Customer experience in retail is at a tipping point, and loyalty is on the line.

As retailers eagerly race to embrace digital innovation, many are unintentionally abandoning the very thing that drives their bottom line: trust. And without trust, retailers won’t gain the competitive edge necessary to leave a lasting mark in a highly crowded industry.

In a hyper-connected world, customer experience in retail is under the microscope. Every checkout page, online search, app experience, and store visit adds up, leaving minimal room for error across myriad channels. When even one customer experience falls short, even just a little bit, consumers don’t just notice and give you a pass. They leave your retail brand behind in favor of a competitor.

Building trust in the retail isn’t a passing trend. It’s a strategic inflection point. Retailers are being pulled in two divergent directions driven by generational expectations. The days of only viewing customer experience (CX) as a transaction are long gone. A human-centered model reaps the greatest rewards, helping retailers gain both loyalty and profitability.

At PG Forsta, we believe the answer to impactful and meaningful CX lies in Human Experience (HX). This approach to CX fosters a smarter, more inclusive CX: one that listens, adapts, and delivers with intention and human interests in mind.

In this post we’ll reveal key retail findings from our 2025 CX trust deficit report and what it takes to drive customer loyalty in the retail realm in 2025.

Cracks in the loyalty curve

Our own original research in partnership with Watermelon paints a clear picture: loyalty today is conditional. And the stakes are highest in the retail sector. We found gaps in generational expectations, which highlights the need for a holistic CX, that considers varying age groups that may be shopping for your products.

• Gen Z consumers are leading the charge for change. Digital by default, they switch brands fast. In fact, our research shows 63% of US and 62% of UK Gen Z shoppers say they jump ship after just one or two poor experiences. The takeaways are clear: Gen Z shoppers are less forgiving and expect seamless, tailored interactions. When any semblance of friction, confusion, or generic engagement shows up, they’re gone.
• Older generations, on the other hand, are often more loyal, but they’re being left behind. These customers prefer traditional touchpoints and human interaction. Many are disengaging because they feel excluded by digital-first strategies that don’t reflect their needs or preferences.

This widening disconnect is costly. As evidenced by our research, fragmented journeys are draining the bottom line:

• UK retailers lose an estimated £3.1 billion annually to poor CX
• In the US, that figure climbs even higher to $191 billion

Retailers must ask: What’s the cost of not listening? And what’s the payoff when we do?

Delivering personalization that feels personal

Retail shoppers today expect personalization. But they don’t want gimmicks—they want relevance. Our research shows:

• Shoppers will share data, but only if they see value in return.
• Retail consumers crave experiences that anticipate needs, respect boundaries, and eliminate unnecessary steps.

For many retailers, the challenge isn’t access to data but rather how to use it meaningfully. That means designing experiences around actual human behavior, not marketing assumptions.

At PG Forsta, we help brands move beyond personalization as a checkbox. Our HX platform uses behavioral data, multichannel feedback, and AI-enhanced insights to power real-time journey refinement. It’s personalization with a purpose—where every touchpoint is smarter, smoother, and more aligned with customer intent.

It also means respecting privacy. Our approach supports:

• Ethical data collection
• Consent-driven feedback loops
• AI that enhances, not replaces, the human experience

When personalization works, it feels effortless. We help ensure it always lands on the side of trust.

Small frictions, big fallout

Loyalty doesn’t unravel all at once. It erodes in the small moments. Consider the following scenarios and step into a retail customers shoes:

• Using a retailer’s mobile app that crashes mid-checkout
• Checking out at a self-service terminal that doesn’t scan properly
• Trying to use a promo that works online but doesn’t ring up in-store

These seemingly minor issues are loyalty killers. Our data shows:

• 38% of UK shoppers and 32% of US shoppers have abandoned purchases due to app malfunctions
• 36% of UK and 33% of US customers switched brands after a bad self-checkout experience
• Nearly 40% of shoppers would walk out the store if faced with long checkout lines

Yet most of these pain points go unreported. Why? Because traditional CX programs aren’t built to capture unstructured feedback at scale.

PG Forsta changes that. Our platform synthesizes data from both structured and unstructured data such as reviews, chat, surveys, and social media to surface patterns, pinpoint issues, and eliminate friction. We turn noise into signals and signals into action.

The result? Fewer lost sales. Smarter operations. And a loyalty curve that trends upward.

Trust and transparency in the AI era

Retailers are leaning heavily into AI—from chatbots to dynamic pricing to product recommendations. But while the tech is impressive, trust is fragile.

• 40% of UK consumers and 38% of US consumers say they’d lose trust—or stop shopping entirely—if they discovered AI was used without clear disclosure.

Consumers don’t reject AI outright. They just want to know when it’s in play. And more importantly, they want to see that it serves them, not just the brand’s efficiency goals.

PG Forsta helps retailers take an ethical, transparent approach to AI adoption:

• We support clear labeling and disclosures
• We embed ethical principles into AI governance
• We focus on enhancing, not replacing, the human touch

When AI is deployed with care and context, it becomes a value-add. When it’s hidden, it becomes a trust risk.

The power of HX: Reconnecting with every customer

To rebuild trust and retain loyalty, retailers need to go beyond CX. They need to adopt HX: Human Experience at every touchpoint.

HX is about seeing customers not as transactions or personas, but as people. It means:

• Listening across every touchpoint
• Understanding not just what customers do, but why
• Integrating emotional, behavioral, and contextual data

PG Forsta enables this holistic view. We help retailers map journeys that reflect real human behavior—from the first click to the final receipt.

HX also helps brands:

• Resolve the generational gap
• Balance automation with empathy
• Foster brand relationships built on relevance and respect

When a brand truly listens, it doesn’t just improve experiences. It creates loyal advocates.

See what customers are really telling you

Want to know how your brand measures up? Ready to bridge the generational gap and re-earn trust?

Download the 2025 CX trust deficit report and discover what it takes to deliver human-centered retail experiences that last.