The latest report from SAP Engagement Cloud has unveiled a pronounced ‘Experience Divide’ between brands and consumers in Australia. The 2026 Engagement Index, based on a survey of 600 senior decision-makers and 1,000 consumers conducted from December 24, 2025, to January 16, 2026, reveals stark differences in how customer experience is perceived by the two groups.
At the forefront of the findings, an overwhelming 80% of consumers reported that disorganised interactions with brands discourage them from engaging. In contrast, 79% of businesses surveyed believe they are delivering a seamless omnichannel experience, though only 21% of these companies admit that their interactions are not fully integrated. This discrepancy signals a troubling gap in the delivery of cohesive customer experiences, which could have implications for brand loyalty.
The report also highlights significant challenges regarding personalisation. A notable 44% of consumers expressed that they feel brands “don’t understand them as people,” indicating a critical disconnect between brands’ efforts to tailor experiences and actual consumer perceptions. Despite this, 80% of businesses view artificial intelligence (AI) as a key component for customer retention by 2026. However, only slightly more than one-third of consumers believe that AI improves their interactions with brands in a meaningful way.
Further complicating matters, the research indicates that Australian brands struggle to effectively utilise customer data. A staggering 61% of brands reported an inability to leverage customer data in real-time, while 63% identified their data as too unstructured. Additionally, 64% of businesses encountered issues with ‘dark data’—information that is collected but not readily accessible or usable. These challenges hinder brands from delivering the personalised experiences that consumers increasingly expect.
Looking to the future, the report shows that 77% of businesses plan to invest in AI-powered engagement platforms by 2026. Moreover, 28% prioritised the integration of customer and stakeholder data across various systems as a top initiative for the coming year. Such investments signal a recognition among businesses of the need to bridge the experience gap and enhance customer satisfaction.
Sara Richter, CMO of SAP Engagement Cloud, commented on the implications of the findings, stating, “Customer expectations are moving at a new speed. With AI at their fingertips, people compare, decide, and switch in an instant. Those micro moments now determine whether a brand wins or loses the relationship.” Her remarks underscore the urgency for brands to adapt to rapidly changing consumer expectations.
Mark Ritson, a professor and founder of MiniMBA, added to the discourse, noting that “Engagement isn’t something one department can fix. Every team shapes the brand, and real progress happens when they work from the same understanding of the customer.” He emphasized that a shared customer perspective across departments is essential for leveraging AI effectively in delivering personalised experiences.
The findings from the SAP Engagement Cloud report illustrate a significant outlook for brands operating in Australia. While there is optimism about the role of AI in enhancing customer engagement, the data points to a notable gap in consumer satisfaction and brand understanding. As businesses gear up to invest in AI technologies and data integration, the challenge remains to translate these efforts into meaningful improvements in customer experiences, ultimately shaping the future of brand-consumer relationships.
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