6 retail marketing trends to watch in 2025

With 2024 over one should look at the future and plan for the goals ahead. While most retailers will simply repeat what they've done in 2024, we invite you to be more innovative with your marketing and both learn from 2024 and change in 2025. The best changes usually come from adapting to ongoing trends, especially if while adapting you manage to keep your core concept intact. With that in mind, we've decided to provide you with a list of 6 retail marketing trends to watch in 2025 and only incorporate the ones that suit your brand.

Our pick of retail marketing trends to watch in 2025

Before we get into specific trends, it is important to note that the retail industry is undergoing an evolution. If we look back, we can see signs of this evolution. The advancements in technology, the changing consumer preferences, emerging global trends... All these can be seen as individual changes that don't have that much of an impact on retail as a whole. But, if considered together, it is easy to understand why we are experiencing a full-fledged evolution in retail and why it is vital for retailers to evolve with it.

To help our retailers in 2025 we will outline 6 different trends that will shape the evolution. By adhering to these trends you should be ahead of the curve when it comes to customer expectations.

Hyper-personalized customer experiences

Let's start off with a trend that will likely dominate 2025,  personalization. If you have any experience in marketing, this should hardly come as a surprise, as the rise of personalization has been steady and upward for years. With big data, artificial intelligence (AI), and machine learning, retailers can look to offer tailored shopping experiences that cater to individual preferences, behaviors, and needs. Mind you, while before this was seen as a luxury that only big retailers could afford, it is slowly becoming a need.

Customers increasingly expect a high level of personalization, be it on apps or websites. Studies show that 80% of customers believe it’s appropriate for brands to collect purchase history to improve personalization. And another study has shown that 64% of customers expect enhanced personalization when they spend more money. Even with these numbers, it is easy to see that the majority of customers expect brands to cater to their needs on a personal level.

Implementation tips

There are a couple of things you need to do to properly incorporate personalization. Firstly, your best bet is to invest in AI-powered CRM systems that integrate customer data across all touchpoints. Even with a single touchpoint, the amount of data you need to gather for personalization can become enormous. And if you add the necessary analytics, you'll soon see why without AI personalization is essentially impossible. So, look for a CRM system that uses an AI suited for your retail needs.

Once you do that, you will be well on your way to using predictive analytics to anticipate customer needs and proactively offer solutions. Another piece of advice is to ensure data transparency and safety. While we will see a rise in personalization in 2025, we will also see a rise in the misuse of customer data. This is why younger generations are so concerned about how and why retailers gather and keep their data. Familiarize yourself with the relevant data privacy laws and ensure that your data management is as transparent as possible.

Customized personalization

It is worthwhile to remember that personalization doesn’t end with product recommendations. All content can be personalized. Some retailers are now exploring location-based marketing, where customers receive personalized offers or notifications when they’re near a store. Loyalty programs are also becoming more dynamic, rewarding customers with personalized discounts or early access to new products based on their shopping history. It is in your best interest to carefully consider both your brand and your customer needs and look where personalization will have the biggest impact.

Omnichannel integration

Hand in hand with personalization comes the expectancy of a seamless customer journey through multiple platforms. Shoppers expect consistent experiences across all channels, whether they’re browsing online, visiting a physical store, or using a mobile app. Omnichannel strategies ensure that every touchpoint works together to enhance convenience and satisfaction. Furthermore, they ensure that transitioning from one platform to another is seamless and that the user never has to take unnecessary steps.

Building an omnichannel experience

Ideally, retailers would build the omnichannel experience from the ground up. After all, it is far more efficient to connect multiple channels if you know what they are and how a customer will go from one to the other. But, even if you haven't built your online presence with omnichannel functionality in mind, there are steps you can take to improve it.

• Invest in centralized systems that integrate inventory, sales, and customer data.
• Implement mobile-friendly designs to enhance accessibility and usability.
• Allow customers to buy online and pick up in-store.
• Maintaining uniform messaging, visuals, and experiences across all channels.
• Train staff to provide a cohesive experience regardless of channel.
• Regularly evaluate customer feedback to identify and address pain points.

It is fair to say that while omnichannel integration offers significant benefits, it requires substantial investment in technology and training. Retailers must also address logistical issues, such as ensuring accurate inventory management across channels.

Sustainability and ethical practices

Data safety isn't the only concern modern customers have when it comes to retail. Another quite important concern that you'd be smart to address is sustainability. For all intentions and purposes, in 2025 sustainability will no longer be an option but a necessity. Modern consumers, particularly Millennials and Gen Z, prioritize brands that align with their values. Therefore, retailers focusing on sustainability and ethical practices not only attract conscious consumers but also make themselves stand out.

Make your brand more sustainable

The first thing to do when it comes to sustainability is to banish the old way of thinking. Claiming that "Out of every dollar earned we give 5 cents to rainforests" doesn't make you sustainable or environmentally friendly. For a company that can truly claim to be sustainable, you really need to go out of your way to achieve certain standards. These include:‍

• ‍Eco-friendly packaging: Transitioning to biodegradable and reusable packaging options.‍
• Carbon neutrality: Brands committing to offset carbon emissions through renewable energy and conservation projects.‍
• Ethical sourcing: Ensuring supply chain transparency and adherence to fair labor practices.

In addition to environmental efforts, social sustainability is gaining traction. Retailers are implementing diversity, equity, and inclusion (DEI) initiatives and partnering with communities to create a positive impact. These efforts resonate deeply with socially conscious consumers.

Augmented reality (AR) and virtual reality (VR) shopping

While there will always be those who prefer to do their shopping in person, more and more people are enjoying the benefits of online shopping. As a result, retailers are always on the lookout for unique ways to engage their audience. One such way is shoppable videos, where customers can make their purchases withing the video they are viewing. Another is through immersive technologies that we feel will redefine the shopping experience in 2025. Namely, AR and VR enable customers to engage with products in unique ways, from virtually trying on clothes to exploring a fully immersive store environment. These technologies not only enhance the customer experience but also reduce return rates by allowing shoppers to make more informed decisions.

A great example of this is IKEA’s AR app, IKEA Place. It allows customers to visualize furniture in their homes using a smartphone, helping them make confident purchasing decisions.

Implementation tips

If you feel that your store could benefit from an AR/VR app, we suggest that you take the necessary steps. Firstly, partner with a tech provider to develop AR/VR applications tailored to your product line. Once you craft an engaging AR/VR experience, look to incorporate gamified elements to engage users and incentivize interaction. Test your system on multiple devices and ensure that everything works perfectly before you ship it to the public. Once you do, make sure to promote these features in marketing campaigns to attract tech-savvy customers. While having an AR/VR cannot carry your entire marketing, it can provide a significant boost for a period of time. And if your AR/VR experience is well crafted, you will see your tech-savvy customers returning to you.

Beyond the app

While not as widespread as personalization AR/VR technologies are becoming more and more prevalent. Retailers are now integrating AR into social media platforms, allowing users to try on products directly through apps like Instagram and Snapchat. In addition, advancements in VR technology are enabling multi-user environments where shoppers can interact with friends or sales associates in real-time. So, while we don't expect that 2025 will bring us retailers that sell solely AR/VR, we do expect a steady rise in popularity.

AI-Driven customer service

Customer service has sure come a long way in the past 20 years. In the early 2000's you could get away with a FAQ page, an email service, and an agent or two. Nowadays, retailers need to have a 24/7 instant response customer service that will sufficiently answer customer needs. Saying AI is changing customer service and shopping convenience is an understatement. On the one hand, we have a customer base that expects instant answers to their concerns. While a FAQ page could have been serviceable 10 years ago, now people can't be bothered to scroll for answers. Instead, they need someone to respond to their needs instantly. Luckily, this is where AI-powered chatbots stepped in.

AI chatbots handle inquiries and provide solutions round-the-clock. This 24/7 support is something that customers have grown used to. If you don't have it, it will be seen as an oversight on your part. A well-developed CRM AI tool knows how to learn user preferences to deliver tailored recommendations.

Implementation tips

If you don't have much experience with customer management in retail, find someone who does. While it may seem simple to get a CRM chatbot, it won't be the best course of action. The way you treat your customers will reflect your brand. And a generic CRM chatbot will be just that, standard. So, look for a way to build your own chatbot that will know how to engage with customers properly. Know that a good chatbot will not only calm a concerned customer but also help retain them and push them to repeat purchases. A good chatbot is one of the best brand advocates you can have. So, consider creating your own.

Future developments

As of writing this article, AI chatbots are powerful but yet limited. From 2025 onward we expect to see further development of chatbots that will be more natural and helpful in their conversation. They will be able to handle more complex queries and support multiple languages, making them indispensable for global retailers. Along with this, we have voice recognition development, where people will have full-on conversations with your chatbot. So, the line between a CRM chatbot and an AI sales agent is becoming blurrier and blurrier.

Social commerce expansion

The last of our marketing trends to watch in 2025 is social commerce. Namely, if a retailer wants to make it in the modern market, it is important to recognize that social media is becoming a primary retail channel. Platforms like Instagram, TikTok, and Pinterest now offer integrated shopping features, making it easier for consumers to purchase products without leaving the app. Keep in mind that social media is drastically changing the shopping habits of customers. So, you'd be smart to not only adopt social media in your e-commerce but also orient the rest of your online presence accordingly.

How to leverage social commerce

There is much to be said about leveraging social media for e-commerce, so we won't go into much depth here. The main tip to keep in mind is that you need to invest in high-quality visuals and storytelling to drive engagement. Generic marketing content won't cut it in modern social media no matter how much of it you put out. Instead, it is best to understand your brand voice and value quality over quantity.

Whatever content strategy you go for, we always suggest that you use analytics tools to track performance and refine it. While having a feel for your content is important, having some clear metrics to keep track of is invaluable. So, learn the basics of marketing analytics and see whether you can set up a decent system. Also, look for ways to leverage UGC. Creating a sense of community and trust among potential buyers is one of the best ways to improve your e-commerce in 2025.

Final thoughts

The retail industry in 2025 will be shaped by technology, sustainability, and consumer-centric strategies. Retailers who embrace hyper-personalization, adopt ethical practices, integrate immersive technologies, and build seamless omnichannel experiences will thrive in this evolving landscape. And those who know how to weave their brand message into their e-commerce will build something lasting. If you manage to stay ahead of these trends and continuously innovate you will not only secure your customer base but also be one of the retailers that grow and develop.

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