Tag: Mean Business

  • Why the Second Sale Matters More than the First

    Why the Second Sale Matters More than the First

    The first purchase is cause for celebration, but it’s the second sale that really matters. That’s when a shopper starts to bring real opportunity for your brand to grow. It marks the moment when curiosity turns into commitment. For ecommerce brands navigating a competitive market, that second purchase is more than just another transaction — it’s the start of a relationship. And relationships are what helps brands thrive.

    We found that after a customer makes their first purchase, there’s roughly a 30% chance they’ll make another. Not bad, but not a guarantee by any means. But once they do return and buy again, the likelihood of further purchases increases significantly. That second sale is the behavioral turning point — and smart brands are learning to optimize for it. This is particularly important as the cost of acquiring new customers continues to climb, which also means the pressure to retain and re-engage existing ones is growing.

    The good news is that there are proven ways to boost the odds. One of the strongest levers is a loyalty program. Customers who are part of a loyalty program are 47% more likely to return for a second purchase compared to those who aren’t. That’s not a marginal gain — it’s a huge driver of revenue.

    And it’s not just about returning either. Loyalty program members tend to spend more when they come back. Those who redeem points spend 2.5X more than non-members. That means programs aren’t just improving retention — they’re growing customer lifetime value too.

    The Key to an Effective Loyalty Program

    But not all loyalty strategies are created equal. The most effective ones are built around personalization and consistent engagement. And, crucially, they don’t wait until a customer disappears before making an attempt to bring them back.

    The post-purchase window is a key moment to act. The thank you email, the follow-up suggestion, the invitation to review or refer — all of these can make a difference. In fact, post-purchase emails have been shown to increase revenue by as much as 30%. They’re often overlooked, but they shouldn’t be. This is the time when a shopper is most engaged and most receptive. It’s the best chance to strike up a deeper connection.

    Glow Recipe’s viral products make retaining customers following that first shopping session essential. To encourage repeat purchases, new members receive a gift of coveted samples — claimable only on their second order.

    Loyalty is Built, not Given

    A lot of brands fall into the trap of thinking loyalty is something you reward. But in practice, loyalty is something you build, and brands that get it right know it can take time. It’s not about giving away discounts or freebies to anyone with an email address. It’s about showing that you understand what your customers value and giving them a reason to return.

    Origin Coffee deepens emotional relationships with customers through sustainability-driven rewards and charitable donation options — because that’s what their customers care about. Others might focus on exclusive access (like the Amy Myers MD Insider Pass, which is responsible for almost half of that brand’s revenue), early product drops, personalized offers, or just making the experience feel seamless and appreciated. For example, 58% of Esmi Skin Minerals’ customer base is a member of their program — because it’s the best place to be.

    And the great news is that these rewards don’t cost brands their margins; the focus on experiential rewards means they give customers what they value, without giving away too much for free.

    Looking Beyond the Basics to Build Loyalty

    As customer expectations continue to rise, the basics aren’t enough. People want to feel known and heard. They want to feel that their loyalty is worth something — or they will just go elsewhere, and then you’ll have a harder job of winning them back.

    Indeed, our new research shows that if you don’t have a great loyalty program, chances are your competitors do. The days of generic campaigns and one-size-fits-all incentives are numbered. The future of loyalty is smart, subtle and integrated into the customer journey in a way that feels natural rather than forced.

    This is where ecommerce brands — from indie shops to global retailers — need to focus. Not on flooding inboxes or chasing conversions at any cost, but on creating a rhythm of communication and care that brings people back. That means using the data you have to craft better touch points. Understanding who your onetime buyers are, what brought them in, what they responded to and what might tempt them again.

    It also means being proactive. Waiting three months to chase a second purchase is too late. The opportunity is in the days and weeks immediately following that first sale. We know that consumers have a short attention span, so you’ve got to get in there fast. It’s when customers are most likely to still remember how they felt opening your package or browsing your site. That’s when loyalty takes root — so it’s the best time to prompt them to enroll in your program. Even if they’ve completed their first order by then, you can always backdate points, a gesture that makes them feel special from the start.

    Retention is a Year-Round Game

    Retail margins are tight, and every repeat customer is more valuable than ever. The brands winning in this climate are those that understand retention isn’t something you think about once a year when planning your CRM calendar. It’s a daily discipline, and mastering the second purchase to lock in loyalty is the cornerstone of that strategy.

    So rather than celebrating that first conversion and moving on, take a moment to think about what comes next. Is the experience compelling enough to make someone return? Is there a clear, enticing reason for them to re-engage? Are you rewarding loyalty in a way that feels meaningful, not just transactional?

    Because in the end, the second sale isn’t just another order. It’s a signal. A sign that someone has seen enough to come back. And when they do, it opens the door to a longer-term relationship — one where value flows both ways.


    Charlie Casey is the CEO and Co-founder of LoyaltyLion, a top-rated global loyalty platform. Thousands of Shopify brands use LoyaltyLion to accelerate growth by turning more one-time shoppers into returning customers. Prior to founding LoyaltyLion, Casey joined the Foreign and Commonwealth Office as an Economics Advisor before becoming a consultant at Deloitte.

  • The Constant MarTech Evolution That’s Transforming All Of Modern Marketing

    The Constant MarTech Evolution That’s Transforming All Of Modern Marketing

    Martech tools have quietly reshaped how brands engage with audiences, build customer journeys, and manage campaigns. Subtle yet powerful shifts in technology, data usage, and personalization strategies have gone largely unnoticed by those outside the industry. While classic marketing fundamentals still matter, this quiet revolution reveals that martech and marketing are now inseparable, creating a landscape where subtle improvements produce major transformations.

    Recognizing Hidden Shifts Reshaping Marketing Strategies

    Martech’s impact often unfolds behind the scenes, slipping into workflows without demanding immediate attention. These enhancements remain low-key yet consistently drive better results for forward-thinking brands.

    Marketers might only sense the changes through faster turnaround times or crisper customer insights. Traditional methods appear to function as usual, but the underlying mechanisms differ greatly. With the seamless adoption of martech and marketing solutions, businesses gradually replace conventional strategies with technology-driven approaches that drastically improve efficiency.

    Gradual Evolution Rather Than Disruption

    Although some technologies create waves upon arrival, martech’s development usually happens incrementally. Below are the key reasons it remains nearly invisible:

    • Continuous Upgrades:

    Martech providers roll out small updates that blend into existing platforms. Marketers see new features but rarely pause to measure their cumulative impact.

    • Adaptive Tools:

    Solutions such as marketing automation platforms evolve to mirror user behaviors, adopting interfaces that feel familiar while actually pioneering new ways to work.

    • Minimal Downtime:

    Quiet updates prevent abrupt shifts and outages, allowing martech and marketing processes to integrate with negligible operational disturbance.

    Unseen Market Influences Guiding Today’s Tech Innovations

    Martech’s subtle transformation stems from various forces that shape its growth behind the scenes. Over time, these factors refine the synergy between martech and marketing in far-reaching ways:

    • Consumer Expectations:

    Shoppers expect swift, tailored interactions across multiple channels. This unspoken demand compels marketers to strengthen their data analysis and tech capabilities.

    • Regulatory Changes:

    Evolving data privacy laws and compliance standards push technology providers to refine systems, resulting in more secure solutions that quietly elevate marketing trustworthiness.

    • Industry Collaboration:

    Vendors form partnerships or mergers, consolidating best practices. These collaborations lead to richer, more user-friendly platforms without massive public announcements.

    Marketing Technology News: MarTech Interview with Lee McCance, Chief Product Officer @ Adverity

    How Intelligent Tools Fuel Marketing Without Making Noise?

    Artificial intelligence and automation power many “invisible” improvements in martech and marketing campaigns. These technologies quietly refine processes in the background, leaving marketers to enjoy more accurate segmentation and better audience targeting.

    AI algorithms analyze consumer behaviors, anticipate preferences, and tailor messages that resonate deeply with potential customers. Automated workflows further expedite content distribution and lead management. By coordinating these technologies, brands sharpen their marketing impact while preserving their teams’ creative bandwidth. AI-based predictive analytics operate inconspicuously, gathering granular data that informs marketing teams about which strategies deserve investment.

    Fading Legacy Practices and the Emergence of Subtle Tech Upgrades

    Some might argue that traditional marketing still exists. However, the slow infiltration of martech and marketing tools renders outdated techniques progressively obsolete. Advertisements that once relied on guesswork or broad demographic targets now leverage high-level personalization and real-time analytics.

    Brands not adapting risk losing market share to competitors who interpret consumer data more accurately and address buyer pain points faster. This shift happens without explosive fanfare; older marketing tactics simply fade away while businesses favor the precision and convenience provided by automated processes and data-driven insights.

    Driving Engagement Behind the Scenes

    Martech’s seamless integration into daily marketing activities also subtlely affects consumer perceptions. While users may suspect ads are personalized, they typically remain unaware of the invisible technology steering these encounters.

    • Hyper-Personalized Messaging:

    AI-driven segmentation tailors campaigns to individual interests, quietly replacing irrelevant promotions with offers more aligned with user intent.

    • Predictive Targeting:

    Data analysis pinpoints when and where customers are most receptive. This behind-the-scenes process boosts relevance and lifts conversion rates without appearing invasive.

    • Cross-Channel Fluidity:

    Martech integrates social media, email, and website analytics, creating consistent brand experiences that guide buyers through well-timed nudges and recommendations.

    Unnoticed Adjustments to Martech Stacks and Workflows

    Continuous tweaks to martech stacks produce cost savings, align campaigns, and unify multichannel reporting. Marketers typically adopt small enhancements, never fully realizing how drastically these adjustments improve outcomes.

    Refinements to databases, customer relationship management platforms, and analytics dashboards happen quietly. Over time, small optimizations accumulate into seamless processes that elevate martech and marketing performance. As workflow automation handles repetitive tasks, marketing teams focus on strategy, creative direction, and meaningful client interactions.

    Conclusion

    Martech will continue maturing, driven by consumer demands and technological advancements that often emerge under the radar. Marketers intent on remaining competitive must track emerging innovations and invest in ongoing training. By embracing data governance, machine learning, and AI ethics, forward-thinking teams will keep pace with the gradual shifts reshaping martech and marketing.

    Marketing Technology News: Breaking Down The Marketing Technology Industry Size Across Key Global Regions: 2025 Trends and Insights

  • Forget About Gen Z — Overlooked Gen X Spends the Most, and will Through 2033

    Forget About Gen Z — Overlooked Gen X Spends the Most, and will Through 2033

    As brands court Gen Z, they may be missing out on a significant opportunity — Gen X. New research from NielsenIQ (NIQ) and World Data Lab (WDL) finds that Generation X — consumers born between 1965 and 1980 — is the most influential and overlooked consumer cohort of the next decade

    Despite being smaller in size than the two generations that follow it — millennials and Gen Z — the report predicts that if it were a country, Gen X would form the world’s second-largest consumer market in 2025, second only to the U.S. and roughly twice the size of China’s total spending.

    In fact, Gen Xers (aged 45 to 60) have been in their peak spending years since 2021, and will continue as the world’s highest-spending cohort until 2033. This group of consumers will spend $15.2 trillion in 2025 alone. By 2035, their annual spend will peak at $23 trillion.

    In the next five years, Gen X is projected to increase spending across three categories in particular:

    1. Food and non-alcoholic beverages (+$507 billion);
    2. Beauty (+$80B); and
    3. Beverage alcohol (+$42B).

    “Gen X is at the center of a major economic shift — driving spending across categories while managing the demands of multiple generations,” said Marta Cyhan-Bowles, Chief Communications Officer and Head of Global Marketing COE at NIQ in a statement. “The data is clear — Gen X’s influence is profound and far too frequently overlooked by brands. This cohort will continue to shape the future of the global consumer economy for years to come.”

    Of course, like any generation, Gen X’s behaviors and needs are nuanced, highlighting the need for brands and retailers to examine regional and local data to maximize incrementality from this cohort. Here are some things to know about Gen X:

    Gen X Prefers Name Brands Over Private Label

    Contrary to their younger peers, who have been flocking toward private label in recent years, nearly three-quarters (72%) of Gen X respondents said they usually buy name-brand products from familiar national or international manufacturers rather than store-branded items.

    Gen X is (Don’t Look Surprised) Tech-Savvy

    While the young often get a good laugh out of older generations’ tech incompetency, Gen X is in fact comprised of tech-savvy decision-makers who embrace omnichannel shopping, even in its newest forms.

    The proof: 35% of Gen X respondents allow smart devices to automatically order new products; 39% accept product recommendations from an AI assistant; and 40% leverage AI to automate and speed up daily tasks.

    And while 58% of Gen X respondents did say that they avoid sharing details in virtual interactions because they don’t trust AI data privacy, more than one-third said they are likely to purchase a product or service they have experienced solely through an augmented or virtual reality platform.

    Gen X Influences Purchases Across Generations

    Often called “the sandwich generation,” Gen Xers influence the purchasing of both their parents and their dependent children. In fact, Gen X women control a whopping 50% of global consumer spend and influence 70%–80% of household purchasing decisions.

    “Gen Xers are the gatekeepers of trillions in spending, effectively serving as the CFOs of three generations — their own, their children’s and their parents’,” said Wolfgang Fengler, Co-founder and CEO of World Data Lab. “Brands and retailers that invest in them today will see measurable growth and long-term return on investment.”

    Learn more about the spending habits and preferences of Gen X, including how their behaviors differ in high-income and emerging markets, in the full report from NIQ and WDL — “The X Factor: How Generation X is Quietly Driving Trillions in Consumer Spending.”

  • Guitar Center Aims to Turn Stores into ‘Tech-Powered Music Hubs’ with New AI Assistant

    Guitar Center Aims to Turn Stores into ‘Tech-Powered Music Hubs’ with New AI Assistant

    Guitar Center has launched an AI-powered shopping assistant, available not online, but rather on the store floor. The mobile-based Rig Advisor is designed to give musicians an easy way to navigate store options and make more confident decisions, whether they’re browsing solo or working with a store expert.

    The goal is to transform music retail into a more inspiring and intuitive experience, whether a customer is just getting started or building out a professional rig. Customers scan a QR code in store, type in an artist, song, tone or gear-related question, and Rig Advisor delivers instant recommendations based on what’s in stock at that specific location.

    “Rig Advisor is like having a professional gear consultant in the palm of your hand, delivering lightning-fast answers as you explore our music stores,” said Gabe Dalporto, CEO of Guitar Center in a statement. “It will turn our stores into tech-powered music hubs where creativity, curiosity and inspiration lead the way.”

    Built for musicians at every level, from first-time players to seasoned pros, Rig Advisor offers a streamlined way to explore, compare and understand the products in front of customers. Features include:

    • Artist-inspired tones: Uncover gear and settings inspired by a favorite song or artist using intelligent pedal, amp and tone suggestions;
    • Custom rig and setup planning: Build complete setups for recording, gigging, podcasting and more;
    • Side-by-side comparisons: Compare similar gear to find the best fit;
    • Multilingual support: Rig Advisor automatically responds in the language customers use without the need to adjust settings; and
    • Learn while shopping: Rig Advisor simplifies complex gear concepts such as analog versus digital or tube versus solid-state, turning them into clear, actionable insights.
  • Target Brings Back BTS Personalization Stations at 500 Stores

    Target Brings Back BTS Personalization Stations at 500 Stores

    Target is looking to continue the back-to-school sales momentum with ongoing sales on school essentials and the return of its personalization stations, which let students customize their school and dorm essentials.

    Personalization station events will be held at nearly 500 Target stores across the U.S., double the number of stores that hosted similar events last year. This will include 100 college-focused events on July 26 and 400 school-age-focused personalization events on Aug. 2-3. Students will be able to personalize everything from backpacks and lunchboxes to towels and pillows with embroidery, patches and more, as well as get free giveaways of shoelace kits, school-themed patches and monogrammed bath wraps.

    The retailer also is hosting a second savings event from July 27-Aug. 2, following on its promotion in early July timed to coincide with Prime Day. The “Back-to-School-idays” event will feature discounts of up to 30% on key school items.

    “Getting ready for a new school year should be an exciting time for families. That’s why I’m proud of the way the Target team has leaned in to create an experience that’s fun, stylish and affordable,” said Rick Gomez, EVP and Chief Commercial Officer of Target in a statement. “With great deals on essentials, fun personalization events in hundreds of stores and even more savings for Target Circle members, we’re ready to help families everywhere get the new school year off to a great start.”

  • Listen Now: True Religion’s Secret to Winning Over Gen Z

    Listen Now: True Religion’s Secret to Winning Over Gen Z

    Five years after filing for its second bankruptcy, True Religion is back and better than ever under new owners. Since emerging from Chapter 11 the company has been on a reinvention tear, with a renewed focus on DTC and connecting with younger consumers — and it’s paying off big time. The brand has gone from win to win in recent years with its trend-right styles and focused celebrity collaborations.  

    On this week’s episode of the Retail Remix podcast, True Religion’s Creative Director Tina Blake takes listeners inside the brand’s ongoing evolution.

    “We always honor our roots here, especially the strong ties to hip-hop culture that we’ve had all these years,” Blake shared. “It really helped shape True Religion from the start. Evolution is key and we identify the trends and lean into them from a brand heritage perspective, but we really like to go at it with a new tone and a fresh feel. It’s about preserving what has made us distinctive while refreshing our tone and design language to remain relevant.

    Blake shares how the brand is doing that, as well as:

    • How trend data and cultural cues guide True Religion’s product and creative strategies; 
    • The brand’s rapid growth in women’s and its plans to expand the category even further;
    • Why authenticity is key to its celebrity and cultural collaborations;
    • PLUS her go-to spot in LA for fashion inspiration.

    Listen to the episode here or anywhere you get your podcasts. And head over to LinkedIn to share your thoughts on the episode and who you’d like to hear from next!

  • It’s Your Relationship: The Hidden Cost of Sending Customers Off-Site for Verification

    It’s Your Relationship: The Hidden Cost of Sending Customers Off-Site for Verification

    Brands are investing more than ever in building direct relationships with their customers. First-party permissioned data is now the foundation of marketing, loyalty, and personalization strategies. But one critical moment often disrupts this connection: identity verification.

    At the exact moment when a customer is proving who they are to receive a special offer — whether as a student, military member or senior citizen — many brands send them off-site to a third-party verification platform. This move introduces friction, undermines trust and creates unnecessary risks. Instead of reinforcing the relationship, it interrupts it.

    Let’s break down why sending customers off-site for verification is a mistake.

    More Drop-Offs, Fewer Verified Customers

    Every extra step in a customer journey increases the risk of abandonment. Redirecting users to a third-party site causes friction, confusion and aggravation. Instead of a quick and seamless process, customers must now navigate an unfamiliar interface — often with a different design, branding, or user experience.

    Complicated or inconvenient verification processes can lead to huge increases in drop-off rates, turning potential conversions into lost opportunities. That’s real revenue left on the table — not because customers weren’t eligible, but because the process was too frustrating to complete or too unfamiliar to trust.

    Trust Takes a Hit

    Trust is fragile. A sudden redirect during the verification process can feel jarring — even suspicious. Customers may hesitate, wondering, “Why is this happening? Is this a scam?” In an era of phishing attacks and online fraud, consumers are right to be wary of unexpected detours.

    Even if they complete the process, their confidence in your brand may be shaken. Instead of reinforcing loyalty, the verification experience leaves them questioning whether their data is safe and whether they should even proceed with the transaction.

    Loss of Control Over the Customer Experience

    Every interaction shapes brand perception, and identity verification is no exception. When you hand this process over to an external provider, you surrender control over the design, the messaging and the seamless customer journey. The verification process may not match your brand’s tone, aesthetic or customer service philosophy.

    Even worse, external providers may sell your customers’ data to competitors or otherwise use it for their own purposes. And that is the last thing that you — or they — want.

    Increased Complexity and Compliance Risks

    Moving customer data between environments also creates vulnerabilities. Privacy regulations like GDPR and CCPA place strict requirements on how brands collect, store and transfer data. Every additional touch point adds complexity and increases the chances of non-compliance, data mishandling or potential security gaps.

    Increased Security Concerns

    Many consumers today are hyper-aware of the threats posed by online fraud, identity theft and data breaches. For that reason, consumers are understandably reluctant to provide sensitive information online. Further, some people might not have certain verification information at the ready (not everyone has memorized their social security number, for example). Identity verification platforms can fill that gap by utilizing real-time verification, trusted and authoritative data sources, multi-layered adaptive verification and more by asking for basic information.

    Keep it Direct, Keep it Seamless

    Brands are working hard to build direct, trusted relationships with customers. Every interaction is an opportunity to reinforce that trust, making consistency and control over the experience essential. Off-site verification disrupts that effort. It introduces friction, weakens trust and creates unnecessary compliance and security risks.

    The real promise of first-party permissioned data isn’t just collecting it — it’s ensuring that it flows smoothly through a transparent, opt-in relationship. Keeping verification in-brand ensures that customers stay engaged, data remains secure and your brand retains complete control over the consumer experience.

    Your customer relationships are too valuable to take outside of your brand’s environment. Keep them direct. Keep them seamless. And build lifetime loyalty from their very first interaction with you.


    Stephanie Copeland Weber is the CEO of SheerID, a leading provider for engaging and verifying high-value audiences. Over the past 25 years, she has developed deep expertise in growing and scaling the teams and operations of dynamic, high-growth, SaaS and tech-enabled services businesses.

  • #688: The Ford Motor Company Celebrates 120 Years of Loyal Customers!

    #688: The Ford Motor Company Celebrates 120 Years of Loyal Customers!

    Today we are re-publishing this fantastic episode from our archive as our planned episode has been delayed for technical reasons.

    As Ford Motor Company celebrates 120 years of innovation, we’re bringing back one of our standout conversations — this time with Beth Leverton, Director of Rewards, Loyalty & CX at the Ford Motor Company.

    Originally recorded after the Comarch User Group conference in Poland, this episode dives into what it takes to build customer loyalty for a global giant that operates in over 126 countries.

    Beth shares the evolving vision behind Ford’s loyalty strategy — how they’re balancing legacy with future-focused thinking, and what loyalty looks like beyond the dealership floor.

    Whether you missed it the first time or are tuning in again, this conversation is packed with insights into customer experience, emotional loyalty, and brand trust at scale.

    Hosted by Paula Thomas

    The post #688: The Ford Motor Company Celebrates 120 Years of Loyal Customers! appeared first on The Wise Marketer.

  • Apple Enters Saudi Arabia with Digital Storefront, Physical Stores Planned for 2026

    Apple Enters Saudi Arabia with Digital Storefront, Physical Stores Planned for 2026

    Apple Retail has entered the Kingdom of Saudi Arabia with the launch of the Apple Store website and app, allowing customers in the country to shop Apple’s full range of products directly and in Arabic for the first time. The digital storefront serves as a precursor to physical stores, which will arrive beginning in 2026.  

    Apple plans to open several flagship locations in Saudi Arabia, including one in the town of Diriyah, a UNESCO World Heritage site. Known as the “City of Earth,” Diriyah is the birthplace of Saudi Arabia.

    Even before the stores open, customers in Saudi Arabia now have access to the full range of Apple products and services online, including:

    • A personalized shopping experience with recommendations tailored to the Apple products they already own;
    • Configure-to-order options for Mac customers, allowing them to select and customize the device to their specific requirements, including chip memory and storage;
    • Free engraving for the first time ever in Arabic on AirPods, Apple Pencil and AirTag;
    • Personalized shopping support via chat and phone and Personal Setup assistance after orders are received;
    • Buy now, pay later financing through Tamara;
    • The Apple Trade In program, allowing customers to trade in older devices for credit;
    • AppleCare+ service and support offerings; and
    • The Apple Education Store, which offers savings on certain products for higher education students, their parents and teachers and staff.

    “We are thrilled to bring the Apple Store online and the Apple Store app to Saudi Arabia, offering customers a new way to explore and shop Apple’s extraordinary lineup of products and services,” said Deirdre O’Brien, SVP of Retail and People at Apple in a statement. “Our customers in Saudi Arabia are passionate about the things they can do with technology, and our teams can’t wait to connect with customers and help them discover how Apple innovations can meaningfully enrich their daily lives.”

  • How Ecommerce Brands can Navigate Pricing Pressure and Protect Profitability in 2025

    How Ecommerce Brands can Navigate Pricing Pressure and Protect Profitability in 2025

    This year has proven to be a high-pressure environment for ecommerce brands. Rising supplier costs, climbing digital ad spend and ongoing tariff instability are all putting pressure on profit margins. In this uncertain climate, it’s critical that brands maintain customer loyalty and sustain profitability with sharper strategy and greater agility than ever before.

    So how can brands navigate these economic challenges to keep customers engaged and profitability strong? While there’s no magic answer, there are three key tactics marketers can use: data-driven pricing, personalized marketing and strategic use of AI tools.

    Tightening Margins: Combatting Inflation and Tariffs

    For many brands, supplier prices have steadily increased due to inflating manufacturing and shipping costs, forcing difficult product pricing decisions. At the same time, tariffs are being introduced or expanded in some sectors, adding to the steady climb in digital ad prices, and ecommerce businesses find themselves in a perfect storm of expense.

    Still, customers expect value. In times of economic uncertainty, customer spending habits shift, with discretionary categories like fashion, home goods and supplements  already seeing declines in purchase frequency and average order value. But the brands that are able to maintain profitability all have a few things in common: they understand how to leverage their customer data, personalize their offers and treat pricing like the strategic lever it is.

    Pricing Thresholds: Finding the Sweet Spot

    Pricing today has to strike a balance, covering costs and protecting margins without pushing away shoppers who are more price-conscious than ever. Understanding your customers’ pricing thresholds is important; while slight price increases may go unnoticed, major hikes risk driving customers away entirely.

    When updating prices, consider:

    • Can a product’s full value be realized with better margins but fewer units sold?
    • Will customers perceive a decrease in value or affordability?
    • Do all products need new pricing, or only specific ones?
    • Should new discounts or bundles be offered to offset pricing changes?
    • Are certain customer groups more price-sensitive than others, and are they purchasing specific products?
    • Is there demand for a lower-cost offering to complement premium products?

    By understanding and testing these variables, brands can determine their optimal pricing strategies and avoid blunt increases that hurt more than help.

    Marketing Efficiency: Doing More with Less

    Making a return on ad spend (ROAS) is becoming harder to achieve as advertising costs continue to rise. As the ecommerce landscape continues to intensify and consumer behaviors evolve, marketers must prepare with identity-resilient strategies.

    To stretch every dollar further, brands should:

    • Leverage first-party data: It is a brand’s most valuable marketing asset and helps target high-value customers and personalize offers with confidence.
    • Accelerate algorithm learning: Ad platforms typically need a week to “learn” who to serve ads to. By identifying high-value audiences with data-backed targeting from the start, brands can reduce wasted spend and reach the right customers faster.
    • Personalize with advanced segmentation: Understand which customer cohorts differ in behavior, preferences and price sensitivity. Customize marketing based on lifecycle stage, channel preference and predicted value.
    • Measure and pivot in real time: Predictive analytics allow brands to track high-LTV customer acquisition mid-campaign. Adjusting spend and creative based on real-time data minimizes waste and maximizes returns.

    Marketing efficiency is about spending smarter, not more.

    AI: Turning Insight into Action

    AI has become an indispensable tool for ecommerce marketers, but only when it’s used effectively and intentionally.

    Here are a few ways leading brands are putting AI to work:

    • Using real purchase behavior alongside demographics and interests to generate personas unique to their customer base, and using them to target accordingly.
    • Utilizing predictive LTV modeling to know whether a customer is likely to become a high-value shopper over time, to help make smarter acquisition decisions in the moment instead of months later.
    • Identifying customers at risk of churning or those likely to repurchase soon. Lifecycle targeting helps tailor campaigns to these groups to drive repeat purchases and improve retention rates

    Of course, not all AI tools are created equal. Brands should prioritize platforms that offer transparency, accuracy and actionable insights grounded in their actual customer data.

    The Road Ahead

    While there are certainly some challenges ahead, it isn’t all doom and gloom. Consumers are expected to spend more in 2025. With 85% now shopping online, the rise of social commerce is pushing brands of all sizes to prioritize their digital strategy. 

    Retailers that take a proactive approach, one grounded in a deep understanding of customer behavior and a willingness to adapt, will not only protect their margins in 2025 but set themselves up for long-term success.


    Cary Lawrence is the CEO of  Decile, a customer data and analytics platform with a mission to help ecommerce brands grow profitably. In July 2020 Decile spun out of SocialCode, where Lawrence was a Co-founder in 2010. Prior to SocialCode, she worked in the Ad Innovations group at Washington Post Digital and served as a Program Associate at the Aspen Institute in the Communications and Society Program and she has roots in the agency world. Lawrence holds an M.A. in Communications, Culture and Technology from Georgetown University and a B.S. in Business from Wake Forest University and she taught Digital Analytics in Georgetown’s PR and Corporate Communications program.