Competition in the retail industry is fiercer than ever. A comprehensive approach to employee experience is therefore no longer optional—it’s necessary. Adopting new technologies like AI and implementing a strategic approach to improving employee engagement are a critical starting point for EX and CX success.
Did you know that companies with highly engaged employees outperform their competitors, generating 23% more profit than those with low levels of engagement? Engaged employees drive customer satisfaction, loyalty, and the overall experience, laying the foundation for an exceptional customer experience.
In 2025, retailers face significant challenges: fluctuating market conditions, inflation, employee turnover, supply chain disruptions, rising customer expectations, and intense competition. Many are responding by cutting costs, downsizing, and making operational changes while striving for efficiency. However, the balance between these changes and the employee experience (EX) is often overlooked.
Rethinking EX: A strategic lever for success in retail
EX goes beyond annual surveys on communication, management, and corporate culture. While these are valuable, it requires ongoing engagement, especially during change, to understand employee perspectives.
Engaging employees in this comprehensive EX approach builds trust and relationships, and gains valuable perspectives that improve customer interactions, streamline operations, and drive business results. In a time of constant change, focusing on EX isn’t just a nice-to-have; it’s a must for sustainable growth and success.
Empower Your Employees to Drive Better Customer Interactions
Have you ever walked into a store or café and immediately wanted to leave? Long lines, dirty tables, and stressed-out employees create a chaotic experience that drives you away. Attentive staff, on the other hand, make you want to stay.
Well-trained employees gain confidence. When their voice is heard by management, they feel included. And when they can make decisions that are in the best interest of the customer, they experience trust. Engaged employees are more motivated, more adaptable, and provide better, personalized, and higher-quality service. They create memorable experiences that strengthen brand loyalty, even in times of change.
Disengaged employees hurt sales, damage reputation, and increase costly turnover. Employee engagement offers a more sustainable solution. The most important finding: Positive employee experiences directly lead to positive customer experiences.
Use frontline employees as experts for strategic success
No one understands the customer experience better than front-line employees. They know their core customers on the ground, sense the impact of changes, and offer valuable insights into process improvements and technology needs.
Employee engagement before, during, and after major changes saves time, prevents disruptions to the customer experience, and refines strategies.
The key is making feedback accessible. Digital dashboards can seamlessly integrate feedback collection into workflows. Messages like “Share your ideas: Great ideas come from within” encourage participation and reveal hidden insights.
Retail is constantly evolving—promotions, product innovations, inventory issues, and technology improvements all impact the customer experience. It’s critical to inform and educate employees about these changes. Feedback from employees at all levels can provide insights and fill gaps that might be overlooked by management.
Employee expertise enables flexible responses, improves project plans, and aligns strategies with customer expectations—thus strengthening the overall customer interaction.
Turn employees into authentic brand ambassadors
Do you know a friend who constantly (and happily!) talks about their job? Maybe they consistently wear a company logo hoodie or share updates about their workplace on social media. That’s a true brand ambassador!
Happy, engaged, and confident employees who feel supported by their company develop into authentic brand ambassadors. This pride grows when companies invest in their employees—through competitive compensation and benefits, as well as collaboration, innovation, and inclusion. This, in turn, strengthens the brand’s reputation and market presence.
Use AI and Technology to Enhance the Employee and Customer Experience
Just like with the advent of the internet, many were skeptical, questioning its trustworthiness and potential. But it quickly became indispensable. AI is on a similar trajectory: It’s a powerful tool for efficiency and innovation that must be used responsibly.
While AI can automate repetitive tasks, it should never replace your brand’s voice or what makes your company unique. Instead, it should free up your employees to focus on high-impact, customer-centric activities that differentiate your brand.
When used responsibly, AI can revolutionize both EX and CX. Imagine being able to take the pulse of your customers and employees across hundreds of locations almost instantly. AI can identify trends across different demographic groups, helping employees adapt and improve their service.
The key is balance—AI should support human interaction, not replace it. During operational shifts, it can gather feedback and identify areas for improvement to ensure employees are prepared for new challenges.
Bringing everything together
Competition in retail is fiercer than ever. A comprehensive approach to EX is therefore no longer optional—it’s necessary. Adopting new technologies like AI and implementing a strategic approach to improving employee engagement are a critical starting point for EX and CX success.