Consumers Demand Enterprises Modernize to Improve Ailing Customer Experience, Says Pegasystems Research
On February 18, 2025, Pegasystems Inc. (NASDAQ: PEGA), known as The Enterprise Transformation Company™, released a compelling press statement highlighting the pressing need for businesses to modernize their technological frameworks to enhance customer experiences. Conducted in collaboration with YouGov, the research surveyed 4,000 consumers from North America and the United Kingdom, revealing a stark disconnect between consumer expectations and the current capabilities of businesses.
1. Key Findings from the Research
The research outcomes paint a concerning picture of the current customer service landscape, with consumers expressing frustration over outdated technology. Here are some notable insights:
Urgent Call for Investment
An overwhelming 77% of consumers believe that organizations should prioritize investments in improving customer interactions. Alarmingly, 69% indicated that companies are more focused on technology investments aimed at increasing profitability rather than modernizing IT systems to enhance customer experience.
Declining Interaction Quality
When asked to compare their customer interaction experiences today with those from a decade ago, 56% of respondents indicated that it has worsened. Of these, 26% strongly agreed that the decline in service quality is evident, signifying a troubling trend despite advancements in technology such as generative AI.
Major Pain Points in Customer Service
The study identified several critical issues plaguing customer service:
- Long Wait Times: Two-thirds (63%) of participants highlighted customer service wait times as their primary frustration.
- Repetitive Information Requests: 51% of respondents noted that having to repeat the same information to different representatives was a significant inconvenience.
- Lack of Information: A substantial 40% mentioned that customer service agents often lack the necessary information to resolve issues effectively.
These findings suggest that many customer service agents are hindered by siloed systems, which impede their ability to access vital information promptly.
System Disruptions
The research further revealed that nearly one-third (29%) of respondents encountered situations where customer service agents reported system outages or slow performance. Similarly, 28% of consumers experienced slow-loading websites or apps when engaging with businesses, highlighting the strain on technological infrastructure.
Impact on Customer Retention
The study underscored the repercussions of poor customer experiences, with 48% of respondents sharing negative experiences with friends and family to caution others, while 37% indicated they would switch to competitors offering better service.
2. The Role of Technical Debt
A recent survey from Protiviti, targeting C-level executives, revealed that nearly 70% acknowledged technical debt as a significant obstacle to innovation and modernization efforts. This debt, which encompasses the costs associated with managing and maintaining outdated systems, is estimated to cost U.S. companies approximately $2.41 trillion annually.
3. Expert Commentary
In response to the findings, Don Schuerman, Chief Technology Officer at Pegasystems, emphasized the urgency for businesses to address their technical debt. "Businesses have to start taking the amount of technical debt they are managing seriously and examine ways they can use new innovations such as generative AI to make the existing systems they have in place work better for everyone," Schuerman stated. He highlighted that the failure to meet evolving customer demands is often a direct consequence of organizations carrying substantial technical debt.
Schuerman also pointed to tools like the Pega GenAI Blueprint™, which can catalyze transformation projects and help organizations revamp inefficient, siloed systems that detrimentally impact customer experience and brand reputation.
4. Supporting Resources
For those interested in exploring further, Pegasystems offers a variety of resources related to the Pega GenAI Blueprint:
5. About Pegasystems
Founded in 1983, Pegasystems is dedicated to helping organizations "Build for Change®" through enterprise AI decisioning and workflow automation. Their platform is utilized by many leading businesses to tackle pressing challenges ranging from personalized engagement to operational efficiency. For more information about Pegasystems, visit www.pega.com.
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