{"id":69136,"date":"2025-04-02T10:40:02","date_gmt":"2025-04-02T09:40:02","guid":{"rendered":"https:\/\/www.cxtoday.com\/?p=69136"},"modified":"2025-10-19T09:59:54","modified_gmt":"2025-10-19T08:59:54","slug":"the-retail-contact-center-4-trends-for-2025-five9","status":"publish","type":"post","link":"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/","title":{"rendered":"The Retail Contact Center: 4 Trends for 2025"},"content":{"rendered":"

\u201cYour brand is not what you sell; it’s the experience you deliver.\u201d<\/span>\u00a0<\/span><\/p>\n

That\u2019s a frequently cited quote from Tony Hsieh, the former CEO of Zappos.\u00a0<\/span>\u00a0<\/span><\/p>\n

Zappos is an online clothing retailer, and \u2013 in that sector \u2013 this statement shines true.\u00a0<\/span>\u00a0<\/span><\/p>\n

After all, retailers sell commodities. Therefore, CX is the chief brand differentiator.\u00a0<\/span>\u00a0<\/span><\/p>\n

Given this, retail contact centers can play a significant role in making or breaking customer loyalty.\u00a0<\/span>\u00a0<\/span><\/p>\n

Yet, retailers face unique challenges and have different priorities. As such, new trends are rising across the sector.\u00a0<\/span>\u00a0<\/span><\/p>\n

Here are four excellent examples for the retail contact center to keep top of mind.<\/span><\/p>\n

1. Competitor Analytics Enables Differentiation<\/h2>\n

Compared to other industries, retailers place significant emphasis on understanding and outperforming the competition.<\/span>\u00a0<\/span><\/p>\n

Indeed, according to ContactBabel research, managing competition and increasing sales are the two top priorities for retail contact centers in 2025.\u00a0<\/span>\u00a0<\/span><\/p>\n

On a practical level, tackling competition involves gathering competitive intelligence from multiple sources, according to <\/span>Steve Morrell, MD of ContactBabel<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Nowadays, that involves funneling data from multiple sources\u2014including customer conversations, third-party review sites, and social media platforms like Reddit, WhatsApp, and X. Morrell added: \u202f\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cAI-enabled analytics can help identify competitive mentions by listening for company names, product names, sentiment analysis, pricing comparisons, and product reviews.\u201d<\/span><\/p><\/blockquote>\n

By consolidating these insights, AI can support agents in real time, offering prompts, proactive talking points, and even rebuttals to help them better position the brand during customer conversations.<\/span>\u00a0<\/span><\/p>\n

Additionally, businesses can explore dynamic pricing strategies to help agents make informed pricing decisions without compromising profitability.<\/span>\u00a0<\/span><\/p>\n

\u201cI like to think of it as elevating the agent\u2019s role to that of a personal shopper,\u201d observed <\/span>Jason Griffin, Principal Solution Consultant at Five9<\/a><\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

\u201cBy leveraging additional customer insights into buying trends, communication preferences, and past interactions, agents can personalize experiences and build relationships. That\u2019s how you differentiate yourself from competitors.\u201d<\/span>\u00a0<\/span><\/p>\n

Of course, every CX function collects customer data, but the key is to use it effectively. The Five9 Data Lake enables seamless data integration through an open API connectivity layer.<\/span>\u00a0<\/span><\/p>\n

Ultimately, that allows businesses to consolidate data from various sources, extract relevant insights, and present them to agents in real time.<\/span><\/p>\n

2. Younger Customers Require More Careful Management<\/h2>\n

Younger customers (ages 16-24) are four times more likely than those aged 65+ to switch retailers due to a poor customer experience, as per ContactBabel.<\/span>\u00a0<\/span><\/p>\n

That challenge is particularly acute in this sector, as retailers already struggle with customer loyalty due to the commoditized nature of their products.<\/span>\u00a0<\/span><\/p>\n

Morrell engaged with many younger consumers to uncover a potential remedy. He found that they most valued long service hours and friendly agents.\u00a0<\/span>\u00a0<\/span><\/p>\n

On the latter, the analyst was shocked to find that this was more important to younger customers than first contact resolution (FCR) and short wait times.<\/span>\u00a0<\/span><\/p>\n

He hypothesized: \u201cYounger customers are less experienced in calling businesses and often feel stressed about doing so. When they do call, it\u2019s usually a last resort, and they need reassurance.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

“When a retailer can identify a young caller, agents should be especially patient, empathetic, and supportive. These moments of truth can be an opportunity to build long-term loyalty.”<\/span><\/p><\/blockquote>\n

Data is again a critical factor here. If agents can access customer history and preferences, they can tailor interactions accordingly.<\/span>\u00a0<\/span><\/p>\n

For example, if a customer rarely calls but suddenly does, that\u2019s a red flag. It signals a serious issue.\u00a0<\/span>\u00a0<\/span><\/p>\n

Businesses can prioritize such calls with the right data, ensuring a faster response time and a more personalized approach.<\/span>\u00a0<\/span><\/p>\n

Griffin also reflected on Morrell\u2019s remark that younger customers are typically more hesitant to call businesses. \u201cIt highlights the importance of offering multiple communication channels,\u201d he noted.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cWhile voice remains dominant, its prominence is waning among younger generations who prefer WhatsApp or live chat.<\/span>\u00a0<\/span><\/p>\n

\u201cHaving a flexible platform that supports multiple communication channels is key,\u201d concluded Griffin.\u00a0\u00a0 \u201cBusinesses must adapt to customer preferences by providing seamless omnichannel experiences.\u201d\u00a0<\/span><\/p>\n

3. Slim Service Operations Are In Vogue<\/h2>\n

Profitability is a core challenge in retail, where companies typically operate on tight margins.\u00a0<\/span>\u00a0<\/span><\/p>\n

For perspective, the retail sector pays only 94 percent of the average contact center wage. The only vertical paying less is outsourcing.<\/span>\u00a0<\/span><\/p>\n

With these lower wages, adding<\/span> headcount is often tricky. It can also cut margins even finer. So, retailers are instead exploring how to increase their profitability per contact.\u00a0<\/span>\u00a0<\/span><\/p>\n

The answer? Either generate more sales per call or reduce call duration.\u00a0<\/span>\u00a0<\/span><\/p>\n

As such, contact center leaders must consider how they can remove non-sales-related elements from calls, as per Morrell. He said:<\/span>\u00a0<\/span><\/p>\n

\u201cAuthentication, for instance, is a huge time sink. 70 percent of retail calls require caller authentication, which takes an average of 36 seconds. That\u2019s 10 percent of the call spent just verifying identity. If we can use AI agents for authentication and routing, we eliminate a major cost driver.\u201d<\/span>\u00a0<\/span><\/p><\/blockquote>\n

\u201cAnother possibility is streamlining the agent experience by pulling relevant information into a unified agent desktop, auto-filling forms, and generating post-call notes. “Post-call work alone takes up 15 percent of the time,” added Morrell.\u00a0<\/span>\u00a0<\/span><\/p>\n

On the sales side, AI-powered analytics can again help agents with cross-selling, upselling, handling objections, and suggesting product comparisons in real time.<\/span>\u00a0<\/span><\/p>\n

Yet, also consider analytics applications beyond agent assist, like the Five9 AI Insights solution.<\/span> It <\/span>listens to calls, analyzes intents, and maps them against operational data\u2014hold time, queue time, wrap-up time, and total handle time.<\/span>\u00a0<\/span><\/p>\n

\u00a0\u201cThis helps pinpoint problem areas,\u201d said Griffin. \u201cFor example, if agents frequently put customers on hold, we can improve guidance. If queue times are high, we look at virtual assistants to handle basic queries like authentication or order updates.\u201d<\/span>\u00a0<\/span><\/p>\n

By focusing on these critical improvement areas, retail contact centers can reduce inefficiencies while increasing revenue opportunities.<\/span><\/p>\n

4. Retailers Rethink Digital Service Experiences<\/h2>\n

Retailers have already shifted many queries away from voice, with \u2013 on average \u2013 only half of their contact center conversations happening on the channel.\u00a0<\/span>\u00a0<\/span><\/p>\n

However, 28 percent of their calls still come from customers who tried and failed to resolve their issue via self-service, according to ContactBabel\u2019s research. That indicates widespread issues within the digital service experience.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Morrell points the finger at previous-generation virtual agents. \u201cMany current chatbots are rule-based and lack sophistication,\u201d he said. \u201cWe\u2019ve seen a slowdown in automation adoption because these systems have hit their limits. More advanced AI-driven automation is needed.\u201d<\/span>\u00a0<\/span><\/p>\n

“That said, automation has already made a difference. Since 2018, due to automation, live chat costs have dropped to 55 percent of a live call. But, without a step-change in chatbot sophistication and integration with backend systems, further cost reductions will be limited.”<\/span><\/p><\/blockquote>\n

Generative AI (GenAI) has enabled that step change. Augmented with GenAI, chatbots scour knowledge and data sources to independently answer customer queries without prior training.\u00a0<\/span>\u00a0<\/span><\/p>\n

Moreover, they gauge changing intents to guide customers through a conversation and \u2013 when there is insufficient knowledge \u2013 escalate the interaction.<\/span>\u00a0<\/span><\/p>\n

Now, agentic AI promises to take the technology further, connecting with backend processes to automate much more complex queries.\u00a0<\/span>\u00a0<\/span><\/p>\n

Additionally, it adds reasoning. So, the customer only receives a response if the solution is a specific percentage sure it knows the answer.\u00a0<\/span>\u00a0<\/span><\/p>\n

With solutions like <\/span>the Five9 AI Agent<\/span><\/a>, contact centers can toggle that percentage across intents to maximize the efficiency of their deployment and ensure brand safety.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cMany chatbots are just glorified \u201cpress one, press two\u201d systems. To be effective, they need to be truly conversational and contextual,\u201d summarized Griffin. \u201cThat\u2019s what we\u2019re focusing on with the Five9 AI Agent.\u201d<\/span>\u00a0<\/span><\/p>\n

More Insight Into the Retail Contact Center<\/h2>\n

Understanding these trends is one thing. Building the retail contact center of tomorrow is another.<\/span>\u00a0<\/span><\/p>\n

Thankfully, Morrell and Griffin took part in a recent webinar, getting more into the weeds and unfurling how retailers can elevate their customer service experiences.\u00a0<\/span>\u00a0<\/span><\/p>\n

In doing so, they share practical advice to leverage data-driven insights, personalize interactions at scale, and optimize the customer journey.\u00a0<\/span>\u00a0<\/span><\/p>\n

Catch up on the webinar here: <\/span>Elevating Retail CX with AI: Driving Personalization & Loyalty Across the Customer Journey<\/span><\/a>\u00a0<\/span><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cYour brand is not what you sell; it’s the experience you deliver.\u201d\u00a0 That\u2019s a frequently cited quote from Tony Hsieh, the former CEO of Zappos.\u00a0\u00a0 Zappos is an online clothing retailer, and \u2013 in that sector \u2013 this statement shines true.\u00a0\u00a0 After all, retailers sell commodities. Therefore, CX is the chief brand differentiator.\u00a0\u00a0 Given this, […]<\/p>\n","protected":false},"author":4063,"featured_media":69146,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[11850,61092,62064],"class_list":["post-69136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contact-center","category-customer-engagement-platforms","category-service-management-connectivity","tag-agent-assist","tag-ai-agents","tag-retail","brands_to_track-five9","editorial_type-interview","intent-discovery","target_audience-dual"],"acf":[],"yoast_head":"\nThe Retail Contact Center: 4 Trends for 2025 - CX Today<\/title>\n<meta name=\"description\" content=\"CX Today covers Contact Center & Omnichannel\u200b news including Agent Assist, AI Agents, Retail and more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Retail Contact Center: 4 Trends for 2025\" \/>\n<meta property=\"og:description\" content=\"CX Today covers Contact Center & Omnichannel\u200b news including Agent Assist, AI Agents, Retail and more.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/\" \/>\n<meta property=\"og:site_name\" content=\"CX Today\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CXTodayNews\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-04-02T09:40:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-19T08:59:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.cxtoday.com\/wp-content\/uploads\/2025\/04\/The-Retail-Contact-Center-4-Trends-for-2025-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"850\" \/>\n\t<meta property=\"og:image:height\" content=\"425\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Charlie Mitchell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cxtodaynews\" \/>\n<meta name=\"twitter:site\" content=\"@cxtodaynews\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Charlie Mitchell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/\"},\"author\":{\"name\":\"Charlie Mitchell\",\"@id\":\"https:\/\/www.cxtoday.com\/#\/schema\/person\/4deb7a9ecd0b93d7461a492a1b54b8b9\"},\"headline\":\"The Retail Contact Center: 4 Trends for 2025\",\"datePublished\":\"2025-04-02T09:40:02+00:00\",\"dateModified\":\"2025-10-19T08:59:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/\"},\"wordCount\":1324,\"publisher\":{\"@id\":\"https:\/\/www.cxtoday.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.cxtoday.com\/wp-content\/uploads\/2025\/04\/The-Retail-Contact-Center-4-Trends-for-2025-2.jpg\",\"keywords\":[\"Agent Assist\",\"AI Agents\",\"Retail\"],\"articleSection\":[\"Contact Center & Omnichannel\u200b\",\"Customer Engagement Platforms\",\"Service Management & Connectivity\"],\"inLanguage\":\"en-GB\",\"copyrightYear\":\"2025\",\"copyrightHolder\":{\"@id\":\"https:\/\/www.cxtoday.com\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/\",\"url\":\"https:\/\/www.cxtoday.com\/contact-center\/the-retail-contact-center-4-trends-for-2025-five9\/\",\"name\":\"The Retail Contact Center: 4 Trends for 2025 - 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