From Data Disconnects to Dynamic Experiences: How Consumer & Retail Leaders Are Reimagining CX Through Tech Investments (CX Tech ROI)
In today’s hyper-competitive market, customer experience (CX) plays a defining role in shaping brand loyalty. Consumers expect seamless, personalized, and responsive interactions across all touchpoints. Consequently, companies in the Consumer and Retail (C&R) sector are investing aggressively in technology to meet these evolving expectations.
According to the latest “KPMG Global Tech Report: Consumer and Retail Insights,” technology leaders in C&R are making bold moves. The report draws insights from 490 technology leaders across 26 countries, including India. The findings shed light on how CX transformation is now central to digital investments.
Proven ROI Is Driving Tech Priorities
First and foremost, 74% of respondents confirm that their technology investment priorities reflect proven returns. This data point signals a mature approach to innovation. Companies are no longer experimenting blindly. Instead, they are aligning tech initiatives with tangible business outcomes. Clearly, CX is one of those outcomes.
CX-enhancing technologies such as AI, data analytics, and automation are showing visible benefits. These tools are helping brands personalize products, streamline services, and predict consumer behavior with high accuracy. As a result, customer satisfaction, retention, and loyalty are improving.
Artificial Intelligence: A CX Catalyst
Artificial Intelligence (AI) has emerged as a key differentiator. Around 73% of C&R companies have already secured business value from AI use cases. Moreover, organizations are now shifting focus from experimentation to acceleration. They aim to scale their successful pilots into enterprise-wide CX strategies.
AI powers personalization engines, automates customer support, and improves inventory accuracy. It also enhances product recommendations, thereby creating a more relevant shopping experience. Additionally, AI enables chatbots to resolve issues quickly, leading to reduced wait times and higher customer delight.
The Voice of the Customer: Still a Missed Opportunity
Interestingly, 60% of surveyed organizations collect customer feedback regularly. However, many fail to use these insights effectively. Data silos and disconnected contact channels hinder feedback integration. As a result, valuable customer inputs often remain unused.
This disconnect represents a major gap in the CX loop. Gathering feedback is only the first step. Without proper synthesis and application, it becomes noise rather than guidance. Therefore, C&R companies must build unified platforms that consolidate insights across departments.
Data Maturity Is on the Rise
Despite the feedback gap, there is good news on the data front. The number of companies securing valuable insights from data has grown significantly. Last year, only 38% of companies effectively used their data. Today, that number has risen to 52%.
This progress reflects growing investments in data infrastructure, analytics capabilities, and governance frameworks. It also shows that C&R leaders now understand data’s critical role in shaping customer journeys. When leveraged correctly, data reveals patterns, preferences, and pain points. This enables real-time improvements in service delivery.
Collaboration Breeds Better CX Outcomes
Effective CX requires a unified vision. Fortunately, 46% of businesses prefer open collaboration when approaching technology innovation. These companies set up AI centers of excellence and cross-functional task forces. Such structures allow for the seamless exchange of ideas and best practices.
When marketers, engineers, and operations teams collaborate, they create holistic solutions. These are better aligned with both brand goals and customer needs. Therefore, collaboration is not just good practice; it is a CX imperative.
Scaling AI Through Centralized Governance
Many C&R firms plan to centralize their AI experimentation. Around 39% of respondents aim to consolidate their AI efforts after gathering enough ideas from their teams. A centralized approach ensures consistency, accountability, and faster scaling.
Importantly, it also brings CX into sharper focus. With centralized AI governance, businesses can track CX metrics across touchpoints. They can also evaluate performance and course-correct based on real-time data. Thus, scaling AI goes hand-in-hand with elevating customer experiences.
In-Store Innovation: Enhancing Human Interaction
Digital innovation is not limited to e-commerce. It is transforming in-store experiences as well. C&R leaders are using data to optimize headcount models, forecast peak hours, and deploy predictive analysis. This improves staffing and enhances service quality during high-traffic periods.
Furthermore, the in-store workforce is being trained to use digital tools. This blend of human empathy and digital precision enriches the overall experience. Customers enjoy faster service, better assistance, and personalized interactions. In short, physical retail is becoming more intelligent and responsive.
Automation and Gen AI: Beyond the Basics
Automation and Generative AI are no longer buzzwords. They are becoming central to complex decision-making. Leaders are now moving past low-hanging use cases. Instead, they focus on forecasting, scenario planning, and workforce optimization.
These advanced applications enable quicker decision-making and agile responses to market shifts. For instance, predictive analytics can optimize warehouse inventory. Similarly, generative models can simulate customer journeys and suggest enhancements. This pushes CX from reactive to proactive.
Governance: A Pillar of Responsible Innovation
With great power comes great responsibility. As AI adoption grows, so does the need for robust governance. Companies must safeguard customer trust. They must protect data, ensure transparency, and uphold ethical standards.
Creating governance structures is not optional. It is essential. Without it, even the best CX strategies can backfire. Customers today are aware and discerning. They value brands that respect their privacy and deliver consistent experiences.
Strategic Imperatives for the Future
Looking ahead, C&R companies must focus on a few key priorities:
- Expand access to first-party data for actionable insights.
- Eliminate ineffective third-party data partnerships.
- Embed capabilities into workflows, not just tech stacks.
- Use data to model workforce and customer behavior.
- Explore complex AI use cases for better personalization.
- Build inclusive governance systems.
By focusing on these imperatives, companies can move from digital adoption to digital excellence. They can deliver experiences that are not only seamless but also emotionally resonant.
Conclusion: A CX-Driven Future Is Here
In conclusion, the “KPMG Global Tech Report” paints a promising picture. Consumer and Retail companies are evolving rapidly. Their digital investments are maturing. Most importantly, their strategies now place customer experience at the core.
By leveraging data, AI, and cross-functional collaboration, these companies are rewriting the CX playbook. As a result, they are not just meeting expectations. They are exceeding them. And in the age of experience, that is what truly sets a brand apart.
