Retail and Consumer Packaged Goods (CPG) brands stand at a pivotal moment. In today’s experience-first economy, a quality product alone no longer guarantees loyalty. Consumers expect phygital journeys – blending the best of physical and digital, responding in real-time and reflecting their identity and values.

This shift from product-centric to experience-led engagement is re-defining the industry. To remain competitive, companies must re-imagine the customer journey as a continuum of meaningful, connected interactions, not just a series of transactions.

The future of retail and CPG lies in experience-driven commerce – a model where digital innovation, physical presence and consumer insight converge to create lasting impact. Data underscores this shift: McKinsey finds that companies leading in Customer Experience (CX) grow revenues 5-10 percent faster than peers and enjoy significantly stronger loyalty. Experience has become the ultimate differentiator.

Key Trends Shaping the Experience Economy

Several forces are accelerating this transformation:

• Omni-channel Behavior

  73 percent of consumers engage across multiple channels before making a purchase.

• Demand for Personalization

  80 percent are more likely to buy from brands that offer tailored experiences.

• Sustainability-driven Choices

  66 percent factor in ethical and environmental considerations.

• Data Trust and Transparency

  74 percent trust brands more when their data is handled responsibly.

• Authenticity and Shared Values

  Younger consumers expect brands to embody cultural and social relevance.

• Immersive Tech Adoption

  Augmented Reality (AR), Virtual Reality (VR) and digital try-ons are re-shaping product discovery and engagement.

For CPG brands, this means telling richer, lifestyle-centric stories. For retailers, it means unifying digital, in-store, and mobile touchpoints into frictionless journeys.

Leading Brands Living the Future

Pioneering organizations are already bringing this vision to life.

• Nike’s House of Innovation

  Fuses physical and digital with immersive displays, mobile checkout and personalized services

• Sephora’s Virtual Artist

  Allows digital makeup try-ons, encouraging extensive and shareable product exploration while also bridging the gap between discovery and purchase decisions

• Grocery chain H-E-B

  Uses a strategy of digital storytelling through its in-store Loop platform and consistent investments in community and sustainability programs. This approach has strengthened trust, and earned H-E-B the No.1 ranking in Forbes’ consumer survey on America’s Best Brands for Social Impact 2025

Each example highlights how technology, data and human-centered design are re-defining brand-consumer relationships.

How Digital-led Domain Partners Power Experience-driven Commerce

As experience-driven commerce shifts from being a differentiator to a critical foundation for growth, retail and CPG leaders are turning to digital-led domain specialists to operationalize and scale experience-driven commerce with integrated, outcome-focused solutions. Combining industry expertise with advanced technologies, these strategic partners are delivering:

1. Omni-channel Data Integration & Analytics

   Unifying data across channels – retail stores, e-commerce, apps and social media – to deliver a 360° customer view and seamless, hyperpersonalized engagement

2. AI-powered Personalization

   Leveraging AI engines to dynamically tailor content, promotions and recommendations to increase conversions and lifetime value

3. AI-powered Personalization

   Leveraging AI engines to dynamically tailor content, promotions and recommendations to increase conversions and lifetime value

4. Supply Chain & Fulfilment Optimization

   Using predictive analytics on inventory and logistics to drive cost-efficient, on-time fulfilment across every channel

5. CX Management Platforms

   Enabling proactive support and frictionless interactions with Artificial Intelligence (AI) chatbots, sentiment analysis and timely insights

6. Sustainability & Compliance Enablement

   Embedding Environment, Social and Governance (ESG) principles into operations and reporting to ensure compliance and support long-term value creation

Realizing Tangible Business Outcomes

Our experience over multiple projects in this sector has demonstrated that strategic partnerships drive measurable, scalable results, including:

• Over 5-15 percent revenue growth through AI-led targeting and hyperpersonalization; in one instance, we enabled a leading retailer to drive USD 478 Million in incremental revenue using advanced campaign optimization

• Reduced cart abandonment – typically over 70 percent – using predictive models, thereby increasing average order value by 8-10 percent

• 40 percent reduction in time-to-market, enabling clients to re-imagine omni-channel service, strengthen loyalty and optimize working capital

• >8 percent marketing ROI from advanced analytics-driven outcomes and budget re-allocation

• >10X campaign ROI through effective segmentation

• Up to 12 percent procurement savings and 50 percent reduction in cost-to-serve with intelligent automation

• Scalable ESG integration, automating Scope 1-3 emissions reporting across multiple global standards

The Future of Commerce Is Here

Experience-led, phygital commerce is not a passing trend but a structural evolution re-shaping the rules of engagement. Success will depend on delivering connected, authentic, technology-enabled experiences that resonate deeply with modern consumers. Organizations that harness domain expertise combined with digital-first capabilities will be best positioned to drive tangible results and long-term growth.

With deep domain expertise, digital-first capabilities and commitment to measurable outcomes, WNS empowers brands to design smarter businesses - AI Powered. Human Led. Talk to our retail and CPG experts today to explore how your enterprise can accelerate experience-driven commerce and unlock sustainable competitive advantage.