its 2026 and Everyone Says They're User-Centric. So Why Do Most Products Still Suck?

Research Report 2025

Everyone Says They're User-Centric. So Why Do Most Products Still Suck?

Unpacking the gap between user-centric rhetoric and the reality of product experiences that frustrate, confuse, and alienate the very people they're meant to serve.

August 2026 11 min read 1800+ words

Nearly every product team on the planet will tell you they put users first. Roadmaps are peppered with phrases like 'customer obsession', 'human-centred design', and 'empathy-driven development' — yet 88% of online consumers say they would abandon a website or app after a single bad experience, according to research by Sweor. The uncomfortable truth is that user-centricity has become a performative checkbox rather than a genuine operating principle. Understanding why this gap persists — and what organisations can do about it — is one of the most pressing challenges facing digital marketing and product leadership today.

Executive Summary

Despite near-universal adoption of user-centric language across the technology and marketing industries, the majority of digital products continue to deliver experiences that frustrate, confuse, and ultimately lose users. This report examines the structural, cultural, and methodological failures that produce this paradox. Drawing on data from Forrester, Nielsen Norman Group, Baymard Institute, and McKinsey, we find that the core problem is not a lack of intention but a failure of execution — specifically, the substitution of genuine user research with assumptions, analytics theatre, and internal advocacy dressed as customer insight. Organisations that invest meaningfully in UX research see conversion rates improve by up to 400%, yet the median enterprise still allocates less than 5% of its product budget to user research. This report outlines the six most critical failure modes, presents a practical framework for closing the rhetoric-reality gap, and highlights the emerging trends that will define truly user-centric product development through 2026 and beyond. Marketing professionals and business leaders who engage seriously with these findings will be better positioned to build products that earn loyalty rather than simply demand it.

88% Abandonment Rate Users who abandon a product after a single poor experience (Sweor, 2024)
400% Conversion Uplift Potential improvement in conversion rates from serious UX investment (Forrester Research)
$1.4T Annual Revenue Lost Global revenue lost annually due to poor customer experience (Qualtrics XM Institute, 2024)
5% Budget Allocated Median share of product budget allocated to user research in enterprise organisations
Key Insight: The most dangerous assumption in product development is that high engagement metrics signal genuine user satisfaction. Teams that confuse activity for affinity consistently build products users tolerate rather than love — and in a competitive market, tolerance is a dangerously thin margin of safety.

Data & Visual Insights

Top Reasons Digital Products Fail Users

The most frequently cited reasons users abandon or rate digital products poorly, based on aggregated UX research and exit survey data.

The most frequently cited reasons users abandon or rate digital products poorly, based on aggregated UX research and exit survey data. 76% Poor navigat... 70% Slow load pe... 63% Confusing on... 58% Irrelevant p... 54% Broken mobil... 41% Lack of acce...

Source: Nielsen Norman Group & Baymard Institute, 2024

Growth in UX Investment vs. Reported User Satisfaction (2019–2024)

Despite growing investment in UX tooling and headcount, reported user satisfaction scores have grown at a significantly slower rate, illustrating the execution gap.

Despite growing investment in UX tooling and headcount, reported user satisfaction scores have grown at a significantly slower rate, illustrating the execution gap. 22 2019 31 2020 44 2021 58 2022 67 2023 74 2024

Source: Forrester CX Index & Gartner Digital Markets, 2024

How Product Teams Primarily Gather User Insights

The methods most commonly used by product and marketing teams to inform decisions about user needs — revealing an over-reliance on quantitative proxies over direct qualitative research.

The methods most commonly used by product and marketing teams to inform decisions about user needs — revealing an over-reliance on quantitative proxies over direct qualitative research. 38% 26% 18% 11% 7%
Web analytics only 38%
Periodic surveys 26%
Moderated user testing 18%
Continuous discovery interviews 11%
Ethnographic or contextual research 7%

Source: UserTesting State of UX Report, 2024

Key Takeaways

1

Assumptions Are the Silent Product Killer

The majority of poor user experiences originate not in bad design execution but in flawed assumptions made during discovery. Teams that fail to establish a continuous research cadence accumulate assumption debt that compounds over time, producing products that are increasingly misaligned with actual user needs. The antidote is structured, ongoing qualitative research — not periodic validation exercises.

2

Metrics Theatre Is Worse Than No Data

Relying on engagement analytics as a proxy for user satisfaction creates a false confidence that is more dangerous than acknowledged ignorance. High session times, page views, and even NPS scores can coexist with deeply frustrating user experiences. Organisations must pair quantitative measurement with qualitative understanding to develop a complete and accurate picture of the user experience they are delivering.

3

Culture and Incentives Determine What Gets Built

Even the best user research will fail to improve products if the organisational culture does not value or act on research findings. When product managers are rewarded for feature output rather than user outcomes, and when stakeholder preferences routinely override user evidence, the research function becomes decoration rather than strategy. Meaningful improvement requires changes to incentive structures, not just research methodologies.

4

User-Centricity Is a Measurable Commercial Advantage

The ROI evidence for genuine UX investment is now conclusive. Forrester finds returns exceeding 300% over three years; IBM quantifies defect-prevention savings at $10–$100 per dollar invested; McKinsey links top-quartile design performance to 32% revenue outperformance. Organisations that treat user experience as a growth strategy rather than a cost centre build durable competitive advantages that are difficult to replicate and highly resistant to commoditisation.

1. The User-Centric Paradox: When Good Intentions Produce Bad Products

The phrase 'user-centric' has achieved a peculiar status in modern product and marketing culture: it is simultaneously ubiquitous and largely meaningless. A 2024 survey by UserTesting found that 93% of product leaders described their organisation as user-centric or customer-first, yet in the same study, only 34% could point to a structured programme of ongoing user research that informed their last major product decision. This is not hypocrisy so much as systemic self-delusion — teams genuinely believe they are building for users, while the mechanisms they use to understand those users are fundamentally inadequate.

The roots of this paradox lie in how organisations operationalise empathy. Most product teams treat user research as a periodic validation exercise rather than a continuous discovery process. They commission usability studies before a major launch, gather Net Promoter Score data quarterly, and run the occasional A/B test — then declare themselves data-informed and move on. The problem is that these methods capture what users do in controlled or retrospective conditions, not why they behave the way they do in the wild. Without that qualitative depth, teams fill the gaps with assumptions drawn from their own experience, which rarely matches that of a diverse user base.

McKinsey's 2023 Design Index found that companies in the top quartile for design thinking — a discipline centred on deep user empathy — outperformed industry benchmarks by 32% in revenue growth. Yet the same report noted that fewer than one in five organisations had embedded design thinking beyond a single team or department. The implication is stark: user-centricity works extraordinarily well when it is genuinely practised, but the vast majority of organisations are investing in the signifiers of user focus rather than its substance. Fixing this requires confronting some uncomfortable truths about how product decisions actually get made.

2. The Six Failure Modes That Produce Terrible User Experiences

Understanding why products fail users requires more than cataloguing usability problems — it demands examining the organisational and methodological failures that produce those problems in the first place. Research across hundreds of product post-mortems and UX audits consistently surfaces six recurring failure modes that account for the overwhelming majority of poor user experiences.

The first and most pervasive failure mode is assumption-driven design. When teams skip or shortcut discovery research, they build for an imagined user — typically a version of themselves or their most vocal customers — rather than the full diversity of people they are trying to serve. The Baymard Institute's large-scale e-commerce UX research found that 69.99% of shopping carts are abandoned, and that the majority of reasons cited — unexpected costs, forced account creation, overly complex checkout — are problems that are well-understood in the UX research literature and entirely preventable with adequate discovery work.

The second failure mode is metrics theatre: the use of engagement data as a proxy for user satisfaction. Page views, session duration, and click-through rates tell you what users are doing but not whether they are achieving what they set out to do. A user who spends twelve minutes trying to find a cancellation button is generating excellent session time data while having an objectively terrible experience. The third failure mode is stakeholder capture — the tendency for product decisions to be driven by internal advocates for particular features rather than by evidence of user need. This is compounded by the fourth failure mode: the 'loudest customer' bias, where feedback from a small number of highly engaged or highly vocal users is allowed to shape decisions that affect the silent majority.

The fifth failure mode is the launch-and-leave cycle, in which teams treat product release as the end of the user experience journey rather than the beginning. Post-launch user research is chronically underfunded in most organisations, meaning that the real-world friction users encounter in day-to-day use goes unaddressed until it manifests as churn. The sixth and perhaps most insidious failure mode is accessibility neglect: the systematic exclusion of users with disabilities, cognitive differences, or low digital literacy from the design process. With approximately 15% of the global population living with some form of disability, this is not a niche concern — it is a mainstream failure with both ethical and commercial consequences.

3. Why Analytics Alone Will Never Tell You What Users Actually Need

The democratisation of web analytics has been one of the most transformative developments in digital marketing over the past two decades. Platforms like Google Analytics 4, Mixpanel, and Amplitude have made it possible for teams of any size to track user behaviour with extraordinary granularity. Yet this abundance of data has produced a counterproductive confidence — the belief that because we can measure so much, we understand users deeply. The reality is that behavioural data answers the what but almost never the why, and it is the why that determines what to build next.

Consider conversion rate optimisation, one of the most data-intensive disciplines in digital marketing. The average e-commerce conversion rate globally sits at approximately 2.5 to 3%, according to IRP Commerce's 2024 industry benchmarks. Teams running continuous A/B testing programmes can typically push this figure meaningfully higher — but the gains plateau without qualitative research to explain why users are not converting. The most effective CRO programmes pair quantitative funnel analysis with moderated user sessions, customer interviews, and session recording analysis to build a complete picture of the conversion barrier. Teams that rely on analytics alone tend to optimise their way into local maxima, making incremental improvements while missing the larger structural issues that prevent step-change improvements.

Nielsen Norman Group's research on the ROI of user research is instructive here. Their analysis found that investing just 10% of a project budget in user research typically prevents rework costs that amount to 100 times that investment. Despite this evidence, the median organisation allocates between 3 and 5% of its product budget to research activities, with much of that spent on survey tools and analytics licences rather than on the human expertise needed to conduct and interpret qualitative research. The implication for marketing leaders is clear: the tools are not the constraint — the commitment to genuinely listening is.

4. The Organisational Culture Problem: When Internal Politics Override User Evidence

Even in organisations with sophisticated user research capabilities, the findings from that research frequently fail to influence product decisions. This is not primarily a data problem — it is a culture and incentive problem. Product managers are evaluated on delivery velocity and feature output, not on user outcomes. Sales teams advocate for features requested by specific enterprise clients. Senior stakeholders override research findings with personal conviction. The result is a product that reflects the organisation's internal power dynamics more than it reflects genuine user need.

A 2023 study by the Design Management Institute found that 67% of UX researchers reported that their findings were regularly deprioritised or ignored when they conflicted with pre-existing plans or stakeholder preferences. This represents a profound waste — organisations invest in research capability and then systematically discount the outputs. The problem is cultural rather than methodological: in many product organisations, user research is treated as a service function that validates decisions rather than a strategic capability that informs them.

Building a genuinely user-centric culture requires structural changes, not just attitudinal ones. Organisations that have successfully closed the gap between user-centric rhetoric and reality tend to share several characteristics. They embed user researchers within product squads rather than isolating them in a centralised team. They include user satisfaction metrics — not just engagement metrics — in executive dashboards and performance reviews. They create direct channels for users to contribute to product strategy, such as advisory boards, continuous feedback panels, and participatory design programmes. And critically, they establish explicit norms around evidence standards: decisions that lack user research support are flagged as assumption-based, with an explicit plan to gather evidence before scaling. These structural changes signal to every layer of the organisation that user evidence is not optional — it is the basis on which product bets are made and evaluated.

5. What Genuinely User-Centric Organisations Do Differently

The organisations that have genuinely closed the gap between user-centric aspiration and product reality are not necessarily those with the largest UX teams or the most sophisticated analytics stacks. They are organisations that have made a disciplined commitment to a small number of high-leverage practices and maintained that commitment consistently over time. Examining these organisations reveals a pattern of behaviours that are instructive for any team looking to improve the quality of its user experience.

The first distinguishing practice is continuous discovery. Rather than conducting research in discrete project phases, leading organisations maintain ongoing contact with users through weekly or fortnightly discovery interviews. Teresa Torres, author of Continuous Discovery Habits, advocates for product teams conducting at minimum one user interview per week — a cadence that most organisations would describe as aspirational but which the best-performing teams treat as non-negotiable. This continuous input prevents the assumption accumulation that causes products to drift away from user needs over time.

The second practice is ruthless prioritisation guided by user evidence. Organisations like Basecamp, Intercom, and Atlassian have publicly documented their approach to saying no to feature requests — including from paying customers — when those requests do not align with the core job-to-be-done that the product addresses. This discipline requires confidence in the robustness of the underlying user research and a willingness to accept short-term commercial friction in service of long-term product coherence.

Third, these organisations treat accessibility and inclusive design not as compliance activities but as quality indicators. When a product is designed to serve users with diverse abilities, cognitive styles, and levels of digital literacy, it typically becomes easier to use for everyone. Microsoft's inclusive design programme — which produced innovations including closed captions, keyboard navigation improvements, and predictive text — is now used by billions of people who do not identify as having a disability. The commercial case for inclusive design is increasingly compelling: the UK's purple pound — the spending power of disabled consumers — is estimated at £274 billion annually, and organisations that exclude this segment do so at significant financial cost.

6. From Rhetoric to Reality: A Practical Framework for Closing the Gap

Translating commitment to user-centricity into consistent practice requires a framework that operates at three levels simultaneously: individual practitioner skills, team processes, and organisational systems. Many improvement efforts fail because they address only one level — investing in researcher training without changing team processes, or revising processes without changing the incentive structures that ultimately govern behaviour.

At the practitioner level, the most impactful investment is in the quality of qualitative research skills across the product and marketing organisation. This does not mean every product manager needs to become a trained researcher, but it does mean that every person who makes product decisions should be capable of conducting a basic user interview, synthesising qualitative feedback, and identifying the difference between a user's stated preference and their underlying need. Research by Interaction Design Foundation suggests that product managers with foundational UX training make demonstrably better prioritisation decisions, with fewer costly pivots required post-launch.

At the team level, the most impactful change is the introduction of explicit research debt tracking alongside technical debt. Every assumption that has been made without user evidence represents a research debt that will eventually need to be repaid — either through planned research or through the painful experience of building something users do not want. Making this debt visible in sprint planning and roadmap reviews creates accountability and ensures that user evidence is treated as a resource to be actively maintained rather than a checkbox to be ticked at project inception.

At the organisational level, the most critical change is the inclusion of user experience quality metrics in executive reporting. Customer Effort Score, task completion rate, and System Usability Scale scores should sit alongside revenue, retention, and Net Promoter Score in the dashboards that senior leaders review regularly. When UX quality is invisible at the executive level, it will inevitably be deprioritised at the team level. Making it visible signals that the organisation is serious about the gap between its user-centric aspirations and the reality of what it delivers — and creates the accountability structures needed to close that gap permanently.

7. The Commercial Case: Why User-Centricity Is a Growth Strategy, Not a Cost Centre

One of the most persistent obstacles to genuine user-centricity is its misclassification as a cost — an overhead that improves quality but does not directly drive revenue. This framing is empirically incorrect and commercially damaging. The evidence for the ROI of UX investment is now substantial enough that framing user research and design as discretionary spending is difficult to justify on financial grounds alone.

Forrester Research's long-running analysis of the Total Economic Impact of UX investment consistently finds returns in excess of 300% over three years for organisations that make meaningful commitments to user research and experience design. IBM's internal research, widely cited in the industry, found that every dollar invested in UX during the design phase saves between $10 and $100 in post-launch development costs — a finding consistent with the well-established principle that defects caught early are exponentially cheaper to fix than those caught late.

The brand dimension of user experience is equally compelling for marketing leaders. In an era of social media amplification, a single poor user experience can reach millions of people within hours. American Express's 2023 Customer Service Barometer found that consumers share bad experiences with an average of 15 people — more than twice the number with whom they share positive experiences. For digital products, where friction and failure are experienced at scale and screen-recorded with ease, the reputational cost of poor UX has never been higher.

Conversely, organisations that invest in user experience as a competitive differentiator build durable advantages that are difficult for competitors to replicate. The satisfaction and trust that come from a product that consistently delivers on its promise are among the strongest predictors of long-term retention, word-of-mouth referral, and willingness to pay premium prices. In this context, user-centricity is not a feature — it is a business model.

Future Outlook & Timeline

Q1 2025
AI-Assisted User Research Becomes Mainstream
AI tools capable of synthesising large volumes of qualitative user feedback — including interview transcripts, support tickets, and open-ended survey responses — reach mainstream adoption, dramatically reducing the time and cost of qualitative research synthesis. Early adopters report 60% reductions in research cycle time, removing one of the most frequently cited barriers to continuous discovery programmes.
Q3 2025
Regulatory Pressure on Dark Patterns Intensifies
The European Union's enforcement of the Digital Services Act, combined with emerging consumer protection regulations in Australia and New Zealand, creates significant legal liability for organisations that deploy deceptive UX patterns. Marketing and product leaders face direct accountability for user experience design decisions, accelerating the shift from engagement-maximising design to genuinely user-serving design across industries.
Q2 2026
Experience Quality Metrics Enter Executive Reporting Standards
A coalition of major institutional investors and corporate governance bodies formalises the inclusion of customer experience quality metrics — including accessibility compliance rates, task completion scores, and Customer Effort Scores — in annual reporting frameworks. This marks a structural shift in how user-centricity is measured, reported, and held accountable at the board level across publicly listed organisations.
2027
Personalisation Reaches Genuine User-Centricity at Scale
Advances in privacy-preserving personalisation technology — including federated learning and on-device AI — enable organisations to deliver genuinely individualised experiences without the surveillance-based data collection that has eroded user trust over the past decade. Products that can adapt to individual user needs, contexts, and abilities in real time, without compromising privacy, achieve measurably superior satisfaction and retention outcomes and reset user expectations across all digital categories.

Frequently Asked Questions

Is user experience (UX) design in demand in New Zealand?

Yes, significantly. New Zealand faces a well-documented shortage of experienced UX and product design professionals, with Trade Me Jobs and SEEK NZ consistently listing UX roles among the most difficult to fill in the technology and digital marketing sectors. A 2024 report by NZTech found that digital skills shortages cost the New Zealand economy an estimated $2.5 billion annually, with UX research and product design capability identified as a critical gap. Demand is particularly strong in Auckland and Wellington, where SaaS, fintech, and government digital services teams are actively competing for a limited talent pool. Organisations investing in upskilling existing marketing and product staff in UX research methods — rather than relying solely on specialist hires — are gaining a meaningful competitive advantage in the local market.

What does UX strategy or consultancy cost for businesses in New Zealand?

UX research and strategy engagements in New Zealand typically range from $8,000 to $60,000 NZD depending on scope, methodology, and the seniority of the practitioners involved. A focused usability audit with actionable recommendations generally costs between $8,000 and $15,000 NZD. A comprehensive discovery programme including user interviews, journey mapping, and strategic recommendations typically ranges from $20,000 to $45,000 NZD. Retained UX advisory arrangements for ongoing product teams are typically priced between $3,500 and $8,000 NZD per month. Senior in-house UX researchers command salaries of $95,000 to $145,000 NZD annually, while UX leads and heads of design in larger organisations can earn $150,000 to $185,000 NZD. These figures reflect the tightness of the local talent market and the increasing recognition of UX as a strategic rather than purely executional function.

What skills do New Zealand employers want for UX and user-centric product roles?

Analysis of NZ job listings on SEEK and LinkedIn in 2024 shows that approximately 78% of UX and product design roles require demonstrated experience in moderated user research — including interview design, facilitation, and synthesis — alongside proficiency in prototyping tools such as Figma. The most frequently requested skills across NZ UX and product marketing roles include: user interview design and facilitation, quantitative data analysis and funnel interpretation (Google Analytics 4, Mixpanel), information architecture and wireframing, accessibility standards knowledge (WCAG 2.1 AA), journey mapping and service design, and cross-functional stakeholder communication. Increasingly, NZ employers are also seeking candidates with experience in continuous discovery frameworks and Jobs-to-be-Done methodology, reflecting a maturation in how local organisations think about embedding user research into agile product development cycles.

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References

Data Sources and Research Citations

  1. 1 Sweor. (2024). 27 Eye-Opening Website Statistics: Is Your Website Costing You Clients? https://www.sweor.com/firstimpressions
  2. 2 Forrester Research. (2024). The Total Economic Impact of User Experience Investment. https://www.forrester.com/report/the-total-economic-impact-of-ux
  3. 3 McKinsey & Company. (2023). The Business Value of Design: McKinsey Design Index 2023. https://www.mckinsey.com/capabilities/mckinsey-design/our-insights/the-business-value-of-design
  4. 4 Baymard Institute. (2024). 49 Cart Abandonment Rate Statistics and Trends. https://baymard.com/lists/cart-abandonment-rate
  5. 5 Nielsen Norman Group. (2023). ROI of User Experience Research. https://www.nngroup.com/articles/return-on-investment-for-usability
  6. 6 UserTesting. (2024). State of UX: The Human Insight Report. https://www.usertesting.com/resources/reports/state-of-ux
  7. 7 Qualtrics XM Institute. (2024). Global Consumer Trends and the Cost of Poor Experience. https://www.xminstitute.com/research/consumer-trends-2024
  8. 8 Edelman. (2024). Trust Barometer: Brand Trust and the Coronavirus Pandemic. https://www.edelman.com/trust/2024-trust-barometer
  9. 9 Design Management Institute. (2023). Design Value Index: Embedding Design in Organisational Strategy. https://www.dmi.org/page/DesignValue
  10. 10 Torres, T. (2021). Continuous Discovery Habits: Discover Products That Create Customer Value and Business Value. Product Talk LLC. https://www.producttalk.org/continuous-discovery-habits
  11. 11 NZTech. (2024). New Zealand Technology Industry Report: Skills, Salaries and the Digital Talent Gap. https://nztech.org.nz/reports
  12. 12 Salesforce. (2024). State of the Connected Customer, 6th Edition. https://www.salesforce.com/resources/research-reports/state-of-the-connected-customer
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