CX Insights
Tariffs threaten brand loyalty for 40% of shoppers
A new study found that consumers are more loyal to their wallets than brands. 2 in 5 consumers will shop for the best deals even if it means changing up the retailers or brands. Here are some key findings:
- Baby boomers are to be the most price sensitive generation
- About one-third of all consumers are “actively deal-hunting”
- 13% have started shopping with other retailers over concerns about tariffs and high prices
Externally, we’ve already seen brands start to respond with tariff sales, notifications that prices may increase, and concern about supply chain logistics. It’s no surprise that consumers are responding in kind.
CX leaders: it’s time to dig into what your consumers want from your brand and be creative about how you can meet those needs and balance profitability. Loyalty can be a growth strategy - if you do it right. You don’t need perfect data to get started; segmentation is a great place to start.
Check out expert advice on consumer loyalty from Rachel Tyers of Okendo and Tara Paton of Huemanize.
Omnichannel is Gen Z’s expectation, not a bonus
Gen Z consumers want both the tactile experience of in-store shopping and the convenience of digital tools. According to FMI and NielsenIQ, this generation increasingly plans purchases via apps and expects grocers to bridge the gap with seamless, intuitive digital-to-physical journeys.
Across all age groups, in-store use of retailer apps, shopping lists, coupon codes, and price comparisons increased year over year.
From grocery list-building tools to personalized promotions and authentic brand interactions, retailers that master omnichannel experiences will earn the loyalty of the most connected—and soon, most powerful—shopping generation.
Is retail customer service dead in Australia?
A shopper based in Melbourne shared a TikTok video that upon entering three stores, she went unacknowledged. It sparked debate with commenters weighing in.
Some customers appreciate not being approached while shopping. Some customer service agents share that caring isn’t part of the job, and feel that customers should speak up when they need help. Either way - customer service is strained, and both agents and (some) customers are feeling it.
CX leaders: if quality of service and a customer’s experience is a valued part of your brand, make sure your staff can deliver. The winning combination? Proper staffing and support with tools to facilitate the job.
CX Quotation of the Week
“Don’t buy AI for AI’s sake. Buy it to solve a specific business problem. Focus on use cases—delighting customers, improving delivery, enhancing support. Start with what your business needs to do, then evaluate which tools help you do that better.”
-Hamish Nairn, Partner at Bain & Company
Check out Hamish’s CX Summit keynote if you missed it ->
AI Headlines
- Half of Airbnb users are using its bot for customer service and it has driven a 15% reduction in customers needing to talk to human agents: Airbnb is quietly rolling out an AI customer service bot in the US
- AI coming to a fast food restaurant near you soon: Wendy’s to deploy drive-thru AI to over 500 restaurants this year
- Ramping employees faster and delivering accurate stock info to retail associates: Lowe’s new AI tool to boost customer service and staff training
- Another AI customer service startup: Parloa Raises $120M Series C to Reinvent Customer Service with Agentic AI
- How AI is helping high-volume call centers: Utilities Call on Oracle AI to Transform Customer Service
