Old man Buffet famously said “Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future,” but he didn’t need to fill his top of funnel with useful content. With that in mind, here are some thoughts on what to expect in 2025 across a broad spectrum of CX technology and strategy topics.

Community.

Community will continue to be a much talked about concept. I’m still 100% bullish on community as the nucleus of a brand and it providing a plethora of CX opportunities - see the IRL activations that Miranda and I discussed on the podcast, however, 2025 will mark peak run-club and we will see them dying out as a marketing activation. The world doesn’t need or want another founder-led brand using a run club as a spring board for their new activewear-cum-supplement company and personal TikTok strategy. So what do I think will replace them? Swim clubs, games clubs (e.g. puzzles), book clubs, listening clubs (in conjunction with the rise of listening bars), tea (not coffee) clubs and LARPing clubs. The latter is particularly interesting given the rise of medieval-core; which might actually be my biggest 2025 trend prediction.

CX Platforms

I’ve been thinking a lot about commerce platforms. They’re not typically seen as a CX tool. Rather, it’s the subscription or reviews or personalisation engine that sits on top of them that is seen as the ‘CX’. I think this is going to change in 2025. Platforms like Shopify are bringing more and more traditional CX functionality & capability into the core platform (e.g. Search & Discovery, Shopify Inbox etc). The way I see it, the commerce engine will become the CX foundation, and the tech that sits on top of it (many of which are now becoming platform in nature) will serve to enrich and enhance capability for brands and better experiences for consumers. Thus, we may see commerce platforms rebranding themselves as CX platforms.

There is an interesting paradox in terms of how one chooses this tech as they mature as a business, though. I spoke about it here. Side note - I actually thought that was a really good post but it very little traction compared to me posting selfies and BTS content about Factory. Hmmm. Does this once and for all confirm LinkedIn is in fact business Facebook?

In terms of legacy platforms. I’ve said a zillion times, but Magento and SFCC will not be relevant in 5 years time. And, though it pains me to say it, newer breed platforms might be joining them. They may not become completely obsolete, but consolidated and or rebranded or in a different form to what we know them now. Why? General macro conditions, they’ve either found it hard to gain market share or move beyond the markets that they occupied.

As for the UK market. Shopify will continue to dominate with Centra acting as the other option for mainly fashion brands that want to sit at the vanguard of design and technology (luxury etc). Interestingly, I made a prediction last year that we may see Shopline gain considerable market share. Admittedly, this was predicated on anecdotal evidence of them taking a massive stand adjacent to Shopify at eCommerce Expo in 2023. However, I’m yet to see any material evidence of this prediction and thus we can assume their pitch of ‘Shopify but cheaper’ hasn’t landed.

AI.

Andreessen’s famous essay suggested software is eating the world - I think we can all agree AI is following suit. My perspective on the technology has always remained positively sceptical, but now my stance is starting to change.

2025 will see high Agentic AI adoption. Brands will be deploy internal and external facing agents into their businesses with the hope that they will reduce time or headcount. However, they can’t be left on autopilot for trust and reliability reasons. So there will be high adoption but, I suspect, equally high churn as brands realise agentic AI is no silver bullet.

Agentic-adjacent platforms like Sourcerie will gain traction. They’re a Customer Intelligence Platform and we think of them like an AI CX analyst. The ability to identify a CX opportunity (e.g. customer reviews have suggested you should develop a new flavour) and enable the brand to manage that opportunity from idea to execution is very cool.

Another area that AI will eat is customer service. But not in a bad way, in a very good way. Customer service is one of the best use cases of outward facing agentic AI development. Gorgias are a natural example of CS tech that are at the vanguard of AI features. I was at a talk recently with one of their brands, Wildride. Amber gave us a lengthy case study of how they are using a mixture of internal processes and Gorgias AI to make CS better. Both on basic FAQ tasks to helping customers with real-time CS information. However, an interesting observation was the fact that the team didn’t like consumers knowing it was AI they were talking to. Eg, the name of the CS person is ‘Susan’ not ‘Your AI Helper’. They ran an A/B test that confirmed consumers prefer to talk to a human, or at least think they’re talking to a human. I think this is one of the primary challenges for AI right now - ‘AI trust’. Because there is an inherent scepticism, we introduce a ‘human veil’. But I suspect this will change over time and as we get used to the tech there will be less need to mask it. Or, we just won’t know the difference and won’t care.

Looking forward into 2025, some features I’m excited to see from the Gorgias team are AI to update orders, manage subscriptions, streamline returns, and help brands understand why customers are having issues and what to do about it.

The adoption of AI agents will present a problem: a crowded and confusing market of independent Chatbots (ChatGPT, Claude), AI Agent products (Sintra), AI surfacing tech (Glean) and AI features within existing products (AI customer service feature within an existing customer service technology). The solution: AI literacy and application services, something we’re exploring at Factory.

Personalisation.

Hyper personalisation has been talked about for a while. But I suspect 2025 is when we will set in reality. Of course, much of it will be powered by AI. Or at least claimed to be powered by AI. Regardless, I am optimistic. An example: recommending products based on purchase history, offering loyalty rewards tailored to a customer’s preferences, or even delivering personalised marketing emails with dynamic content. We’ll likely see this extend to customer service, with agents equipped to access a customer’s full history instantly, ensuring smoother, faster resolutions. Which ties nicely to my thoughts on AI above. Although. My warning to brands is balance human with AI when it comes to CS. Don’t completely remove the human!

Omnichannel.

There are attempts to rebrand Omnichannel to ‘unified commerce’. I like the idea and agree that it needs a rebrand. But Jury’s out on whether it will stick. Regardless, very positive about this as a concept. Modern consumer journey’s are long and complex. Social, reviews, website, physical, affiliate, influencer, back to social, mobile to convert. Brands need to create a connected ecosystem where data flows seamlessly across channels and journeys. Examples: synchronised wishlists, mobile payment options that work in-store, better in-store customer identification, better real-time inventory tracking to prevent disappointment, integrated returns processes, the potential of an ACTUAL 360 customer view etc.

Sustainability.

Sustainability will shift from being a differentiator to an expectation. Customers will look for clear proof of a brand’s commitment to the planet, like carbon-neutral shipping or recycling programs or DPP (on that topic, see an excellent article by our mates at Commerce Thinking). They’ll favour companies that empower them to make eco-conscious choices.

However, there are nuanced headwinds. From a macro perspective, the populous movements across the globe are pushing climate (and therefore sustainability) down their agendas. Will Trump really ‘drill baby, drill’? Can any lay person tell you a COP 2024 initiative? Where in the world is Greta Thunberg? Very worrying. Paradoxically, nuclear (very clean energy) is having a renaissance. Kind of optimistic.

At the brand level (where Factory operates) we predict that greenwashing will not be tolerated and we’ll see an increase in companies being ‘quietly B corp’, taking sustainability away from the centre of their brand and turning the focus inward.

For a curve ball, what about Shein? It’s valuation and likely IPO in 2025 would suggest sustainability has dropped in the consumer criteria. However, it’s probably more of a reflection of the wedge between generational low and high income consumers. But maybe it’s a proxy for sustainability in 2025. It must balance growth with sustainability, addressing ethical concerns and regulatory scrutiny while leveraging technology and emerging market expansion to remain competitive in an increasingly conscious and demanding global market. So if Shein goes green - then maybe sustainability is back in favour.

Stock Experience.

This is a topic we’ll be discussing more about on the pod this year. Our prediction is that stock (and the associated technology that manages it) will become a cornerstone of customer experience. Inaccurate stock levels will cause negative NPS and CLTV shifts. Personal example. Per my article about ASCIS’s loyalty programme, I purchased a pair of trainers on December 2nd. Still to receive them. CS team said there was a stock issue that wasn’t communicated on their site. Side note, the CS experience since then has been extremely poor. I’ve been chasing them. Weeks without a reply. Really really poor. Between the stock level and poor CS, they are at risk of loosing me not only as a customer but an advocate of the brand. How does one solve the stock CX issue? A number of ways. Brightpearl’s inventory management feature (and general technology) is a good place to start.

Conversational Commerce & AI Search.

Voice assistants like Alexa and Google Assistant are evolving beyond basic tasks. In 2025, they’ll handle more complex purchasing journeys, from comparing product prices to facilitating seamless reorders. Conversational AI in chatbots will also grow more intuitive and offer more human-like interactions which will reduce friction and make the purchasing process feel effortless, whether a customer is shopping hands-free or resolving a query. Slight caveat. Similar to live shopping, I think conversational commerce only suits particular products. If a consumer needs to think about what they’re buying (eg, they need to immerse themselves in the brand to learn more), then it doesn’t work. Tangential side note. Highly recommend everybody check out Friend if you want a human-like bot experience.

What about AI search as it relates to commerce? Similar to Agentic AI, AI search will gain more traction. Primarily through Perplexity’s AI commerce function. However, I do believe - which I predicted way back in October of 2023 - that we will enter to a new search commercialisation paradox. Most AI tech is subscription, not ad supported. And in this world, how does the tech properly monetise search? PPC, that’s how. So will we will see a convergence of AI search and PPC? Will Perplexity (and the others) introduce an ability for brands to pay to be the first AI search answer? And therefore, not dissimilar to streaming reverting back to traditional live TV experience, will AI search return to a Google style PPC environment?

Subscription & Loyalty.

This is a subject I’ve spoken about at length in 2024, remaining largely sceptical. My scepticism stemming from outdated loyalty programmes. However, I’m bullish on a revamped loyalty / subscription approach in 2025. One that focuses on personalised experiences, ethical alignment, and genuine value beyond discounts. Traditional loyalty programs will evolve into highly tailored ecosystems, offering perks like exclusive content, early access, and flexible rewards that adapt to individual preferences. Sephora is a great example of a brand harnessing traditional Loyalty tiering with a modern incentives and ASICS’s innovating with their Strava-like running app. Trust will play a central role, with customers gravitating toward brands that demonstrate transparency, sustainability, and authentic engagement. Emotional loyalty will eclipse transactional loyalty, with brands fostering deeper connections through community-building, shared values, and proactive communication.

Subscription fatigue is very real. However, they will also play a significant role in retaining loyalty, but only those that offer customisation and tangible benefits, such as pause options or unique member privileges, will thrive. Additionally, social proof will become integral to loyalty, as consumers increasingly rely on peer recommendations and user-generated content. In an era where choice is abundant, loyalty will be earned through trust, shared purpose, and the ability to consistently exceed expectations. Expect subscription, loyalty and personalisation to be synonymous with each other in 2025.

For more subscription and loyalty insights, checkout the Loyalty Lion live event I did last year here.

Mini Me’s.

This is a micro topic. Mini me styling is going to become a bigger trend in 2025, with brands that only do adult wear releasing mini versions - an easy upsell and a smaller investment for the brand by making these ranges limited edition. Rothys and If Only If are two good examples. BUT reduction/further discourse around the ethics of momfluencer culture and posting your kids online will gain traction. This has the potential to become very frowned upon and so this might have an impact on whether ‘twinning’ with your kids is going to last, since less people will be posting about it

TikTok Shop.

As discussed in this highly performative LinkedIn post, I joined TikTok in 2024. Since then, I’ve been immersed and it’s become my go-to social app. So what do I predict?

This has nothing to do with Gary Vee’s bullishness on live shoping, but TikTok Shop will become a cornerstone of social commerce. Its integration of entertaining content with seamless purchasing will blur the lines between inspiration and transaction, making impulse buying effortless. This is an important point. It’s not for every brand. But those that sit in the impulse, high frequency, low price, low shipping cost will win.

However, its success will hinge on addressing trust concerns with robust buyer protections, clear return policies, and transparent seller standards to sustain growth. And where this liability sits (Brand or TikTok) will be one to keep an eye out for.

Finally. TikTok will NOT be banned. Too many people (investors and creators) will be impacted. Maybe it will change to a US Inc. Regardless, we’ll all still be able to see who’s doing 75 soft, medium and hard.

Conclusion.

Phew. That was a lot. But also a lot missing - it’s hard to capture an entire year of insight into 2000 words. So what’s our conclusion?

The landscape of customer experience, social platforms, and consumer behaviour in 2025 will be shaped by a powerful convergence of technology, ethics, and personalisation. Ultimately, winning in 2025 will depend on how well brands anticipate changes in their customer expectations, deliver experiences that resonate with them and adapt to an environment that is moving at lightening speed.

As for our mate, Buffet. I tend to agree. It’s hard to predict the future but hopefully we’ve showed you how we think in an original, entertaining and useful way.

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2025 CX Predictions Report