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Customer experience will make or break brands in 2025 – Here’s why

Customer experience will make or break brands in 2025 – Here’s why
Customer experience will make or break brands in 2025 – Here’s why
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Customer experience (CX) hit an all-time low in 2024. In 2025, how brands choose to refine CX  will make or brand businesses.

But don’t despair. There is room for improvement. Let’s look at some of the ways to reverse the downward trend. 

Customer Experience: Getting it right

Whether your business focuses on brand loyalty, personalized consumer experiences, or both, the latest research addresses key pain points and how to solve them.

1. Customer loyalty programs

    Customer loyalty programs are no longer a ‘nice-to-have.’ It’s a necessity.

    This year (2024), 54% of chief marketing officers upped their budgets for loyalty and retention, according to PwC

    Why? Because loyal customers are worth the investment. They buy more, stick around longer, and act as brand ambassadors.

    Take inspiration from brands like Starbucks and Sephora. They have nailed loyalty with points systems and personalized perks.

    2. Hyper-personalization is a must

    Consumers want to feel seen, not spammed.

    A McKinsey study found that 71% of customers expect personalized experiences, but 76% get frustrated when brands miss the mark. 

    That’s a big problem—and also a big opportunity.

    Hyper-personalization goes beyond using someone’s name in an email. 

    It’s about tailoring everything—from product recommendations to marketing campaigns—based on real customer data.

    TIPS HERE: Personalization meets privacy: The new frontier of customer loyalty

    3. Voice interaction 

    Voice assistants aren’t just for setting timers anymore.

    According to Statista, voice commerce is expected to hit $50 billion within the next five years. 

    Meanwhile, 40% of US internet users already use voice assistants monthly. 

    So the goal is clear: E-commerce brands need to optimize their sites for voice search if they want to stay relevant.

    Imagine asking Siri to order groceries or Alexa to find the best holiday deals—it’s not just convenient; it’s the future.

    Virtual and augmented reality aren’t just for gamers anymore.

    Statista projects AR usage to skyrocket from 1.5 billion users in 2021 to 4.3 billion by 2025. 

    Take inspiration from retailers like IKEA who are already ahead of the curve, letting customers visualize furniture in their homes before buying.

    Brands that embrace VR and AR will create experiences that don’t just sell—they wow.

    HERE’S HOW: AR in online shopping: A game-changer for retail

    5. AI, ML 

    Artificial intelligence (AI) can improve customer experience. 

    A report by Fast Company shows that 73.5% of consumers are happy with AI chatbots, especially if it speeds up customer service on social channels.

    But, of course, a balance between AI and human output should still be maintained. 

    Final thoughts on customer experience

    Customer experience may be down in 2024, but it’s not completely out for 2025 just yet. 

    With loyalty programs, AR tech, and more, brands have plenty of tools to win back their customers. 

    The key? Listen to what customers want and act on it. Because when brands get CX right, everyone wins.

    About the author

    Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.

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