4 trends transforming customer experience in 2025

As we move into 2025, customer experience (CX) continues to be a critical differentiator for businesses.

The dynamics of customer interactions are shifting, driven by technological advancements and changing consumer expectations.

Here are some key trends that will shape customer experience in the coming year, with a particular emphasis on data privacy and trust.

1. Make it easy

One of the fundamental principles of excellent customer experience is simplicity. Make every interaction a user has with your company seamless and simple. Our attention span is smaller than ever, our expectations are higher than ever. The benchmark for every business can be set by any brand your consumer interacts with – if they have a great online banking experience, then they expect the same intuitive functionality and ease of use with their online grocery provider.

Companies like Zappos have set the bar high by going above and beyond to make things easy for their customers. For instance, Zappos is known for sending customers to competitors if they don’t have the product in stock and even answering calls for pizza orders. This level of dedication to customer satisfaction builds trust and loyalty.

Simplifying customer interactions often involves collecting and processing personal data to streamline services. For example, reducing friction points or barriers in purchasing a product because you already know relevant information about them.

To maintain trust, businesses must ensure that data collection is transparent and that customers are aware of how their data is being used. Implementing clear and concise privacy policies, obtaining explicit consent, and providing easy opt-out options are essential.

2. Subtract to add

Improving customer experience isn’t always about adding new features or services; sometimes, it’s about taking things away. This concept, known as “subtraction to add,” involves identifying what can be removed to streamline processes and enhance the customer journey. Whether it’s outdated policies or entire business areas, simplifying operations can lead to a more satisfying customer experience. Encouraging a culture of unlearning and rewarding subtraction ideas can foster innovation and efficiency.

When businesses streamline operations by removing unnecessary processes, they must also consider the data privacy implications. This includes identifying and eliminating redundant data collection practices that may no longer be necessary.

By minimizing the amount of data collected and stored, businesses can reduce the risk of data breaches and enhance customer trust. It is also important to regularly review and update data retention policies to ensure compliance with data protection regulations.

3. Generative AI

It wouldn’t be a ‘trends’ blog without mentioning generative AI (GenAI) – but it is poised to revolutionize customer experience. According to Gartner, by 2026, organizations that apply GenAI are expected to achieve 10% higher CX maturity.

GenAI can simulate customer behavior, predict preferences, and provide consistent messaging through AI assistants. For example, the DoNotPay chatbot has successfully lowered a customer’s Comcast bill and helped users get refunds and avoid tickets. These AI-driven solutions not only enhance productivity but also build trust by providing reliable and accurate information.

The use of GenAI in customer experience requires the collection and analysis of vast amounts of personal data. To ensure data privacy, businesses must implement strict data governance frameworks that outline how data is collected, processed, and stored.

This includes anonymizing data where possible and ensuring that AI models are trained on secure and compliant datasets. Transparency is key; customers should be informed about how their data is being used by AI systems and given the option to opt-out if they choose. Additionally, businesses must regularly audit their AI systems to ensure they are not inadvertently violating privacy regulations.

4. The rise of Machine Customers

Machine customers, or nonhuman economic actors that obtain goods or services in exchange for payment, are becoming more prevalent. These autonomous entities can request services, negotiate deals, make purchases, and provide feedback.

For instance, Tesla’s vehicles can request services, and HP’s instant ink service can automatically order ink when supplies run low. Gartner predicts that machine customers are expected to generate 15% to 20% of revenue by 2030. Organizations like HP, Airbus, GM, Ford, DBS, and BMW already have entire dedicated business units for machine customers.

The rise of machine customers introduces new challenges for data privacy. Businesses must ensure that the data exchanged between machine customers and their systems is secure and protected from unauthorized access. This includes implementing encryption protocols and secure authentication methods.

Businesses also must consider the ethical implications of machine customers collecting and using personal data. Clear guidelines and regulations should be established to govern the data practices of machine customers, ensuring that they adhere to the same privacy standards as human customers. If a machine customer gives consent on behalf of a human, is it valid? Does it carry a different weight? What will happen to traditional forms of sales and marketing when your customer is a machine?