Retail engagement has evolved – time for your strategy to catch up

Independent

4 days ago

Marigold is a Business Reporter client
To grow customer lifetime value, today's retailers must master AI-powered, data-driven engagement across every channel.
You're a retail or e-commerce marketer focused on what really matters: growing customer lifetime value (LTV). You know that keeping customers engaged is the only way to earn repeat purchases, increase order values and turn one-time buyers into advocates. And you know that AI tools such as predictive product recommendations or audience optimisation can accelerate those goals. But here's the challenge: none of it works if your engagement strategy is stuck in the past.
Today's shoppers move fluidly between channels, from app to inbox to store and back again. They expect every interaction to be relevant, respectful and informed by what you already know about them. That means your marketing can't just be cross-channel in theory. It has to be unified in practice.
Here are three key plays every forward-thinking retailer should have in their playbook, powered by real consumer data and practical, AI-enabled strategies to help you modernise your engagement and grow LTV in 2025 and beyond.
Play #1: Unified data = unified experiences
Insight from the Consumer Trends Index: Nearly one-quarter (24 per cent) of consumers say that a consistent digital experience across a brand's website and mobile app is more important than price when making a purchase decision.
Shoppers expect your brand to know them, whether they click through from an email, tap on a mobile app or walk into a store. But that level of consistency is impossible without connected systems. When your data lives in silos, your customer experience does too.
The Consumer Trends Index shows how varied channel preferences really are. Email continues to lead, with 54 per cent of consumers making a purchase through that channel in the past year. But dig into the age data, and the picture shifts: 57 per cent of 25- to 34-year-olds made a purchase from a social media post. The takeaway? Channel preferences differ by audience.
This means it's not enough to just show up across channels. You have to connect them to each individual's preferences. Unified data lets you build real-time profiles and deliver experiences that feel seamless and personal, not disjointed or repetitive. That's the foundation of modern engagement and long-term growth.
Key to success: Break down your data silos. Align your teams and tools to deliver one connected experience, no matter where the customer appears.
Play #2: Earn trust through privacy-first personalisation
Insight from the Consumer Trends Index: 73 per cent of consumers react positively to product recommendations based on past purchases, but 53 per cent find ads based on third-party cookies invasive. This highlights a preference for personalisation based on data that naturally exists within the brand relationship, such as purchase history or interactions on owned channels.
Privacy isn't just a compliance checkbox. It should be part of your brand experience. Customers want transparency, control and relevance. When brands design with privacy in mind and personalise based on data, it makes sense for them to earn trust and engagement.
With the decline of third-party cookies and stricter regulations, zero- and first-party data are becoming the most reliable, privacy-safe sources of insight. These data types, whether shared intentionally by the customer or captured through direct interaction, help marketers create personalised experiences that feel helpful, not intrusive.
Used responsibly, this data creates a virtuous cycle: transparency builds trust, trust encourages sharing and more data leads to more relevant experiences.
Key to success: Put privacy at the heart of your personalisation strategy. Be transparent, earn trust and turn every data point into a better customer experience.
Insight from the Consumer Trends Index: 79 per cent of consumers say they are likely to engage with personalised emails tailored to their interests.
AI is transforming how marketers connect with customers, making every touchpoint smarter and more effective. Predictive modelling helps forecast outcomes such as purchase intent or churn risk, allowing teams to trigger personalised journeys, update segments or adjust spend with greater confidence.
It also powers better timing and content decisions. Send-time and subject-line optimisation ensure messages arrive when they're most likely to be opened. At the same time, personalisation engines dynamically surface the right content or product across channels based on behaviour and affinity.
Done well, it's the digital version of your best in-store associate: present, helpful and never intrusive.
Key to success: Use AI to enhance, not replace, the human element. Let technology power the timing, while your brand voice delivers the message.
The future of retail engagement is smarter, not more complex. It's not rocket science, but it does require diligence. You need to do the groundwork and connect your data. Only then can you deliver the meaningful engagement that today's customers expect. That includes personalising with purpose, respecting privacy at every touchpoint and using AI to act with precision.
When you connect the dots behind the scenes, you create seamless, relevant experiences that deepen relationships and grow long-term value.