Smart Communications has released its 2026 Customer Experience Benchmark research, examining customer engagement trends, particularly within regulated industries. The study explores consumer expectations around communication, satisfaction levels, attitudes toward AI, and factors that influence trust and customer retention.
The study found that consumer expectations for communication remain high, with 63% of participants stating they would switch providers if they were dissatisfied. Among Millennials and Gen Z, this figure rises to 72% and 70% respectively.
According to the research, 52% of consumers rated their provider's communication as satisfactory, a decrease compared with previous years. Respondents cited issues such as ineffective communications and problems with form processes. The study also found that dissatisfied customers are more likely to seek assistance through human channels, which can increase operational costs and affect customer trust.
The research indicates mixed views on AI in customer experience. Overall, 56% of respondents believe AI improves customer experience. Concerns identified by participants include data security and the level of human oversight involved in AI-driven interactions.
The study found that 82% of respondents want organisations to be transparent about their use of AI, with support for transparency highest among older age groups. Millennials and Gen Z reported higher levels of trust in AI than Baby Boomers.
For regulated industries, the research highlights the role of communication in situations involving healthcare, insurance, and financial decisions. The findings also suggest that communication quality and data collection processes can affect customer retention, with approximately two-thirds of respondents indicating they would abandon processes they considered overly complex or cumbersome.
The findings indicate that customer expectations continue to evolve alongside digital technologies. The research suggests that organisations may need to adapt their communication strategies, technology use, AI governance practices, and customer experience processes to meet changing consumer expectations.
The study concludes that addressing communication and process-related challenges may contribute to improved customer satisfaction, customer retention, and competitive positioning.
