By Jason Compton
It’s a marketing practices conundrum. Consumers want personalization, and they are more likely to buy more and spend more with brands that tailor the experience. On the other hand, consumers are wary of how their data is used, as privacy concerns grow.
In particular, harvesting tactics which acquire data from third-party sources without express consumer consent are an easy target for criticism, and raise questions of quality and accuracy. First-party data, which covers a wide variety of activities including information typed or spoken by the customer, purchase history, social media interaction and app usage data is easier to control, protect and leverage.
To help retailers better harness the power and potential of consumers’ first-party data, leading customer engagement platform Braze worked with Wakefield Research to create the 2025 Retail Customer Engagement Review. The survey polled senior marketing executives across the globe and also includes anonymized, aggregated behavioral data from billions of live user data profiles.
It found that a significant number of retailers are tackling the challenges of effectively collecting and applying first-party data head-on, but others are uncertain how to proceed. Nearly half (47%) of retail respondents expressed concern that their messaging does not resonate with customers.
“There has been so much bottom-line focus in the industry, and hesitancy and reluctance to make longer-term investments in things like better data strategy,” says Brian Laker, senior director of industry marketing at Braze. “As the price of paid media goes up and the cost to acquire [customers]
increases, if you haven’t invested in data and tools to activate that data, you’re making it much more challenging to differentiate yourself as a retailer.”
Below, six key findings from Braze’s landmark survey reveal how retailers can leverage first-party data for future value.
1. Retailers are more likely than those in any other surveyed industry to say they segment customers using information about past behavior or engagement
Modern data-driven personalization owes a great deal to the direct-response, mail order and first-wave e-commerce retailers of the past. Little surprise, then, that retail continues to lead the pack in understanding the value of driving more engagement and transactions through first-party data.
“To drive a successful customer engagement and loyalty program, marketers must really understand where and how each of their shoppers interact with their brand,” says Diana Kim, senior product manager focused on e-commerce efforts at Braze.
2. Retail leads all industries in seeing customer lifetime value as a top KPI for customer engagement
When asked to rank their top customer engagement metrics, more retailers placed customer lifetime value in the top three than any other industry. And a refined approach to personalization can definitely enhance results and future opportunities.
Working with Braze, retailer e.l.f. Beauty revamped its loyalty program communications with personalized offers delivered across channels, which contributed to a 58% increase in redemptions YoY.
Lifetime value is also a key consideration because consumers are themselves very aware of the potential to apply past experiences and present intentions to improve experiences. And it is easier than ever for competitors to pick up on those inclinations and swoop in with a just-in-time offer.
“I can think of myself as a loyal shopper to that retailer, but if they’re not showing any real loyalty to me, I can go get something that really looks and feels very similar, probably cheaper, somewhere else, very quickly,” Laker says.
3. 62% of retailers combine data from different sources into a single customer profile, seven points above the all-industry average
First-party data comes from many sources and streams, and like any data needs to be curated and cleaned for maximum value. Retailers as a group are already ahead of other industries in seeking out this data, but creating a comprehensive shopper profile and knowing how to apply it requires comfort with ever-emerging tech.
While getting a 360-degree view of its customer base prior to engaging with them across different channels is prudent, retailers will likely benefit from doubling down on their efforts to deliver at the level customers expect. In particular, marketers need to be agile and aggressive in finding new channels for personalized communications, and new ways of thinking about moments to communicate outside of a simple activity trigger or a timed blast.
Among emerging channels, Kim recommends the use of content cards and targeted landing pages, which can provide detailed information on a product that is tailored to the interests of the individual customer, rather than being a cookie-cutter stat sheet.
“They can help you capture [mailing] list growth as well as product reviews,” she says. “Reviews are so heavily emphasized now that many consumers won’t buy anything without looking at reviews, so much that without reviews there can be a significant decline in conversion rates for some products.”
4. Customer-provided facts and preferences are the strongest sources of personalization insights for retailers
Ahead even of time-sensitive messaging, respondents in retail businesses show that they recognize the value of personalizing based on the testimony and signals provided directly from customers, ranging from basics like name and birthdate to deeper insights like account activity. Braze customer and confections retailer Crumbl Cookies recently activated customers’ purchase data to power their Crumbl Unboxed year in review campaign–serving each customer an individualized message with their favorites of 2024 alongside their “Crumbl persona.”
The challenge going forward is in safeguarding that data well enough to earn the trust to continue collecting it. Nearly half (46%) of respondents in Braze’s survey reported concerns about whether customers have agreed to have their data used for personalization.
“Consumers have higher expectations than ever when allowing access to their data. They want to know how it will be used and where it is being distributed—and expect to receive a truly personalized experience in return,” Kim says. “A data platform with flexible tooling can unify, activate and distribute your data and meet customers where they are.”
Activities like puzzles and games can help boost both engagement and trust. A style quiz, for example, can elicit information about an individual’s icons and preferences, opening a conversation while also building up valuable first-party data.
”It’s a fun, engaging experience that the customer gets something satisfying from, and [the brand] can use to create more engaging and better experiences going forward,” says Laker. “And that will enable [the brand] to continue to collect more first-party data, and continue to make the experience better!”
5. The use of next-generation analysis is on the rise
A large cohort of respondents said that AI plays a role in their customer data analysis today. Thirty-six percent of surveyed retailers use AI-powered analytics, and the same share use AI-informed data collection tools.
The most aggressive retailers may find a way to double-jump competitors, unlocking more insights from AI analysis while also redirecting marketing professionals to further apply themselves in ways that can’t be handled by an algorithm.
“AI can help automate routine tasks, and free up more time for creative thinking and thinking more critically about strategy,” Kim says.
6. More than 90% of respondents use data and technology to add emotional resonance in communications
Personal milestones, year-in-review journeys, and other achievements can amplify the connection between consumers and brands. Retailers are almost universally onboard, which will serve them well against a backdrop of interactive media increasingly tailored to their precise interests and needs in any given moment.
“A lot of digital 21st century brands have baked in a level of personalization that has changed the level of expectation for everything that’s served to us,” says Laker.
Building and maintaining these personalized journeys takes more than data. Designing the right message and choosing the right channels takes an alignment of technical expertise and marketing strategy. Without vigilant attention to data-driven opportunities, the next organization up will take a shot at crafting the better message to your once-loyal customers.
“Low-cost competitors are popping up, and the next deal is almost always just a swipe away,” Laker says.
But marketing leaders do not have to rush to activate every new option available to them. Focus energies on winning customers over with personalized data, and there will be far less need to win them back.
“You can increase the sophistication of your engagement strategies at your own pace, whether adding emerging channels like WhatsApp or increasing personalization through AI,” says Kim. “Marketers should collaborate closely with their development teams to prioritize quick wins and longer tail goals, but it will all come down to assessing if you have the right technologies in place to understand your shopper journey.”
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