Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’ve been exploring the world of employee experiences, from holiday perks and performance bonuses to the challenges of staff shortages and opportunities for professional growth.
We’re also discussing new updates from Honda, Bank of England, and Gartner.
Key news
- Fresh inflation data dealt a blow to hopes of early interest rate cuts as prices crept higher across Britain and the eurozone in November. UK inflation jumped to 2.6% from October’s 2.3%, while the eurozone saw a rise to 2.2%. Belgium recorded the sharpest increase at 4.8%, with Germany standing out amongst major economies at 2.4%. France and Italy managed to keep inflation below 2%. The Bank of England looks set to hold rates at 4.75% at its Thursday meeting, with core inflation proving stubborn at 3.5% and services inflation stuck at 5%. The latest inflation data suggests European central banks may need to keep their grip on rates tighter for longer than markets had hoped.
- Honda and Nissan are negotiating a potential merger “or other future collaboration,” the two Japanese carmakers confirmed, following an anonymously sourced Nikkei report. The partnership would create a $52bn (€50bn; £41bn) giant, and, along with Toyota, consolidate Japan’s auto industry into two major players. Honda and Nissan previously agreed to collaborate on electric vehicle batteries and software, as they face increasing competition in the EV market from Chinese carmakers and Tesla. Nissan recently lowered its global sales forecasts and announced thousands of job cuts. Renault, which has a 36% stake in Nissan, would have to approve any agreement, but the French group is reportedly open to a deal.
- The port of Holyhead in Wales is to remain closed until at least 15 January after it was damaged during Storm Darragh in early December. Around 150,000 passengers travelling between Britain and Ireland for Christmas will be affected, along with deliveries of pharmaceuticals, stout, beef and cheese, among other goods. The port is the UK’s second largest roll-on roll-off ferry terminal. Passengers have been rerouted through Liverpool, Pembroke and Fishguard, but Stenaline has said that most crossings until Christmas had been fully booked. There are usually eight ferry sailings a day between Ireland and Britain through Holyhead, transporting around 13,000 people.
CXM news stories
Here’s the full news stories that CXM have reported on in the past week. Learn all about the latest news in employee experiences, from talent shortage challenges to how companies turn to employees for growth and innovation.
GenAI will transform customer service by 2027
By 2027, Gartner predicts that 40% of all customer service issues will be resolved through third-party tools powered by GenAI, such as ChatGPT, Google AI, and Apple Intelligence. This trend is changing how consumers interact with customer service platforms, as they increasingly turn to these unofficial tools for quick and easy problem resolution.
Consumers are now accustomed to the convenience of GenAI-powered services, usually choosing them over traditional customer service channels. These tools are integrated into the devices and platforms they use daily, providing a more efficient and seamless experience and reducing the need for customers to engage with official service teams.
“As customers increasingly self-solve issues through GenAI-enabled tools, there will be diminished demand for official first-party service. When customers do have to engage with first-party service, their expectations will be higher,” said Daniel O’Sullivan, senior director analyst in the Gartner Customer Service and Support practice.
As third-party GenAI tools become more embedded in everyday consumer tech, they provide a more intuitive, low-effort solution than traditional customer service options. Unlike navigating complex websites or waiting for assistance, these tools offer immediate responses.
Customer service leaders need to rethink how they allocate resources, focusing on sophisticated queries that third-party platforms cannot easily handle.
Additionally, with the popularity of conversational, AI-driven tools, customers are now accustomed to an effortless, on-demand experience. As a result, their expectations for official customer service have shifted. According to Gartner, 84% of service leaders agree that customer expectations have risen, urging companies to minimize friction in their customer journeys.