while 94% of executives acknowledge CX directly impacts business success, only 28% are leveraging new technologies for innovative experiences. Companies excelling at digital CX generate 30% more revenue ($1.4 billion on average) than laggards – a compelling business case for investment.

From a competitive positioning standpoint, this report establishes Stagwell as a thought leader in the rapidly evolving AI-CX intersection. By identifying that barriers are primarily organizational rather than technological (49% cite leadership misalignment, 44% creative talent shortages), Stagwell can position its services as solving these specific high-value problems.

The research timing is strategic, as 86% of executives expect CX to become a top-tier investment priority, suggesting growing demand for Stagwell's expertise. With 76% of C-suite respondents acknowledging they're behind on AI transformation and 88% believing AI-driven personalization promises remain unfulfilled, Stagwell is well-positioned to capitalize on this recognized need across industries.

New WSJ Intelligence and Code and Theory research report shows that businesses are failing to harness AI's potential to fundamentally reshape customer relationships.

NEW YORK, Oct. 2, 2025 /PRNewswire/ -- Business leaders chasing AI-driven efficiency often overlook how AI can impact the people who matter most: their customers, according to new research conducted by WSJ Intelligence and Code and Theory, a Stagwell (NASDAQ: STGW) agency.

The report, titled "The Experience Gap: AI's Imminent Impact on CX," found that only 28% of the 800 C-suite members surveyed say they are leveraging new technologies to create digital customer experiences (CX) that are "innovative or adaptive." In fact, the vast majority of respondents (93%) characterized their CX as "broken," even though 94% of the respondents agree that CX strategy contributes directly to their business's success.

Companies mastering digital CX are redefining entire industries. They generate 30% more revenue — $1.4 billion on average — than customer-experience laggards.

The study found that success demands rethinking customer relationships from the ground up. AI offers the path to emotionally intelligent customer connections that drive lasting competitive advantage.

Among the most notable takeaways:

• 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

The primary barriers to CX transformation are cultural and organizational rather than technological. While 53% of respondents say they're "very ready" for transformation, the gap between intention and capability reveals deep structural issues.

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%). Even among industry leaders, 56% cite cultural dysfunction as a primary barrier.

Don McGuire, Senior Vice President and Chief Marketing Officer, Qualcomm Incorporated, says: "When you're integrating AI tools into your workflows, you have to take a human-centric approach and plan for that as the outcome. Think about your customer interactions. Can they be improved? Can an interaction with an AI be better than one with a human? That's not easy and it takes a lot of planning. The companies taking leadership roles will be the ones that vault ahead."

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. Find the spaces where your customers are underserved, frustrated or forced to cobble together solutions from multiple providers. Then use AI to own that entire experience. 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 survey demographics comprised 800 U.S.-based senior executives at companies with at least $500M in annual revenue, with an even split between CEO (33%), CTO/CIO (33%) and CMO (33%).

Learn why the winners are winning, how you can leverage AI to deepen emotional connections with customers and what the roadmap for success looks like.

Download "The Experience Gap: AI's Imminent Impact on CX" report here.

About Code and Theory
The Code and Theory Network is the only technology and creative network with a balance of 50% creative and 50% engineers. Our unique makeup makes us the place where CMOs, CTOs and CIOs come together to drive results for their businesses. We partner with our clients to redefine what is possible to create lasting impact and drive long-term growth. Part of Stagwell, Code and Theory offers a global footprint and the capabilities to work across the entirety of the customer-facing journey, and implement the technology that powers it. The network includes the flagship agency Code and Theory as well as Kettle, Instrument, Left Field Labs, Truelogic, Create. Group, Rhythm and Mediacurrent. Code and Theory clients include Amazon, JPMorganChase, Microsoft, NBC, NFL and Yeti. For more, visit codeandtheory.com

About WSJ Intelligence
WSJ Intelligence conducts best-in-class bespoke thought leadership for commercial clients of The Wall Street Journal, Barron's, MarketWatch, Mansion Global & Investor's Business Daily. Using various qualitative and quantitative methodologies and rigorous analysis, WSJ Intelligence collaborates with clients to create compelling and clear executive-level narratives and uses our world-class brands as distribution channels. WSJ Intelligence is a unit of The Wall Street Journal advertising department. The Wall Street Journal news organization was not involved in the creation of this content.

Media Contact
Kenneth Hein
kenneth.hein@codeandtheory.com

 

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SOURCE Stagwell Inc.

FAQ

What percentage of executives say their customer experience is broken according to the Stagwell (STGW) study?

According to the study, 93% of executives characterized their customer experience (CX) as 'broken', despite 94% acknowledging CX's direct impact on business success.

How much more revenue do companies with strong digital customer experience generate?

Companies that excel in digital customer experience generate 30% more revenue, averaging $1.4 billion more than customer-experience laggards.

What are the main barriers to CX transformation according to the Stagwell study?

The main barriers are cultural and organizational, including leadership misalignment (49%), creative talent shortages (44%), and organizational silos (43%). Additionally, 56% of industry leaders cite cultural dysfunction as a primary barrier.

What percentage of executives are effectively using new technologies for innovative customer experiences?

Only 28% of executives say they are leveraging new technologies to create digital customer experiences that are 'innovative or adaptive.'

How many executives participated in the Stagwell (STGW) customer experience study?

The study surveyed 800 U.S.-based senior executives from companies with at least $500M in annual revenue, equally split between CEOs (33%), CTO/CIOs (33%), and CMOs (33%).