Australia is significantly struggling with customer experience (CX), as highlighted by Forrester’s global Customer Experience Index (CX Index™) 2025 rankings. The report reveals a concerning multi-year downward trend, with a substantial 37% of Australian brands experiencing a drop in their CX scores. This widespread decline impacts most industries across Australia, Singapore, and India, where a combined 58% of brands saw no change in their scores, indicating a stagnant or worsening situation.
Isabelle Zdatny, Head of Thought Leadership at Qualtrics XM Institute, comments, “Forrester’s Customer Experience Index serves as a critical call to action for organisations looking to strengthen loyalty and market share amid AI transformation and economic uncertainty. As consumer sentiment continues to decline, organisations face escalating risks – with poor customer experience already putting nearly $4 trillion in sales at risk annually. The companies that will succeed in this increasingly challenging environment are the ones able to translate a deep understanding of their customers’ needs, behaviours, and motivations into exceptional experiences that drive lasting trust and loyalty.
Globally, the challenges driving this decline are persistent:
- Weaker employee experience
- Waning customer obsession
- Disappointing tech implementations
- Economic volatility
These factors continue to influence how consumers perceive CX quality, leading to a widening gap between the customer experience brands intend to deliver and what customers actually receive.
Global trends and Australia’s position
While some regions saw slight improvements or stability, Australia’s situation reflects a broader global erosion of customer experience.
Key findings from the global Customer Experience Index include:
- North America: A quarter of brands have underperformed for two consecutive years, with 25% of US brands declining in 2025.
- Europe: Some brands showed improvement, leading to nearly half of industries seeing gains, with 7% of brands improving their scores.
- Asia Pacific (including Australia): The region experienced widespread brand losses, hindering progress across most industries.
Pete Jacques, principal analyst at Forrester, notes, “Customer experience continues to erode worldwide, reflecting a concerning multiyear downward trend and a shift in sentiment from positive to neutral. While the changes may seem subtle, they are significant and cannot be ignored. As customer loyalty declines, brands must focus on providing stronger customer experiences to reverse the trend. Even a minor improvement to a brand’s customer experience quality can reduce churn and increase share of wallet.”
The Urgency for Australian Brands
The data underscores an urgent need for Australian brands to re-evaluate and enhance their CX strategies. With a significant portion of brands experiencing declining scores and a majority remaining stagnant, Australian businesses risk losing customer loyalty and market share. Focusing on improving customer experience can not only reverse this trend but also lead to reduced churn and increased share of wallet.
“Since brand promises shape customer expectations, consistently delivering on those promises is critical to customer experience quality and consumer loyalty. Yet most organisations struggle to connect brand and customer experiences. Forrester’s Total Experience Score proves that companies successfully unifying brand and customer experience insights are best placed to build authentic, trusted customer relationships that drive loyalty and sustained growth”, says Zdatny.