Inside the 2024 Retail Customer Experience Index
Technology keeps racing ahead, and so do shoppers’ expectations. In that context, Incisiv and Talkdesk released the 2024 Retail Customer Experience Index—a practical readout on how well retailers are keeping pace. With more shopping happening online or blending online and in-store, the bar has moved. Retailers now need hyper-personalized service and smooth, connected interactions across every touchpoint, from the first question to the final return.
How the Retail Landscape Is Shifting
The Index takes a close look at customer engagement across 131 top U.S. retailers, spanning multiple segments, including apparel and luxury goods. It doesn’t just score features; it gauges how those features come together to serve real customer needs.
The headline number is hard to ignore: average customer experience maturity sits at just 34%. That signals a wide gap between what shoppers expect and what many retailers deliver. Too often, journeys aren’t personalized, and the core technologies that make experiences feel effortless aren’t fully in place.
Where Customer Experience Technology Is Improving
There’s good news, too. Retailers have made meaningful progress in several areas that matter to customers day to day:
- AI-powered solutions: The use of virtual assistants jumped from 38% in 2022 to 59% in 2024, a sign that retailers are leaning on AI to speed answers and reduce friction.
- Enhanced support personalization: Support agents offering personalized recommendations climbed more than 80%, from 27% to 49% over the same period, bringing advice closer to what shoppers actually want.
- Sector-specific trends: Home furnishings leads on experience maturity with a 40% adoption rate, while the watch segment trails at 28%—a reminder that progress isn’t uniform.
What Leading Engagement Looks Like
The Index also highlights how retailers are using engagement tactics to meet customers where they are—and keep them there:
- Apparel and luxury leaders: Apparel brands are early movers on outreach, using text messaging and omnichannel communication to connect quickly and consistently.
- Advanced support systems: Luxury brands shine at complex service, enabling order changes and returns right inside chat—no phone queue required.
- Personalized shopping experiences: Luxury retailers also excel at tailored services, from one-on-one appointment scheduling to recommendations that reflect individual tastes.
The Road Ahead for Retailers
The takeaway is clear: there’s urgency to strengthen the tech stack behind customer service. AI and automation aren’t just nice-to-have; they’re the engine for the hyper-personalized, low-effort experiences shoppers already expect. Used well, the Index can serve as a baseline and a roadmap—helping retailers prioritize the capabilities that close the gap between promise and experience.
Frequently Asked Questions
What is the purpose of the 2024 Retail Customer Experience Index?
It measures how effectively retailers are meeting customer expectations in a shopping world that’s increasingly digital and cross-channel, offering a clear benchmark for where they stand and where to improve.
What are some key advancements noted in the report?
Two standouts: wider adoption of AI-driven tools like virtual assistants, and stronger personalization in support—such as agents offering recommendations tailored to each shopper.
How does the report categorize the retail landscape?
It evaluates 131 leading U.S. retailers across segments that include apparel, consumer electronics, and luxury goods, comparing how each segment performs on customer engagement and service maturity.
What challenges do retailers face regarding customer engagement?
Many still fall short on personalized journeys and haven’t fully implemented the technologies that match customer expectations, reflected in the average maturity score of 34%.
Why is personalized customer support important for retailers?
Personalized support makes shopping feel easier and more relevant, builds loyalty over time, and aligns with rising demand for services like one-on-one appointments and tailored recommendations.
