Omnichannel

The secret to winning retail CX: Invest in your employees

Competition in retail is fiercer than ever, and adopting a comprehensive approach to employee experience is no longer optional — it's necessary. Adopting new technological advancements, such as AI, and implementing a strategic approach to improving employee engagement is a crucial place to start in ensuring both EX and CX success.

Photo: Adobe Stock

April 22, 2025 by Rebecca Becker — Vice President, Retail Experience Solutions, Forsta

Did you know that companies with highly engaged employees outperform their competitors, making a 23% more profit than those with low engagement? Engaged employees drive customer satisfaction, loyalty, and overall experience, forming the backbone of 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 respond with cost cuts, staff reductions, and operational changes while striving for efficiency. However, balancing these shifts with employee experience (EX) is often overlooked.

Reimagining EX: A strategic lever for retail success

EX goes beyond annual surveys on communication, management, and culture. While these are valuable, it's about ongoing engagement, especially during change, to understand employee perspectives.

By engaging employees through this broader approach to EX, it builds trust and rapport, but also gains invaluable perspectives that improve customer interactions, streamline operations, and enhance business outcomes. In an era of constant change, focusing on EX is not just a nice-to-have but a must-have for sustainable growth and success.

Empower employees to drive better customer interactions

Have you ever entered a store or coffee shop and wanted to leave immediately? Long lines, dirty tables, and stressed employees create a chaotic experience that drives you away. Conversely, attentive staff makes you want to stay.

When employees are well-trained, they become confident. When their voices are heard by management, they feel engaged. And when they're empowered to make decisions that serve the customer, they feel trusted. Engaged employees are more motivated, adaptable, and deliver better personalized, high-quality service, creating memorable experiences that foster brand loyalty even during changes.

Meanwhile, disinterested staff hurts sales, damages reputation, and increases costly turnover. Employee engagement offers a more sustainable solution.The key takeaway: positive employee experience directly translates to positive customer experience.

Leverage frontline employees as experts for strategic success

No one understands the customer experience better than frontline employees. They know their local loyalists and feel the impacts of changes, and offer invaluable insights into process improvements and technology needs.

Engaging employees before, during, and after major changes saves time, prevents CX disruptions, and refines strategies.

Making feedback accessible is key. Digital dashboards can integrate feedback collection seamlessly into workflows. Prompts like "Share Your Ideas: Great ideas come from within" encourage contributions and reveal hidden insights.

Retail is constantly evolving—promotions, product innovations, inventory challenges, and tech enhancements all affect CX. Keeping employees informed and trained on these changes is crucial. Incorporating feedback from employees at all levels can offer insights and bridge gaps that senior leaders might overlook.

Employee expertise enables agile responses, improves project plans, and aligns strategies with customer expectations—strengthening overall customer interactions.

Turn employees into authentic brand ambassadors

Know that friend who can't stop talking (happily!) about their job? Maybe they're always sporting a company-branded hoodie or sharing updates on social media about their workplace. That's a solid brand ambassador!

Happy, engaged, and empowered employees who feel supported by their organization evolve into authentic brand advocates. This pride grows when companies invest in their people through competitive compensation and benefits, and through collaboration, innovation, and inclusion. In turn, this strengthens brand reputation and market presence.

Harness AI and technology to support employee and customer experience

Just like when the internet first emerged, many were skeptical — questioning its trustworthiness and potential. Yet, it quickly became essential. AI is on a similar path: 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 employees to focus on high-impact, customer-facing activities that set your brand apart.

Used responsibly, AI can be a game-changer for both EX and CX. Imagine getting a pulse on your customers and employees across hundreds of locations almost instantly. AI can identify trends across various demographics that can help employees adapt and improve service.

The key is balance — AI should support, not replace, human interactions. During operational shifts, it can gather feedback and highlight areas for improvement, ensuring employees stay equipped for new challenges.

Bringing it all together

Today, competition in retail is fiercer than ever, and adopting a comprehensive approach to EX is no longer optional — it's necessary. Adopting new technological advancements, such as AI, and implementing a strategic approach to improving employee engagement is a crucial place to start in ensuring both EX and CX success.

About Rebecca Becker

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As the Vice President of Retail Experience Solutions at Forsta, dedicated to transforming the retail landscape through innovative technology and customer-first strategies. With over 20 years of experience spanning store management, merchandise presentation, eCommerce, and digital operations, she has led high-performing teams at Kohl’s and Lands’ End while also consulting for Claire’s to enhance digital merchandising strategies and operations. 

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