In the bustling marketplace of global customer experience, India stands as a fascinating paradox – a nation where ancient relationship-building traditions merge seamlessly with cutting-edge digital expectations. The 2025 CX Global Insights report reveals a compelling story of how Indian consumers are reshaping the very definition of customer experience, setting benchmarks that are both uniquely Indian and globally relevant.
The Experience-First Consumer Economy
Picture this: In a country where 71% of customers actively choose brands because they know the experience will be good, India has quietly become one of the world’s most experience-conscious markets. This statistic places India ahead of most developed economies, signaling a fundamental shift in consumer behavior. Unlike markets where price sensitivity traditionally dominated purchasing decisions, Indian consumers have evolved to prioritize experiential value – a remarkable transformation for an economy still developing its middle class.
What makes this even more striking is that 62% of Indian customers are willing to pay premium prices for better experiences. This willingness to invest in quality experiences positions India uniquely on the global stage, where such figures typically hover around 34-52% in other major markets. It’s a clear indication that Indian consumers don’t just want good products; they demand memorable, emotionally resonant interactions.
The AI Optimism: A Global Anomaly
Perhaps nowhere is India’s distinctive approach to customer experience more evident than in its relationship with artificial intelligence. While consumers in markets like the United States, United Kingdom, and Germany show skepticism about AI benefits – with 47%, 45%, and 43% respectively believing companies will benefit most from AI – Indian consumers display remarkable optimism. A significant 31% of Indian customers believe they themselves will be the primary beneficiaries of AI integration.
This trust differential reveals something profound about the Indian market’s relationship with technology and brand promises. It suggests a consumer base that sees technology not as a threat to personal service, but as an enabler of better experiences. This perspective positions Indian companies to leverage AI more effectively in customer experience strategies, knowing they have an audience ready to embrace innovation.
The Emotional Connection Imperative
The research uncovers a powerful truth about the Indian market: emotional attachment drives everything. Customers who feel emotionally connected to brands show dramatically higher Net Promoter Scores (59 vs 38 for functionally satisfied customers), better retention rates (70% vs 52%), and become powerful advocates who recommend brands 8.24 times annually compared to just 7.26 times for functionally satisfied customers.
This emotional dynamic is amplified by India’s strong word-of-mouth culture. An impressive 84% of Indian customers say recommendations influenced their brand choices – one of the highest rates globally. This creates what researchers call the “Advocacy Ripple Effect,” where customers acquired through recommendations become even more active promoters themselves, recommending brands 9.79 times annually.
The Forces Driving Success
Indian customer experience is primarily driven by what researchers call “hygiene factors” – Certainty and Fair Treatment – suggesting that getting the basics right remains paramount. However, Indian brands also excel in differentiators like Enjoyment and Status, indicating a market that values both reliability and delight.
This dual focus creates opportunities and challenges. While brands like mobile network providers and insurers lead with 54% emotional attachment rates, traditional sectors like banking and supermarkets lag at 49% and 48% respectively, highlighting significant room for improvement in fundamental service sectors.
Global Implications and the Path Forward
India’s CX landscape offers valuable lessons for global markets. The combination of high experience expectations, AI optimism, and strong emotional drivers suggests a market that’s leapfrogging traditional customer experience evolution. Indian consumers aren’t just catching up to global standards – they’re setting new ones.
The key differentiator between best and worst performers isn’t just meeting expectations – it’s exceeding them consistently. The most successful brands create memorable experiences that build emotional connections, leading to higher customer lifetime values and organic acquisition through recommendations.
The Indian CX story is ultimately one of transformation – from a price-sensitive market to an experience-first economy where trust, emotion, and technology converge to create unprecedented opportunities for brands willing to invest in genuine customer relationships. For global businesses, India isn’t just another market to enter; it’s a laboratory for the future of customer experience.
Balaji Pandiaraj is the Group Head CX (Customer Experience) & AMD (Automotive & Mobility Development) at Ipsos India.Views expressed are the author’s personal.