CX News
Faster service key to reducing chargebacks
Chargebacks are a drain on retailers. They take financial and time resources from organizations and CX teams to address - to the tune of over $15B in the US expected in 2026.
A new report found that consumers are quick to turn to them, with almost 23% filing immediately while 38% will file 1-3 days after experiencing an issue.
Speedy service is key, then, to mitigating chargebacks. Invest in AI powered CX tools that either address customer concerns up front, or free up time for your human reps to address complex issues. Evaluate how many chargebacks your organization handles before and after - you just might find you can reduce them, boosting the return on your CX investment.
Customers want empathy over speedy responses
New consumer research reiterates the importance of the human in the loop model, with these notable findings:
- 72% of consumers are open to AI powered CX experiences if they can escalate to a human
- 59% would rather start with a chatbot than wait for a live agent
- The majority of consumers want to connect over phone with 74% preferring this for complex or urgent scenarios
- 86% say empathy and human connection are more important than quick responses
The TL;DR here is that AI powered tools are supposed to augment the customer experience, not replace it. Empathy is key to delivering the high quality service that brings consumers back.
Personal brand shoutout
This is a newsletter, but we can have some fun, and personal (not sponsored) anecdotes are how you know a human being writes this! So I want to shout out what an awesome customer experience I had with Azazie and break down what they did right.
I'm a bridesmaid in an upcoming wedding and needed to get my dress. I did Azazie’s home try-on program a few weeks back which was totally smooth. After, Azazie sent me a discount code to order my dress - but it had expired by the time I was ready to place my order.
I started a chat and asked if they could extend the code. Its generative AI chatbot said no, but suggested other discount options like sales or student discounts. This was neat, but didn’t apply to me.
I clicked "talk to a human" and it set the expectation that someone would get back to me in 2 hours or less over both chat and email - but someone got back to me in about 5 minutes! The agent happily got me another code and made it valid for a few months.
Azazie did a lot of things right. What impressed me the most? They did not have to do this. With the nature of a bridesmaid dress, I was still going to order from them to get the exact right dress color for the wedding party - discount code or not. Azazie absolutely knows that!
But they were so nice and the experience was so smooth. As a result, they got a first contact resolution and some goodwill. I’m sure the agent didn’t know that I write a CX newsletter, but it’s a good reminder - your customers will evangelize good experiences, and you never know what kind of platform they have.
Tune In
We’re lining up an incredible (and free) virtual event featuring some of the biggest names and boldest thinkers in customer experience. Kustomer CMO Gabe Larsen will be chatting with a few of the coolest people in the industry.
🎤 Great speakers
💡 Big ideas
📍 No travel required
It’s coming up on April 30th, kicking off at noon ET.
AI News
Former Microsoft execs get AI Agent startup funding
Automaise, founded by ex-Microsoft execs, just raised €5M for their low-code AI platform that empowers customer self-service, boosts agent performance, and automates workflows—cutting complexity and driving ROI. With expansion plans across Europe and the U.S., Automaise aims to make next-gen AI agents accessible to all.
However, the company is still small with a goal to get to 30 employees by the end of the year. Going with a more established player for your AI powered CX needs may help you keep up or surpass competitors.
Google Cloud’s predictions for AI
Google Cloud’s AI Business Trends 2025 report spotlights AI’s growing role in transforming customer service. It predicts chatbots will evolve into multi-agent systems, search to become assistive and multimodal, and AI to drive hyper-personalized, seamless CX. With real-time sentiment analysis and deeper context from video, text, and images, service leaders can respond smarter and faster.
The future of CX isn’t just AI-powered—it’s AI-coordinated. Leaders must prepare for systems that plan, reason, and collaborate like teams.
Golden Nuggets
USPS plans to use AI to enhance customer service
AI-powered self-service: Ethical, privacy considerations
Amid Volatility, Business Leaders Prioritize Supply Chain Resilience to Meet Growing Customer Demands
