The retail customer experience (CX) landscape is undergoing a seismic shift driven by evolving consumer expectations, rapid digital transformation, and AI-led automation. As retailers navigate the complexities of a post-pandemic world, key trends have emerged that will define success for 2025 and beyond. This blog distills critical insights from industry research and explores additional elements reshaping the future of retail CX.

Retail CXM’s resilience in a dynamic market

While the broader outsourced CX market faces slowdowns in some sectors, retail remains a bright spot, poised for substantial growth. The global outsourced CXM market is projected to reach $355 billion by 2024, with retail and e-commerce driving a 12.5%-14.5% revenue surge[1]. This expansion is fueled by:

• Operational flexibility: Retailers require agile support to handle seasonal spikes and demand fluctuations
• Cost efficiency: AI-driven CX solutions reduce service costs while enhancing response quality
• Enhanced personalization: Customer data analytics enable hyper-personalized experiences that drive loyalty

AI and Hyper-personalization: The future of retail engagement

AI-powered personalization is no longer a luxury, it’s a necessity. McKinsey reports that companies excelling in personalization generate 40% more revenue than those that don’t[2]. Meanwhile, 80% of consumers prefer brands that offer tailored experiences[3]. Today, retailers are leveraging:

• Conversational AI for real-time support, reducing human agent reliance while improving response accuracy
• Generative AI to create individualized content, automate responses, and refine customer journeys
• Agentic AI to enable intelligent decision-making in real-time interactions, fostering deeper engagement

Omnichannel experiences: A non-negotiable requirement

The modern consumer expects a seamless experience across all touchpoints. Studies indicate that 73% of shoppers use multiple channels, and 67% are more likely to make a purchase when offered a seamless omnichannel experience[4]. Leading retailers embracing omnichannel strategies have reported:

• 34% digital sales growth (Target, North America)⁴
• 45% increase in digital sales (John Lewis, Europe)⁴
• 52% sales boost (Alibaba, Asia) from integrating online and offline experiences⁴

Moreover, 68% of retailers have implemented workforce training to enhance omnichannel engagement.⁴

The social commerce revolution

Social media is a primary influence in the retail space, with 95% of retail executives citing social experience management as crucial for future success. Additionally, 58% of consumers acknowledge that social media impacts their purchasing decisions[5]. Retailers are investing heavily in:

• AI-powered sentiment analysis to monitor brand perception in real time
• Automated social care to enhance response speed and accuracy
• Content moderation and community engagement to cultivate trust and loyalty

With 72% of companies outsourcing social experience management, the role of CXM providers is becoming even more vital.