Latest news with #CX
Yahoo
7 hours ago
- Business
- Yahoo
4 takeaways from Starbucks' customer experience plans
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Starbucks is maintaining its emphasis on CX, with an eye toward operations, as it pursues a turnaround. The Back to Starbucks plan, which was introduced in September 2024 and grounded in customer and associate feedback, remains the right strategy for the job, according to CEO Brian Niccol. In-store customer experience plays a key role in the turnaround effort. 'We are building a better Starbucks, where everyone can experience the best of Starbucks, one that is stronger, more resilient and consistently growing, a Starbucks that is once again the gold standard in customer service, partner experience, the coffeehouse experience and financial performance,' Niccol said on a Q3 2025 earnings call Tuesday. Starbucks still has work to do. Global comparable store sales fell 2% year over year in the third quarter of 2025, according to a company earnings report. Total net revenue rose 4% year over year to $9.5 billion. Executives say that the company is on the right track, and that efforts like the Green Apron Service model are setting the stage for improvements to come. 'We're fixing the operational foundations of the business and building a platform for innovation in 2026,' Niccol said. 'Some of the changes are already visible while others will be seen in the months ahead.' Executives shared Starbucks' CX wins and fresh initiatives on the company's third quarter 2025 earnings call. Here are four major takeaways: 1. Experience investments are showing promise While Starbucks' comparable sales are still trending downward, customer perceptions of the experience are on the upswing, according to Niccol. Customers are taking notice of improvements to speed, hospitality and accuracy at Starbucks locations, according to Niccol. Customer connection scores are up and customer complaints are down quarter over quarter and year over year, while the brand's value perceptions are at near two-year highs. The company is seeing gains among Gen Z and millennial customers, who make up over half of Starbucks' base, according to Niccol. Transaction growth from non-Starbucks Rewards members also rose year over year. Starbucks is adopting a growth scorecard to help the company keep track of the metrics that will drive its future financial performance. 'It's about the customer,' Niccol said. 'It's about our being staffed correctly. It's about ensuring that we obviously get the right speed requirements hit. And so when we do those things, we see the outcomes that we want, which is transaction growth which then ultimately, I think, is a key indicator of health in the business.' 2. Four-minute handoffs remain a priority One of the biggest challenges at Starbucks in recent years has been wait times, driven by the popularity of mobile ordering — which was slowing down in-person and drive-thru customers. Niccol made getting mobile orders under control a top priority and set the goal of fulfilling in-person orders within four minutes and mobile orders in no more than 12 to 15 minutes. Efforts like better order sequencing have helped speed up drink making, and average peak drive-thru times are at three minutes and 20 seconds at the 7,600 locations with drive-thrus, according to Niccol. Starbucks will maintain its commitment to four-minute handoffs as it rolls out new processes, according to Niccol. 'One of the principles for our innovation is it cannot negatively impact our ability to deliver on cafe orders in less than four minutes,' he said. The company is using Green Apron Service to prepare it to implement innovations without slowing down the customer experience, according to Niccol. The model is expected to help Starbucks make further changes while minimizing the impact on baristas. 3. CX benefits have a ramp up time Green Apron Service, slated to start expanding across company-operated U.S. locations in August, is being rolled out ahead of schedule, according to Niccol. The company's goal is to have the model in place ahead of pumpkin spice season, according to Niccol. While cafes with Green Apron Service saw improvements to metrics including sales and customer service times, they didn't manifest immediately. Green Apron Service includes adding more employee hours, and it 'takes a little bit of time for us to get into a rhythm with the new labor that we have on the team,' Niccol said. 'And that also takes a little bit of time for our customers to recognize that they're getting a different kind of service experience.' However, once established, locations using Green Apron Service show good results, according to Niccol. He noted that customers appreciate the better experience, and he expects the positive trends to continue improving. Many customers come into Starbucks for pumpkin spice season, "and now they're going to experience Green Apron Service," Niccol said. "And I just think that's a winning proposition for us that sets the table for what's to come in 2026.' 4. Loyalty is still growing Starbucks Rewards has nearly 34 million 90-day active members, and Starbucks plans to continue evolving the loyalty program to keep them coming back. Plans include a new Starbucks app, enhancements to mobile order and new pay options 'that will further improve our ability to deliver a great customer experience at pickup,' Niccol said. The company plans to address customer feedback with its updates. One of Starbucks' goals is to continue growing non-discounted transactions with loyalty members, according to Niccol. That number is on the rise quarter over quarter, but Niccol sees more work to do, noting that the rewards program has put too much emphasis on discounts. 'And the feedback we've gotten from customers that are part of it is, if I'm a really big loyal customer, I think there should be more recognition of that,' Niccol said. 'And if I'm a less frequent customer, we should then set up the program so that it fits for them.' Starbucks plans to tailor the program to be more about recognizing loyalty and engagement, according to Niccol. The company expects to reveal more information in February 2026. Recommended Reading Verizon sees CX as key pillar in its fight against customer churn
The Independent
2 days ago
- Business
- The Independent
The future of CX research: context and closeness in a demanding world
The Harris Poll UK, a Stagwell Company is a Business Reporter client Exceptional customer experience doesn't happen by chance. It's engineered from a deep foundation of continuous customer understanding. In a marketplace defined by rapid change and rising expectations, businesses can no longer afford to assume they can anticipate customer needs. The smartest organisations are turning CX research into a strategic asset – and here's how they're doing it. Executive teams need to reframe market research as a foundational driver of successful CX – fuelling agility, loyalty and sustainable growth. At the heart of this transformation is a simple but powerful truth: context matters. And in a demanding world, the brands that thrive will be those that remain genuinely close to their audiences – not just through dashboards and KPIs, but through dynamic, two-way dialogue. Elevating CX tracking with targeted, agile research to move from 'what' to 'what next' In fast-moving markets, where customer expectations can shift overnight as a result of economic volatility, technological disruption or cultural change, organisations need more than trendlines to drive strategy. This is where custom research studies, conducted alongside your CX tracker, become indispensable. This creates a dynamic, closed-loop system where performance signals spark exploration and contextual findings enrich future tracking. This built-in agility allows you to respond quickly to reputational risk, a regulatory change or an emerging customer trend – without losing sight of the bigger picture. There's a strong competitive advantage when the same researcher partner oversees all research elements. This allows for non-siloed, connected insights which are discovered faster and cheaper – and guarantees that nothing is missed. The Harris Poll UK, A Stagwell Company, is currently working with a multi-channel retailer and has embedded custom, context-rich research into its CX tracking programme. In doing so, they have been able to do three key things: first, truly understand what customers are thinking when they provide a score for 'quality.' Second, size how many pain points might be remedied with an additional sales consultancy step in the purchase journey; and third, maximise conversion rates for online add-ons through making changes to the digital purchase experience. This integrated approach delivers a holistic, agile view of the customer experience which empowers the business to stay ahead of change with clear, actionable solutions. Bring society into the boardroom with Consumer Polling alongside your CX scorecards The most forward-thinking CX leaders understand that staying close to people means looking into the broader societal context that shapes customer expectations. It's not just about knowing what your customers thought last month – it's about understanding how public attitudes, cultural dynamics and shifting priorities are shaping how your target audience feel and behave right now. Consumer polling alongside your CX scorecards becomes a strategic asset when it captures real-time sentiment from both customers and the wider public. Unlike static surveys, it brings societal context into the boardroom including the trends, anxieties and expectations that shape brand perception. Frequent polling helps businesses stay aligned with what truly matters, especially in disruptive times. Whether it's economic uncertainty, political instability or evolving views on sustainability, this type of research helps executive teams interpret the emotional and cultural backdrop of customer decisions. Retailers have benefited from The Harris Poll UK's consumer polling. They gained timely insights into public sentiment around fashion purchases amid the cost-of-living crisis and the growing appeal of pre-loved clothing. The research bridged the gap between CX insights and societal context, equipping brands with an understanding of shifting priorities and ways their CX should evolve to compete where consumers are spending less. Crucially, when this polling is embedded within the same agency-led CX ecosystem that manages your tracking and customer experience strategy, the value multiplies. The result is a more joined-up, contextual understanding of the customer landscape, where next steps are informed by both lived experience and societal mood. Knowing what people truly care about shapes decisions that resonate both commercially and culturally. Uncover and understand meaningful CX Signals with expert-guided Community dialogue Digital insight communities represent a fundamental transformation in how brands connect with their audiences. These always-on platforms foster an ongoing, living dialogue with consumers – enabling co-creation, concept testing and the exploration of complex issues over time. Unlike traditional surveys that capture snapshots, insight communities generate rich, evolving engagement with highly invested and intelligently profiled participants. The true power of these communities is unlocked when they are managed concurrently with a CX programme by a single team of multi-methodology experts. A team with deep sector knowledge and an ear finely tuned to the broader UK population, beyond your existing customer base, ensures insights from the community are not isolated but fully integrated into your CX strategy. This then provides a holistic, contextualised view of customer experiences and wider consumer attitudes. A prominent UK financial services company partnered with The Harris Poll UK, A Stagwell Company, to leverage its multi-methodology expertise, sector knowledge and broad perspective to co-create impactful customer experiences before, and during, the launch of new proposition features. The always-on, rapid feedback targeted cohorts in the Insight Community. This quickly uncovered early pain points and highlighted whether the new features successfully remedied previous issues. This approach allowed the brand to not only refine processes and messaging, but its full launch strategy. It optimised the complete customer experience ahead of the enhanced proposition being scaled to a larger customer base. The future of CX research isn't just about gathering more, better or faster data – AI is already advancing that front and will continue to do so. It's about building stronger relationships through empathy, relevance and action. In a fragmented and demanding world, customers gravitate toward brands that make them feel heard, respected and understood. That means building on dashboards and trackers. It means investing in agile methods, consumer context and deeper dialogues that help teams move with clarity and confidence. When done right, CX research doesn't just inform strategy – it becomes the strategy. Because in the end, the brands that listen closest – and act fastest – are the ones customers will choose. The Harris Poll UK is a leading market research company that provides some of the UK's best-loved brands with game-changing insights through CX, insight communities, custom research and consumer polling. We use a combination of our proprietary software alongside advisory services to deliver data insights via flexible service models. Visit our website, to find out more.
Arabian Business
2 days ago
- Business
- Arabian Business
From support function to strategy: Embedding customer experience in luxury brands
When you walk into a luxury flagship or the latest pop-up in Dubai or Riyadh, you expect to have a polished experience: an elegant welcome, personalised attention, and a smooth interaction. Too often, behind these curated moments, brands still operate with a fractured view of customer experience. In a region where expectations are rising fast and digital behaviours are evolving daily, luxury brands can no longer afford to treat customer experience (CX) as a standalone function. It has to become a foundation that shapes every decision. Luxury consumers in the GCC are among the most sophisticated in the world. They travel frequently, shop across continents, and benchmark their experiences globally. A client browsing in Abu Dhabi expects the same level of experience they find in Paris or Milan, if not more. And they compare not only across geographies but also industries: the ease of booking a fine dining reservation is the standard against which they measure buying a bespoke piece of jewelry. They expect this consistency across channels, online and offline, and are quick to notice when a brand's storytelling doesn't match its service delivery. This is where many brands stumble. They design exceptional store experiences but follow them with a clunky return process. They launch immersive online campaigns but rely on static websites that undermine the message. Customers don't experience brands in silos; they experience one journey. When the journey feels disjointed, it signals something deeper: that the brand is not truly customer-centric. Despite growing awareness, many luxury houses are still trapped in traditional models. They collect vast amounts of customer data but struggle to extract actionable insights. They create CX teams but lack a shared framework for acting together, across functions. They announce bold experience visions at the C-suite level, but without embedding CX into how teams are trained, resourced, and incentivised, the gap between ambition and reality persists. This disconnect is not only operational; it is cultural. Brands that excel at CX are those where every team, from logistics to marketing to customer service, sees itself as part of the customer journey. They live by a simple principle: if you are not directly serving the customer, you are enabling someone who is. They align around a shared definition of what 'great' looks like, and they use metrics not as mere 'scores' but as a compass for decision-making. That integration is what turns fragmented touchpoints into cohesive, memorable experiences. Closing this gap requires more than quick fixes. It calls for an integrated approach. That means redefining what CX actually means inside the organisation, not as a department or title, but as a mindset. This redefinition goes beyond simply adapting global templates. It requires creating experiences that are locally relevant while remaining globally consistent. In the Gulf, that might mean curating exclusive collections, hosting culturally meaningful events, or fine-tuning services to reflect local expectations without diluting the brand's DNA. When customer experience becomes the lens through which leadership sets priorities, operations make trade-offs, and teams are rewarded, the entire journey improves. This shift can take many forms. Brands can start by embedding CX metrics alongside financial and operational indicators so that experience is actively measured with the same rigor as sales or profitability. They can equip frontline teams with timely, actionable customer insights through an integrated Voice of the Customer program, empowering them to anticipate needs rather than simply react to issues. They can also conduct ecosystem-wide assessments to uncover not only what customers see but also what they do not: outdated selling ceremonies, fragmented CRM systems, and unclear ownership of key touchpoints. Addressing these often-overlooked frictions builds the consistency and trust that ultimately drive growth. The payoff is significant. In highly connected markets like the GCC, where word-of-mouth travels fast, a truly differentiated experience can amplify brand advocacy far more effectively than traditional marketing spend. Conversely, a poor experience quietly drives attrition that no loyalty campaign can repair. In luxury, where the emotional stakes are high and every interaction reinforces or undermines brand equity, the margin for error is small. Crucially, embedding CX does not mean starting from scratch. It is about elevating what already makes a brand distinctive and amplifying it consistently across every interaction. It is not about adding another transactional initiative to keep customers engaged. It is about rethinking how the organisation listens, learns, and acts, day after day. In the years ahead, the brands that win in the Middle East will not be those with the loudest campaigns, but those that put the customer at the heart of every decision. They will be the ones that stop treating CX as a support function and start using it as a strategic engine. That shift will not happen overnight. But it begins with a simple question every brand should ask itself today: Are we organised around the customer, or just around ourselves?
Tahawul Tech
3 days ago
- Business
- Tahawul Tech
Global study by Cisco shows that hyper-personalisation is mission-critical for CX
Cisco has unveiled the findings of its global study on CX, which showed that AI, hyper-personalisation and proactive engagements are going to be key for enterprises looking to ensure that they continue to deliver first-class CX for their customers. Advancements in artificial intelligence, hyper-personalisation, rich communication services, and unified data are expected to enhance customer loyalty and address rising expectations in the Middle East and beyond. For many organisations, delivering an outstanding CX remains a challenge; a global study conducted by Cisco showed that many customers feel let down by the experiences they receive from brands. Only 25% of customers globally said they were very satisfied with their last service engagement—and 94% have abandoned interactions due to poor experiences. To meet growing customer expectations, businesses in the Middle East are leveraging AI, data analytics, and integrated platforms to improve efficiency, drive customer satisfaction, and support sustainable growth. Ahmad Zureiki, Director of Collaboration Business, Cisco Middle East and Africa, commented: 'As customer experience leaders evaluate their investments, it is important to anticipate what's around the corner, assessing how future developments may impact CX strategy and execution. Leaders in CX are approaching AI technology with a clear, strategic focus – one that prioritises customer impact, agent empowerment, and operational efficiency. The widespread adoption of AI will enhance customer experiences and redefine engagement benchmarks, solidifying its role as a vital component of customer service in the region.' AI agents will revolutionise self-service AI agents will redefine self-service by enabling more intelligent, human-like interactions across voice and digital channels. Unlike traditional virtual assistants, these advanced AI-driven agents will engage customers in natural conversations. They ensure faster and more effective resolutions, while freeing human representatives to handle complex or high-value cases. Brands will increasingly tailor these kinds of agents to reflect their unique values, creating more authentic and emotionally resonant experiences. Additionally, the rise of low-code and no-code tools will make AI more accessible, allowing non-technical employees to deploy and refine artificial intelligence solutions easily. With AI adoption accelerating, leading companies are already leveraging AI agents at a significantly higher rate than their competitors, emphasising its role in shaping superior customer experiences. In fact, Cisco's global study showed that 79% of 'CX Leaders' (companies with the highest business performance) have an AI virtual agent, whereas 7% of 'CX Laggards do' (companies typically slower to adopt new ideas, technologies, or trends). Hyper-personalisation will become mission critical for CX AI will revolutionise personalisation by helping organisations extract valuable insights from customer data to anticipate needs, tailor experiences, and drive upsell opportunities. Businesses will leverage AI to create hyper-personalised journeys that seamlessly transition between automated and human-assisted interactions, enhancing CX and fostering long-term loyalty. A key element of this transformation is proactive communication. Brands that engage customers with timely, automated messages will reduce friction, resolve issues before they arise, and strengthen relationships. As AI adoption grows, these proactive, personalized experiences will set new customer expectations, with CX leaders already leveraging AI at a significantly higher rate than their competitors. It is notable that 61% of CX Leaders deliver proactive communications using AI. Rich Communication Services (RCS) adoption will skyrocket Rich Communication Services (RCS) will see a surge in adoption as its support on both iPhone and Android expands its global reach. With its ability to deliver rich media, interactive messaging, and two-way engagement, RCS is poised to become the industry standard for business communication. Brands will leverage its advanced features for promotions, reminders, and seamless interactions while benefiting from improved security through end-to-end encryption and verified sender profiles. As businesses recognize its value, RCS will play a crucial role in building customer trust and elevating digital engagement. CX data will have to become unified Unifying customer data will be essential for delivering AI-driven, hyper-personalised experiences across multiple channels, including RCS. While large organisations face challenges in consolidating data from disparate sources, achieving a holistic customer view will be fundamental to optimizing CX. By integrating data from various systems, businesses will empower AI and human agents with real-time insights, enabling faster resolutions and more seamless interactions. Moreover, a comprehensive understanding of customer needs will maximize AI's potential, allowing brands to anticipate issues, proactively engage customers, and provide trust. With unified data, organisations can identify trends, reduce friction points, and refine experiences at every touchpoint. As the CX landscape and customer expectations continue to evolve, Webex by Cisco is helping to bridge the digital divide with an AI-powered, self-learning contact center that delivers unmatched self-service, empowers agents with essential tools, and connects data to drive real business results. By equipping agents with real-time insights, journey data, and context for each customer, organisations can strive to not only meet but exceed expectations, delivering the best experience, every time.
TECHx
3 days ago
- Business
- TECHx
Cisco Predicts AI-Led Shift in Customer Experience
Home » Emerging technologies » Artificial Intelligence » Cisco Predicts AI-Led Shift in Customer Experience Cisco has revealed predictions for a major transformation in customer experience (CX), driven by artificial intelligence, hyper-personalization, and unified data. The company reported that advancements in AI and communication technologies are set to enhance customer loyalty and meet rising expectations across the Middle East and beyond. According to a global study conducted by Cisco, delivering an exceptional CX remains a challenge for many organizations. Only 25% of customers globally said they were very satisfied with their last service interaction. Moreover, 94% reported abandoning interactions due to poor experiences. To meet growing expectations, businesses in the region are adopting AI, integrated platforms, and data analytics to improve efficiency and drive customer satisfaction. Ahmad Zureiki, Director of Collaboration Business, Cisco Middle East and Africa, stated that CX leaders are approaching AI with a strategic focus that prioritizes customer impact, agent support, and operational efficiency. He emphasized that the widespread use of AI will redefine service engagement benchmarks. Cisco reported that AI agents will play a critical role in revolutionizing self-service. These advanced virtual agents will offer more human-like interactions across digital and voice channels. They will help resolve issues faster and allow human representatives to focus on complex cases. Companies will also tailor these agents to reflect their brand values. Cisco highlighted that: 79% of CX leaders already use AI virtual agents. Only 7% of CX laggards have adopted such tools. The company also revealed that hyper-personalization will be mission-critical. AI will enable businesses to extract insights, anticipate needs, and tailor experiences. Proactive communication, powered by AI, will help brands resolve issues before they occur and enhance customer relationships. Cisco found that 61% of CX leaders use AI to deliver proactive communications. The adoption of Rich Communication Services (RCS) is also expected to surge. With support across Android and iOS, RCS allows for rich media, interactive messaging, and secure communication. Cisco said RCS will become essential for trusted digital engagement. Unifying customer data will be key to enabling these capabilities. Cisco noted that integrating data from various systems allows agents and AI tools to access real-time insights. This supports faster resolutions and smoother interactions while helping brands anticipate issues and reduce friction. Cisco concluded that Webex is helping bridge the digital gap through AI-powered, self-learning contact centers. These solutions empower agents with context, journey data, and tools to consistently exceed customer expectations.
