Information Technology

Navigating CX in the Retail Industry 2025 to 2027 – Customer Perspectives

Leveraging Innovation to Improve CX and EX is a Top Priority


RELEASE DATE
20-Nov-2025
REGION
Global
DELIVERABLE TYPE
Customer Research

RESEARCH CODE
KBE4-01-00-00-00
SKU
IT_2025_34112
Yes
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Navigating CX in the Retail Industry 2025 to 2027 – Customer Perspectives
Published on: 20-Nov-2025 | SKU: IT_2025_34112

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The last four years have been a roller coaster for the retail industry. Dominant themes that have both rankled and engendered creativity include the effects of the COVID-19 pandemic, the continued movement to the cloud, the maturation of next-level AI technology, and dramatic geopolitical upheaval. Each component has presented both significant challenges and opportunities.

The contact center industry has been leveraging AI for years across all segments. This has greatly accelerated since 2022, first with conversational AI, then generative AI (GenAI), and now agentic AI. AI is being used extensively in retail customer care, encompassing:
-Onboarding and training
-Performance management
-Forecasting & scheduling, agent assistance
-Transcription
-Language translation
-Process automation
-Self-service
-Analytics

The use of AI is essential in retail, with variations based on specific use cases. AI is primarily used for generating content. In contrast, the primary purpose of agentic AI is reasoning, not content creation. Agentic AI results are driven by achieving goals. It can carry out a complex series of activities, including reasoning to create its own workflows and evolve based on feedback. With this subtle difference, solution providers and retailers are learning when to apply which type to further operational and CX goals.

The primary goals of this study are to determine implementation plans of interaction channels, applications, and solutions in the contact center environment in the retail industry and to understand purchase trends. It also investigates the factors that influence product selection.

Decision-makers and purchase decision influencers of retail contact centers (total n=166) were surveyed across business functions, including CXOs, managing directors, owners, senior management, middle management, and others.

Countries include Australia/New Zealand, Brazil, Germany, France, India, Mexico, the Philippines, the UAE, Israel, the U.K./Ireland, and the U.S.

Field work: January to February 2025
Respondents: Decision makers from the 106 Retail organizations
Study period: 2025 to 2027

Author: Alpa Shah

An Integrated Approach Provides a 360-Degree Perspective

Research Objectives and Methodology of Customer Survey

The State of Retail

Global Consumer Trends Disrupting The Retail Industry

The State of Retail Customer Care: 2024–2029

The State of Retail Customer Care – The Prominence of AI

Tariff-Induced Macroeconomic Risks and Growth Opportunities

Retail Decision-maker Priorities

Voice Call and Chat with a Live Agent for Communication are a Popular Choice Among Retail

Voice Reigns and Agents Require Coaching

Retail Organizations Plan to Upgrade AI Voice and Chat Agents in the Next Two Years

Enhancing CX is a Top Priority for Retail Organizations

Delivering Customer Service Proactively is a Top CX Priority

Top Critical Decision-Making Factors When Selecting a CX Solution Provider

Customers Demand Hyper-personalization to Feel Looked After

All Investments Across the Contact Center Solution Suite

Key Areas Improved by Generative AI Technology

AI Virtual Agents Need Some Tweaking

Omnichannel Customer Journey Capabilities Lag Far Behind Customer Expectations

Key Findings

Growth Opportunities Fuel the Growth Pipeline Engine™

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

Benefits and Impacts of Growth Opportunities

Next Steps

List of Exhibits

Legal Disclaimer


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