LONDON, UK – In a world where over 60% of brand interactions happen online, digital platforms are more than just a touchpoint – they’re the front door to every brand experience. Yet, new research from VCCP’s digital experience agency Bernadette and customer experience research agency Watermelon uncovers a stark reality: one in three (36%) digital experiences are actively failing users, pushing frustrated customers straight into the arms of competitors.
With the UK’s digital economy at stake, the report estimates that poor user experiences are costing brands a staggering £3.07 trillion ($3.8 trillion) in lost revenue every year. The culprit? A growing disconnect between what brands promise and what they actually deliver across their apps and websites.
To address this crisis, Bernadette and Watermelon have unveiled the Digital Experience Index (DXI)—a proprietary benchmarking tool designed to assess and elevate brand performance in the digital space. By surveying 4,600 Brits, the DXI pinpoints where brands are missing the mark and provides a roadmap to enhance customer satisfaction, loyalty, and retention.
The report surveyed eight sectors: telecoms, healthcare, travel & transport, media, wellbeing, retail, fintech and dating. Results show that Fintech and travel and transport came out as the highest performing sectors including brands such as Uber, Monzo and Booking.com scoring the highest marks, compared to retail and dating apps which were some of the lowest.
The report also revealed that half of consumers feel brands fail to consistently deliver outstanding digital experiences, and end up going elsewhere because of frustrating and unhelpful UX.
In the finance sector, the DXI report found that customers are walking away from products and services because they can’t understand what they’re being asked to do, with many customers ‘giving up’ on apps because of confusing jargon and complicated processes, actively switching to competitors with more straight-forward digital experiences.
The report aims to help brands close the customer digital experience gap, a phrase which defines the measurable distance between good and great, between where brands are and where they need to be. They discovered that there’s an experience gap of 40 percentage points, with the top-ranking brand scoring 87% customer satisfaction, compared to the lowest-ranking brand, which only scored just 47%.
The DXI also spotlights the critical role of diversity, equity, and inclusion (DE&I) in digital design. A staggering 60% of consumers believe brands are not genuinely committed to inclusivity, leading to disengagement and lost trust. Standout performers like Spotify, The Guardian, and Booking.com have been recognized for crafting digital experiences that prioritize accessibility – whether through adjustable viewing options or inclusive search filters that reflect diverse customer needs.
Iva Johan, CSO at Bernadette said: “In an era dominated by digital channels, the difference between good and great digital experiences has never been more important for building customer satisfaction and brand loyalty. We know from our survey that today’s customers’ expectations reach beyond brands just digitizing existing services. It requires careful consideration for customer needs, the problems they need to solve, while ensuring every interaction is seamless and intuitive. Experience should flow effortlessly across channels when needed, authentically reflecting the brand’s values and personality at each touchpoint.
“When done correctly it not only strengthens customer relationships but also creates meaningful differentiation in an increasingly competitive digital landscape. However, in these times, brands need data to justify digital improvements, so we’ve created a new way to measure experiences with both numbers and real human insights.”
Sian Kerr, CSO at Watermelon, added: “It’s not good enough to just have a good app or a good website; brands need to consider that customers think about brands in the context of their entire world, and not in isolated interactions, sectors or experiences.”
“A lot of internal teams are drowning in metrics that measure performance, but do not go deeper into the why behind it. This indexing solution provides the best of both worlds: combining numbers at scale with rich in-depth insights; giving brands an understanding of what best-in-class looks like and how to get there.”
The Digital Experience Index is available to download here.