SAP Engagement Index UK Report Reveals CX Failures Rooted in Data and ERP Integration Gaps

Disconnected customer experiences are now directly impacting retention and revenue. SAP has released the SAP Engagement Index UK report, which signals a measurable breakdown between customer experience ambition and operational execution. The findings point to a structural issue, enterprise systems, data, and processes are not aligned to deliver consistent engagement, resulting in 75% of consumers reporting disappointment despite sustained investment in AI and digital transformation.

UK consumers are increasingly abandoning brands that fail to deliver connected, seamless experiences, according to the report. The disconnect is driven by the difference in what customers actually experience and what businesses believe they deliver.

The findings show that while 81% of UK businesses believe they provide seamless omnichannel experiences, only a small minority acknowledge gaps in execution. Just one in five companies recognize that their customer experiences are not fully connected.

At the same time, consumers are signaling clear dissatisfaction. More than four in five, 82%, say they are put off by disorganized interactions, such as having to repeat information or being passed between teams. Nearly half say brands do not understand them as individuals.

The Data and AI Paradox

SAP describes the “Engagement Divide” as a structural gap between customer expectations and enterprise capabilities.

The divide is not just a perception issue. It has direct implications for retention and revenue. Customers increasingly compare experiences across brands in real time and are willing to switch quickly when interactions feel fragmented or impersonal.

64% of brands agree their data is too unstructured to be used effectively, creating a situation where companies are “building on quicksand.” This technical debt is increasingly costly, as 34% of consumers have already stopped paying attention to brands because they can now shop using their own AI assistants.

Sara Richter, CMO, SAP Engagement Cloud, said, “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.”

While 56% of consumers say their favorite brands deliver connected experiences, the broader market is falling short, indicating uneven execution across industries.

Data Fragmentation Limits AI and Personalization

The research points to data and operational silos as the root cause of disconnected experiences. A majority of UK organizations report challenges in using customer data effectively:

• 63% cannot access or use customer data in real time
• 71% report holding “dark data” that is not accessible or usable

These limitations directly impact the effectiveness of AI initiatives. While 80% of businesses view AI as essential for customer retention, only about a third of consumers say AI is improving their interactions with brands in a meaningful way.

This gap suggests that AI investments are not yet translating into operational improvements at the customer experience level.

Shift Toward Enterprise-Wide Engagement Models

The findings indicate that engagement is no longer a “marketing-only” responsibility but must become a shared business discipline. Most companies (78%) plan to invest in AI-powered engagement platforms in 2026, with a focus on connecting data across marketing, sales, service, commerce, and ERP systems.

SAP’s research emphasizes that engagement must move beyond a marketing function to become an enterprise-wide capability. Delivering consistent experiences requires shared, real-time customer context across all business functions.