New research has revealed a fundamental mismatch between what UK consumers expect from the digital retail experience and what retailers are actually delivering – and it could be costing retailers millions.
The study commissioned by MSQ DX – The Perception Gap: Why Digital Leaders Are Losing Customers They Don’t Know They’re Losing – surveyed 1,000 UK consumers and 150 senior digital leaders from enterprises with turnovers between £50m and £1bn+. It revealed a widening disconnect between business priorities and customer expectations that is costing businesses in terms of trust and loyalty as well as hitting the bottom line.
One-third (33%) of customers switched brands in the past year due to poor digital experiences – rising to a shockingly high 64% among 25–34‑year‑olds. This highlights the disproportionate risk of not meeting the expectations of younger, digitally-native consumers.
A blind spot for business leaders
Despite this, business leaders dramatically underestimate the scale of the problem. On average, they believe just 24% of customers switch for digital‑experience reasons – with over 13% assuming none leave at all. This misalignment comes as cart abandonment alone has risen past 85%, costing UK businesses an estimated £38bn in lost revenue, up 11% year‑on‑year.
According to MSQ DX, the issue is not skills or budgets, but a profound “perception gap” – resulting in business leaders making multi-million-pound decisions based on inaccurate data. Consumers overwhelmingly benchmark digital experiences not against brands’ direct competitors but against leading tech platforms. Amazon is the top reference point (26%), followed by Google (20%), banking apps (19%), and Netflix/Spotify (18%).
Crucially, leaders also misread why customers abandon purchases. While businesses believe slow load times and lack of payment options are the biggest triggers, consumers say the most off‑putting issue is having to repeat information they’ve already provided (35%). This is followed by difficulty contacting customer service (29.3%) and poor navigation or complicated checkout flows (28%).
Commenting on the need for retail leaders to look more closely at the digital retail experience and what customers actually want from it, Rebecca Crook, CEO of MSQ DX (UK) said: “In 2026 businesses will live or die by their digital experience and our research stands to demonstrate that.” She added: “Leaders understand that digital defines brand value. But they can’t measure the problem, don’t understand the benchmark, misread customer readiness, and are investing in the wrong future.”
The “AI illusion”
The report also identifies an “AI illusion”. More than 90% of leaders believe customers are comfortable with AI-powered customer service. In reality, just 42% say they are comfortable, while 28% are uncomfortable and nearly 15% actively avoid AI‑enabled interactions.
Instead, consumers prioritise 24/7 service availability (28%), real-time order tracking (32%), and seamless omnichannel experiences (25%).
Mark Rodseth, CTO at MSQ DX (UK), said: “Building AI without understanding adoption barriers is like building a bridge without checking if people want to cross it. To close these perception gaps, businesses need to stop assuming and start measuring what matters. Future success depends on building for the customers they have, not the ones they wished they had.”
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