What does the Future Hold for Retail CX?: Emerging Trends from HGS and Today’s CX Retail Leaders
In a recent roundtable hosted by the Customer Xperience Association (CXA) in partnership with HGS, an established global business process management company employing 20,000 staff across 34 customer experience centres, today’s retail leaders came together to explore the changing face of customer experience in retail.
Backed by fresh insights from ContactBabel, the UK’s leading contact centre research and analysis firm, the event spotlighted what matters most to today’s CX professionals. Drawing from data from 400 contact centres and 1,000 UK consumers, the conversation offered a multifaceted view into what’s driving and reshaping retail CX.
- Loyalty is More Important Than Ever
While loyalty has always been a cornerstone of successful customer experience strategies, the stakes have been raised. As customer journeys become more seamless with improved technology, expectations for service recovery have increased. When issues arise, fast, effective resolution, especially with human empathy, can make or break brand loyalty. As several leaders noted, the right human touchpoint can forge emotional bonds that last.
- Profitability Through AI-Driven Personalisation
AI is increasingly being used to support cross-selling and up-selling, creating new paths to profitability. From automating ecommerce backend tasks like tagging and stock code identification to streamlining post-interaction wrap-ups, AI is freeing up agent time. The result? More opportunities for human agents to delight customers and drive deeper engagement.
- From Rules-Based Bots to Agentic AI
Retailers are transitioning from legacy, rules-based bots to agentic AI,such as conversational generative AI, that can handle nuanced, context-rich interactions. Experts from HGS highlighted how these advanced solutions not only lower operational costs but also elevate the customer experience, making automation a CX enhancer rather than a cost-cutting compromise.
- De-Risking AI Implementation
Deploying AI for CX doesn’t have to be a high-risk strategy. With case studies from HGS’s global partner network, the roundtable showcased how organisations are achieving reduced average handling times (AHT) and improved customer loyalty. One compelling insight: outsourcing certain AI functions can offload risk and speed up implementation while maintaining high standards of service.
- Meeting the Expectations of Gen Z
According to ContactBabel’s latest data, Gen Z consumers expect hyper-personalisation, instant responses, and seamless service across channels. Interestingly, beyond the tech, what they value most is simple: politeness and friendliness from agents. Brands that want to earn Gen Z loyalty must blend technology with empathy.
- The Cost of Self-Serve Failures
Failed self-serve experiences are not only frustrating, they’re expensive. Research revealed that these failures often push customers to abandon brands. AI-powered CX solutions are helping
reduce call volumes and prevent these costly missteps by identifying and eliminating points of friction quickly and intelligently.
- The Rise of the Enabled ‘Super Agent’
AI is also transforming the role of customer service agents. With access to tools like sentiment analysis and integrated knowledge bases, agents are becoming “Super Agents”, equipped to deliver consistent, high-quality support across all channels. ContactBabel found that 23% of agents’ time is spent switching between systems. Unified interfaces, powered by AI, are dramatically improving efficiency and job satisfaction.
- From Insight to Foresight
AI isn’t just about reacting anymore, it’s about predicting. From anticipating seasonal spikes and Black Friday rushes to pre-empting inventory issues, predictive analytics are becoming central to delivering smooth, uninterrupted customer experiences. As one CX leader put it, “insight is fast being replaced with foresight.”
Looking Ahead
While the discussions highlighted some of the most urgent CX challenges in retail, many participants agreed that five years from now, the landscape will look radically different. AI will not only support operations, but it will also likely drive large-scale restructuring, redefine roles, and unlock new avenues for innovation.
One thing is clear: the future of retail CX is being built today, and those who embrace AI as a partner, not a replacement, will be the best positioned to lead.
