CX Roundtable March 2026

CX Under Pressure in 2026

Customer experience has become a decisive factor in Australian business performance. Retailers dominate top rankings, with nine of the ten leading brands in KPMG's 2025/26 Customer Experience Excellence report coming from that sector, reflecting strong gains in empathy, resolution, and meeting expectations. The national CX score climbed 1.67 points to 7.30, signalling progress—but economic pressures and shifting consumer behaviour threaten to erode these advances.

Consumers now expect more than transactions; they demand engagement, relevance, and consistency across channels. Financial strain amplifies scrutiny of value, pushing brands to justify prices through perceived fairness and emotional connection rather than cost alone. In a landscape where products commoditise quickly, superior CX often determines loyalty and retention, especially as Australians show preference for local support and human elements in interactions.

AI introduces both opportunity and risk. Tools promise personalisation and instant resolution, yet widespread adoption heightens concerns over transparency and trust. Reports highlight that most consumers feel experiences should improve despite AI investments, with low trust in responsible use creating a credibility gap. This tension pits operational efficiency against the need for reliability, forcing leaders to balance automation with meaningful human oversight.

Inaction carries clear costs. Businesses already forfeit significant revenue to subpar service, and as expectations rise—fueled by global benchmarks and local preferences—the divide between leaders and laggards widens. Australian customers, attuned to quality from international standards, increasingly switch providers over unresolved issues or impersonal treatment.