Below we highlight how financial services (FS), technology, media, and telecommunications (TMT), retail, and utilities are addressing 2026’s customer experience (CX) challenges and opportunities:
In banking and insurance, trust and personalisation define the CX agenda for 2026. Large UK and European banks are heavily investing in AI for customer service, from intelligent chatbots in banking apps to robo-advisors, but they face a dilemma: customers are wary of a pure digital experience. A recent global survey shows a majority of banking customers fear that too much AI could mean losing human interaction and worry about privacy. Therefore, banks are pursuing a “both/and” strategy: increasing automation for everyday transactions (e.g. quick balance inquiries, simple claims) while reassuring customers that humans are available when it truly matters. For example, many banks now offer a “call an agent” button right inside their mobile app or seamless escalation from chatbot to a human advisor for complex queries. Building digital trust is paramount: banks know they must be extremely transparent about AI usage (where it’s used, how decisions are made) and fortify security, any hint of a data breach or AI error can send customers fleeing. They are implementing measures like AI ethics boards and third-party audits of algorithms to ensure compliance with regulations and to be able to say to customers, “we use AI, but we use it responsibly”.
Personalisation in FS goes beyond greeting a customer by name; it involves proactive financial insights. Banks are leveraging customer data to send tailored alerts e.g. nudging a customer if they’re about to overdraft or suggesting a better savings rate based on their patterns. Insurance firms similarly use AI to personalise policy recommendations and risk advice. The omnichannel push is strong here too: a customer might start opening an account online but want to finish in-branch or discuss on the phone, and they expect that any employee they talk to can pick up where they left off. Leading European banks are integrating core systems so that a customer’s context moves with them from digital to face-to-face channels. On the metrics side, financial services companies in 2026 emphasise outcome metrics like customer retention, product holdings per customer, and complaint resolution rates, aligning with regulatory expectations (like the UK Consumer Duty’s focus on good outcomes) and recognising that loyalty and lifetime value are the ultimate goals. The industry also tracks trust indicators (brand trust scores, security incident rates) as key CX metrics, given how critical trust is for retention. Notably, UK banks have shown strong CX performance recently, in the January 2025 UKCSI index, four banks (including Starling Bank and first direct) ranked among the top 10 of all companies in customer satisfaction, suggesting that a blend of convenient digital service and reliable human support is paying off.
In telecom and related tech services, the priority in 2026 is reducing customer effort and preventing churn in an environment where switching providers is easy. Telecom operators across Europe are leaning heavily on AI in customer care, from networks of chatbots to troubleshoot broadband issues, to AI-driven analytics predicting which customers are likely to cancel so they can intervene early. However, telcos are also learning that flashy technology means little if basics falter: customers still frequently cite things like unclear pricing, long wait times, or having to repeat information as reasons for frustration. Thus, many telecom and media companies are focusing on simplifying the customer journey (for example, implementing unified billing systems and one-stop self-service apps for mobile, TV, and internet accounts) and training staff to handle complex issues (like technical faults or billing disputes) with more empathy and authority to actually fix problems. The importance of getting CX right is underscored by financial linkage: customers in telecom/media are among the most likely to cut spending due to poor service, more so than in almost any other sector. Recognising this, some European mobile carriers and broadband providers have even made “customer experience improvement” a top corporate goal with explicit targets like reducing churn by X% or improving NPS by Y points.
A big trend in TMT CX is network quality transparency and proactive communication. Telecoms are using apps and SMS alerts to proactively inform users of outages, maintenance, or service upgrades, often with real-time updates. This level of communication can turn a potentially negative experience (like a network downtime) into a moment that increases trust, customers appreciate being kept in the loop rather than left in the dark. In addition, telecom and tech companies are exploring innovative channels: for instance, some are integrating customer support into messaging platforms (WhatsApp, Facebook Messenger) because many customers find it more convenient. Personalisation plays a role here as well: media providers (like streaming or broadband companies) analyse usage to personalise recommendations or service bundles (e.g., offering a family streaming package if data shows heavy usage). On the metrics front, first-contact resolution and average resolution time are critical operational metrics for telcos, alongside customer satisfaction. Many also measure “customer effort score” in interactions, given the industry’s history of complex IVRs and transfers, lowering customer effort is a key aim in 2026. Finally, with the expansion of fibre broadband and 5G, customer expectations for reliability are sky-high, making technical KPIs like uptime and latency indirectly part of CX measurement (a glitchy service equates to poor CX even if support is great). Telecoms know that as core services commoditise, superior customer experience becomes the differentiator, which is why even tech innovators in this space are doubling down on service quality and not just product specs.
The retail sector (including e-commerce) in the UK and Europe is at the forefront of many CX innovations in 2026, driven by intense competition and changing consumer habits. Omnichannel retail is fully realised: shoppers expect to fluidly shop online and offline, so retailers have merged experiences like never before. “Click-and-collect” (buy online, pick up in store) and “endless aisle” (online ordering for out-of-stock store items) are standard practice now. The differentiator is how smooth and personal these experiences are. Leading retailers use AI to personalise every step: from showing tailored product recommendations online based on browsing history, to equipping store staff with clienteling apps that show a customer’s online wish-list when they walk in. Hyper-personalisation in retail might mean a fashion retailer’s app suggesting a complete outfit because it knows the customer’s style and what they already bought, or a supermarket’s website highlighting deals relevant to a customer’s dietary preferences. Importantly, retailers also integrate feedback loops everywhere, a quick star rating after a delivery, or an in-store satisfaction kiosk, to capture experience feedback in the moment and address issues swiftly (for instance, if several customers report a problem with curbside pickup delays at a location, the manager can be alerted to fix it immediately).
Customer expectations in retail are sky-high and often emotionally charged, a failed delivery or poor store service can lose a customer fast in 2026. On the other hand, great service directly drives revenue, as UKCSI data has shown: customers are willing to spend more for excellent service, and sectors like retail consistently see higher spend from satisfied customers. Therefore, many retailers anchor their strategy on customer experience as a growth driver, not a cost centre. We see a resurgence of well-trained front-line employees in stores, while automation like self-checkout is ubiquitous, retailers are concurrently investing in staff training for when human help is needed. Knowledgeable, friendly associates remain a top factor in customer satisfaction for retail (especially in areas like apparel and electronics), so 2026’s best retailers blend efficient tech (mobile checkout, smart fitting rooms) with human warmth and expertise. Retailers are also paying attention to post-purchase experience as part of CX: hassle-free returns, effective issue resolution, and even community-building (loyalty programs with exclusive experiences) to keep customers engaged after the sale. Metrics in retail CX often blend online and offline indicators, for example, tracking NPS separately for store vs. web, monitoring conversion rates and cart abandonment (as proxies for UX effectiveness), and correlating CX scores with repeat purchase rates. As sustainability becomes a bigger consumer expectation in Europe, some retailers are also measuring and communicating aspects like carbon footprint per delivery or % of sustainable products, connecting these to CX as part of brand trust. In summary, retail CX in 2026 is about convenience, personal connection, and consistency, the brands that succeed are those that make shopping easy and enjoyable wherever the customer engages and turn satisfied customers into loyal advocates.
Utilities companies, providing essential services like electricity, gas, and water, historically haven’t been known for stellar customer experience, but 2026 finds them at a make-or-break point in the UK and Europe. After years of customer frustration (exacerbated by issues like volatile energy prices and service disruptions), utilities have hit record-low satisfaction and thus face intense pressure from regulators and the public to improve. The priority is often getting the basics right: accurate bills, easy ways to report problems, and fast, empathetic resolution of outages or account issues. Many utilities are playing catch-up on digital transformation, finally rolling out user-friendly mobile apps and online portals where customers can do things like submit meter readings, pay bills, or check for outages without having to call. However, a key learning is that automation must be balanced with human support for vulnerable or complex cases. Utilities in the UK are obligated (by Ofgem and Ofwat guidelines) to provide extra care for vulnerable customers, for example, those who are elderly or dependent on powered medical equipment must get priority service and accessible support. So while chatbots and phone IVRs handle common inquiries (e.g., “what’s my latest bill?”), companies ensure that customers can quickly reach a live advisor for more serious issues (e.g., a gas leak report or a billing error causing distress). Training agents in empathy and problem-solving is a focus; utilities are realising that a complaint or outage call is not just a box to tick but an opportunity to rebuild trust if handled well.
Proactive communication is arguably more important in utilities than any other sector: in 2026, leading energy and water firms send out advance notifications of service issues (maintenance outages, supply interruptions) via text, email, or app push notifications, often including updates and expected resolution times. They also use data from smart meters and IoT sensors to spot problems early, for instance, detecting a water leakage trend and alerting the customer or dispatching a crew before it becomes a major incident. Another trend in response to customer pain is simplifying tariffs and communications. Energy companies, for example, are trying to make bills easier to understand and comparison of plans more transparent, after years of feedback that confusing bills erode customer trust. On the metrics side, utilities are closely watched on specifics like average time to resolve a complaint, outage frequency/duration, and customer satisfaction scores. Indeed, being the lowest-ranked sector in UK customer satisfaction surveys has spurred utilities to set concrete targets, e.g., aiming to raise their satisfaction index by a certain number of points. Regulators too might enforce fines or mandates if companies don’t improve service metrics. Best practices highlighted for utilities include establishing a personal connection (making it easy to reach a human agent when needed), better communication during crises, and robust complaint handling processes that fix issues the first time. The utilities that embrace these will start to dig themselves out of the customer satisfaction “rock bottom” they’ve found themselves in, while those that don’t will face not just unhappy customers but also potential regulatory penalties and increased competition (where customers have a choice of providers).
2026’s CX landscape in the UK, Ireland, and Europe’s private sectors is both exciting and challenging. Technology, AI, data analytics, and omnichannel platforms are providing powerful tools to serve customers better, but they require wise implementation, with a constant eye on the human side of service and the trust that underpins it all. Across financial services, TMT, retail, and utilities, one theme is consistent: companies that successfully blend innovation with empathy, and insight with integrity, are set to win the loyalty of customers in 2026 and beyond.
Read more about our customer experience services:
In 2026, CX in the UK, Ireland, and Europe blends AI, personalisation, and trust, balancing automation with human empathy and meeting sector-specific needs.
Read more
Share