CX Insights

Staffing biggest barrier to delivering top-tier experiences


It’s clear: even though U.S. workers are taking more accountability for delivering great experiences, U.S. workers feel that staffing is the biggest barrier to delivering “exceptional products and services” to customers, according to Gallup. This was common across all job levels, including leadership. Among industries, healthcare, public policy, retail, and education were more likely than average to cite staffing as a top barrier.

Bar chart highlighting key barriers to delivering exceptional customer outcomes. Top barrier: staffing (37%), followed by training (16%), knowledge/skills (16%), materials (9%), people (8%), standards (8%), and service quality (7%) in meeting customer expectations.

Notably, 23% of U.S. employees (23%) reported their organization is reducing its workforce, up from 8% in 2022. Among those reporting layoffs, nearly two-thirds said frontline workers who work directly with customers were most affected. Team members are noticing, because they’re picking up the extra work.

 

It’s an interesting discussion given the rise of AI and worker worries that they’ll be replaced, or have headcount stay flat as tech does more of the work. Yet, two weeks ago I reported on how HBR found AI is not reducing work, but instead changing and intensifying it. 

 

Automation and AI is still going to be a huge part of customer experience work - and all work - in the coming future. However, humans will always play a role. If you’re advocating for increased staffing, connect it back to the quality of service your brand delivers.

 

21% of retail loss preventable

The 2026 Total Retail Loss Benchmark Report found that retail loss from shrink, fraud, returns abuse and operational leakage totaled $796 billion in 2025. The report found that 21% of this retail loss was preventable, and returns abuse made up a much larger share than clear fraud. Employee theft also led to more loss than inventory errors, operational errors, and organized retail crime.

CX leaders: if you have not been investing in the flows around returns, it’s time to dedicate some attention to that to boost the bottom line.

 

The best airport in North America?

 

The biggest airports are not always the best. A survey from over 700,000 passengers revealed that one of the standouts is… Greenville-Spartanburg International Airport (GSP) in South Carolina. It took awards in five categories: sustained leadership in customer experience over time, most enjoyable airport, easiest airport journey, most dedicated staff, and cleanest.

 

Many airports are citing themselves as the best - and other airports won awards such as being for departures by passenger volume - but I think it’s more commendable to win five different categories that show a dedication to CX.

 

In a world of mega airports good at one thing, strive to be like the regional airport that is quietly crushing it on many different fronts.

 

Turning the mic to you 🎤

 

We’re cooking up a podcast and looking for guests who want to share their perspectives on customer experience.

You're reading this newsletter, so we know you keep a pulse on the industry!

Interested in participating? Let us know here.

 

AI Headlines

 

Booking Holdings has cut customer service costs by 10% per resolution using generative AI even as bookings increased by about 10%.

 

Customer service staffing levels remain steady even with AI, and the brands that have cut jobs have done so to move resources to invest in AI.


McKinsey: AI is the difference between brands seeing meaningful gains in customer experience, efficiency, and growth. The adoption gap via committed resources or funding is widening.

 

Bar chart showing expected call volume, handle time changes, and customer experience scores for leaders vs laggards. Leaders, better aligned with customer expectations, see greater improvement; laggards report declines across all measured areas.

AUI, the company behind Apollo-1, the world’s first neuro-symbolic artificial intelligence model, has acquired agentic customer service company Quack AI.

Prediction: 2026 is the year customers ditch search engines for generative AI tools.