The retail landscape is evolving at an unprecedented pace, and a recent survey of global retail executives reveals three critical engagement trends that leaders must embrace to meet rising customer expectations and tackle new challenges head-on.

1. Using customer data more efficiently in personalisation

Retailers are not just vying against each other; they are in a fierce battle for consumer attention and loyalty. A staggering 61 per cent of shoppers now demand seamless communication across all channels – a 5 per cent increase from last year. This shift underscores the urgency for retailers to enhance their personalisation strategies.

To cultivate lasting relationships, retailers must leverage customer data more efficiently. With 36 per cent utilising AI-powered analytics and 62 per cent integrating data into a single customer profile, the potential for personalised engagement is immense. Retailers are already adept at segmentation, but there’s still room for improvement. A dynamic approach to real-time engagement can elevate the customer experience, ensuring that communications are relevant and timely.

Take Central Retail, for example. This Thai conglomerate successfully migrated its channels and campaigns to a unified platform in just 50 days, sending nearly 98 million messages. This streamlined approach not only enhanced customer insights but also improved overall engagement.

2. Leaning on technology to connect with customers

Technology is a cornerstone of effective customer engagement, and an impressive 91 per cent of retailers are harnessing technology to infuse emotional resonance into their messaging. By personalising communications and highlighting community-focused events, brands can foster a sense of belonging among consumers.

Moreover, retailers who engage customers across multiple channels see significant boosts in retention. For instance, those utilising two channels compared to one experience a 78 per cent increase in 90-day retention rates. While email remains the preferred channel, messaging apps and SMS are rapidly gaining traction.

Retailers must continue to embrace advanced technologies to enhance their customer interactions, ensuring that they meet consumers where they are and deliver messages that resonate on a personal level.

3. Doubling down on experimentation and collaboration

In the fast-paced retail environment, experimentation and collaboration are essential for success. A notable 61 per cent of retail brands regularly experiment with customer engagement strategies, indicating a commitment to innovation. This spirit of experimentation allows retailers to test new ideas and refine their approaches based on real-time feedback.

Collaboration is equally vital. With 78 per cent of retail brands holding monthly cross-functional syncs on customer engagement, the emphasis on teamwork is clear. However, there’s potential for even greater collaboration to break down silos and enhance communication across departments. By aligning marketing, analytics and engineering teams, retailers can create a more cohesive strategy that drives customer engagement.

Conclusion: A bright future for retail engagement

As retailers focus on nurturing long-term customer relationships, the commitment to engagement becomes paramount. While the industry shows promising signs of maturity, there’s still work to be done in personalising experiences and expanding AI adoption. By fostering a culture of experimentation and collaboration, retailers can not only meet but exceed the rapidly evolving expectations of today’s consumers.

In this dynamic landscape, the future of retail engagement is bright for those willing to innovate and adapt. Embrace these trends, and your brand could lead the charge into a new era of customer loyalty and satisfaction.

Dive deeper with the 2025 Retail Customer Engagement report

This article highlighted just a few of the key trends shaping the future of customer engagement in retail. For a more comprehensive view, including data-backed strategies on personalisation, cross-channel communication, AI adoption and collaborative experimentation – download the full 2025 Retail Customer Engagement Review report.

Gain a competitive edge by exploring how today’s top retail brands are adapting to rising consumer expectations, navigating “phygital” journeys, and building long-term loyalty through smarter engagement strategies.

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