CX Insights
Some shoppers stock up in advance of tariffs
Recent announcement of tariffs in the U.S. has already caused a change in consumer behavior. Shoppers are swarming Apple stores to get their hands on high priced tech devices before tariffs set in and potentially cause prices to spike. Others are stockpiling basic household goods, though some are holding back because of memories of empty shelves during the pandemic.
Yesterday, planned tariffs changed again with a pause on most - but for organizations and retailers with reliance on imported goods from China, the situation is not yet resolved.
American Airlines cuts service staffing
American Airlines is scaling back in-person customer service, reducing gate agent staffing for under-capacity domestic flights and cutting service center shifts at Chicago O'Hare. This follows January layoffs of over 650 customer support staff and the formation of a leaner "customer success" team. The changes come amid declining travel demand and a softer domestic leisure market.
As airlines turn to tech and tighter staffing, customer service leaders must prioritize efficient, tech-enabled support without sacrificing traveler trust during high-stress moments.
Surprise delays are more frustrating than long waits
New research shows that surprise delays frustrate customers more than long waits—and damage brand loyalty more deeply. The mismatch between what customers expect and what they actually experience, known as the “experience gap,” is a top reason consumers switch brands or leave negative reviews. While executives often underestimate this, customer experience outranks even price as a loyalty driver.
Your frontline CX employees build valuable institutional knowledge. Keeping them around pays dividends with reduced turnover costs and better training between team members.
Prioritizing employee retention doesn’t just save costs—it drives better customer experiences and boosts profitability.
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AI Insights
Benioff says AI is his “new co-CEO”
Salesforce CEO Marc Benioff says AI is already reshaping his workforce, reducing customer support headcount while expanding roles in customer success. On a podcast, he called AI his “new co-CEO,” revealing Salesforce now resolves 85% of queries with its Agentforce platform.
Though some brands are using AI to augment agents, many are using it to cut staff - or will, as the World Economic Forum estimates that 41% of companies plan to reduce their workforce by 2030 because of AI. Either way, customer service organizations are using AI to increase productivity and in turn, margins. Customer service leaders must be protective and rethink how to balance automation with human value in a way that aligns with their brand.
98% of contact centers using AI
The 2025 State of the Contact Center Report found that nearly all contact centers are using
AI, and 61% are using it to have difficult conversations. That tracks with past stories we’ve covered in this newsletter, where customers and agents alike appreciate having AI to smooth out communication.
Golden Nuggets
Is anyone there? Why patience is wearing thin as customer service becomes more automated
Shopify CEO says staffers need to prove jobs can’t be done by AI before asking for more headcount
Spirit Airlines CEO steps down
