Loyalty Isn’t Automated: Why Human Connection Still Defines Retail CX

Retailers have leaned heavily on artificial intelligence and automation to streamline operations and reduce costs. That efficiency is important, but it isn’t enough to earn and keep customer loyalty.

One survey found 70 percent of consumers are willing to leave a brand after just two negative experiences. A harsher reality? Twenty-four percent said they would switch after just one.

In a world where switching costs are low and alternatives are just a click away, even established retailers can lose loyal customers overnight. Customers don’t remember how quickly a bot processed their order; they remember how a brand treated them when something went wrong. That’s why human connection has become the true driver of loyalty.

The Limits of Automation

AI excels at speed and consistency, making it a powerful tool for processing transactions, answering FAQs, and optimizing workflows. However, when customers are upset about a delayed delivery, confused about a return, or worried about fraud, efficiency alone won’t rebuild trust.

Over‑reliance on bots risks creating sterile, impersonal interactions that make customers feel like numbers, not people. In retail, this risk intensifies during high-stakes moments, such as holiday shopping, when customer patience is already low. If automation fails to deliver in those critical interactions, customers often abandon the brand altogether.

When loyalty is built one experience at a time, that’s a risk retailers simply can’t afford.

The Human Advantage in Retail CX

Human agents bring empathy, adaptability, and problem-solving skills that no algorithm can replicate. A national U.S. survey confirms that 93 percent of consumers prefer interacting with a human for customer support, and most say humans resolve issues faster and more accurately than AI.

One well-handled interaction — whether navigating a holiday return or a glitchy product — can convert frustration into loyalty in an instant. That human reassurance can be the difference between a lost customer and a lifelong one. The challenge, of course, is scale. Retailers can’t realistically staff every interaction with a high-EQ agent, especially during periods of high demand.

Gig CX makes the human advantage scalable. Retailers can tap into a flexible, brand-trained workforce that scales up during peak demand and scales back when volumes recede without sacrificing empathy or quality. Beyond coverage, gig CX workers help retailers access specialized skills. They can bring multilingual fluency, cultural awareness, or technical expertise that allow them to meet customers where they are and resolve issues with authenticity.

Arise saw this play out with a major coffee retailer whose e-commerce operations were disrupted by simultaneous service outages — an internet failure at one partner’s contact center, followed by a full website crash that left customers with only voice as a support option. Within minutes, gig agents scaled into both chat and voice queues, eliminating a 90-minute backlog and handling nearly 100 percent of the retailer’s customer interactions that day.

Instead of a brand crisis, customers walked away with confidence that the retailer could support them when it mattered most.

Pairing AI IQ With Human EQ

The future of retail CX is a combination of humans and automation. AI can handle the IQ side of service, such as automating repetitive tasks, surfacing real-time knowledge prompts, or flagging sentiment shifts. Human CX agents deliver the EQ side, such as bringing empathy, reassurance and nuanced judgment.

Together, they create a hybrid model where AI enables efficiency and humans deliver connection. Automation may power the process, but people create the loyalty that keeps customers coming back.

Robert Padron is chief people and experience officer at Arise, a leading intelligent platform for on-demand experiences.