For marketers looking to secure budget for Customer Experience (CX) transformation, here’s one statistic that will turn skeptics into believers.
For decades, businesses were valued based on tangible assets like factories, inventory, and real estate. But today, those assets account for just 10% of the value of S&P 500 companies. The remaining 90%? It’s all intangible.
Brand, reputation, data and proprietary software have become the primary drivers of corporate worth. This monumental shift highlights why investing in CX isn’t just important; it’s essential for enhancing intangible assets and boosting overall company value.
As George Smith, Regional Managing Director EMEA at Horizontal Digital, explains in an episode of in4:
"Every accountant looks at a balance sheet and sees two things: tangible and intangible assets. The shocking reality is that in just one generation, we’ve flipped from 84% tangible value to 90% intangible. That means if your brand, data, and customer experience aren’t strong, neither is your business."
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Why CX is crucial for the growth of intangible assets
To understand why CX is essential for boosting intangible assets, let's explore how it directly contributes to the growth of brand value, data insights, and digital assets.
1. Brand value
Strong CX builds trust and loyalty, which strengthens brand equity. When customers associate a brand with seamless service, personalization, and reliability, they’re willing to pay more, stay longer, and recommend the company—all of which increase the brand’s overall market value.
2. Data & customer insights
Modern businesses thrive on data, and CX is the engine that generates it. Every customer interaction – whether through a website, app, or service call – creates valuable insights that help businesses personalize experiences, optimize operations, and drive sales.
3. Software & digital assets
From AI-powered chatbots to self-service portals, digital experiences shape customer perceptions and impact business valuation. Investing in frictionless digital CX leads to higher engagement, better retention, and a competitive edge.
"When nine-tenths of a company’s value comes from things you can’t touch, like brand, data, and digital experiences, it’s clear that CX isn’t just a ‘nice-to-have.’ It’s the foundation of business success," says Smith.
Growing recognition of CX’s value in the Middle East
The rise of CX isn’t just a Western trend – it’s unfolding across the Middle East as well as organizations recognize that exceptional CX is essential for driving customer loyalty, brand differentiation, and long-term growth.
A New Metrics study on CX trends in the Middle East finds reveals:
• $500 million was invested in CX technologies in the GCC in 2024.
• AI-driven CX is expected to grow by 35% in 2025.
• Organizations with CX-focused leadership see 30% higher customer satisfaction.
• Companies that embed CX into their culture outperform competitors by 2x when it comes to customer retention.
What this means for business leaders
Finance teams often ask, “What’s the ROI of customer experience?” The answer is clear: without CX investment, companies risk losing their most valuable assets –customer trust and brand equity.
"When your finance team understands that intangible assets – driven by customer experience – are now 90% of the equation, suddenly that CX budget isn’t a cost. It’s a growth strategy," says Smith.
The bottom line
The companies leading the Middle East’s digital economy – whether in finance, retail, or hospitality – aren’t just investing in technology. They’re investing in customer trust, loyalty, and seamless experiences.
So, the next time you’re pitching CX transformation to finance, don’t just say it’s important – show them the numbers.
