9 Ways Retailers Can Use Personalization to Boost Sales in 2025

Great customer service in retail starts with strong connections. Shoppers remember how a store makes them feel — not just what they buy. That’s why personalization is one of the most effective ways to build loyalty and boost sales.

In fact, a 2025 survey from Apply Digital found that 95% of retail leaders are already using or plan to use real-time product recommendations, and 82% plan to spend more on personalization this year than in 2024. Nearly all respondents said they’re leveraging AI to tailor experiences — from personalized discounts to predictive merchandising.

When retailers design experiences around each customer’s preferences, habits, and moments that matter, they transform everyday transactions into meaningful relationships. These personalized touches show customers they’re more than just a sale — they’re part of the story.

Key takeaways

• Personalization builds stronger customer relationships by turning simple transactions into meaningful interactions.

• Using customer data to tailor offers, recommendations, and timing makes every message feel more genuine.

• Localized, seasonal, and milestone-based promotions create a sense of relevance and connection.

• Combining digital insights with human touch points — especially in-store — keeps experiences authentic.

• The most effective personalization evolves over time through testing, feedback, and refinement.

1. Use customer data to create tailored offers

Customer data is one of the most powerful tools for building personalized shopping experiences. By tracking purchase patterns, preferences, and timing, you can craft offers that feel thoughtful instead of generic — the kind that turn occasional shoppers into loyal customers.

• Reward frequent shoppers: Send exclusive discounts or early access to returning customers.

• Celebrate milestones: Offer birthday or anniversary deals that show appreciation.

• Send timely reminders: Suggest restocks or replacements for regularly purchased items.

• Highlight favorites: Feature products or categories a customer buys most often.

• Keep it authentic: Use language and visuals that fit your brand’s personality.

For example, Dollar General serves mostly rural communities — 80% of its stores are in towns of 20,000 people or fewer — and connects its personalization strategy to its mission of Serving Others. 

By prioritizing first-party, high-quality data, Dollar General tailors offers to customer needs instead of collecting unnecessary information. As Paul Bucalo, Senior Director of Digital and Marketing Engineering, explains:

“Instead of amassing large quantities of data, we focus on acquiring quality data that provides a contextual understanding of our customers that we can adapt to predict trends and future behaviors.”

2. Personalize product recommendations

Smart product recommendations help shoppers discover new favorites while boosting your bottom line. Whether online or in-store, suggesting the right item at the right time creates an effortless sense of connection — and often leads to larger baskets and happier customers.

• Pair products that go together: Suggest complementary or frequently bought-together items to increase order value.

• Use browsing and buying patterns: Create “You might also like” moments based on past interests or recently viewed items.

• Highlight similar styles: Showcase products that align with a shopper’s taste, size, or preferred brand.

• Bring personalization in-store: Train staff to make friendly, relevant suggestions based on what customers are browsing or holding.

• Keep it natural: Recommendations should feel helpful, not pushy — like advice from a trusted friend.

3. Customize promotions by location, season, or occasion

Personalization doesn’t always require deep data — sometimes, it’s about timing and local awareness. Adapting offers to reflect what’s happening in your community or the world around your customers makes your brand feel attentive and human.

• Lean into local culture: Highlight regional favorites or tie promotions to local events and holidays.

• Adjust for weather and season: Promote cold drinks during a heatwave, cozy products when temperatures drop, or sunscreen before summer starts.

• Mark the moments that matter: Run timely campaigns around holidays, sports seasons, or community milestones.

• Personalize store messaging: Update signage or window displays to reflect the same seasonal or regional theme as your digital promotions.

• Stay flexible: The best campaigns evolve quickly — reacting to what customers need right now.

4. Build loyalty programs that reward habits

Loyalty programs work best when they feel personal, not transactional. Shoppers are more likely to stay engaged when rewards reflect their actual habits, preferences, and milestones — not just a one-size-fits-all point system.

• Offer flexible rewards: Let customers choose how they earn or redeem points based on what they value most.

• Celebrate milestones: Recognize birthdays, sign-up anniversaries, or spending achievements with exclusive perks.

• Highlight favorite products: Reward customers for repeat purchases or engagement with specific categories.

• Surprise and delight: Send spontaneous bonuses or thank-you messages to keep the relationship fresh.

• Focus on recognition, not just rewards: Personal appreciation builds stronger loyalty than discounts alone.

5. Create a personalized in-store experience

Even in a digital world, face-to-face interactions remain one of the most powerful ways to personalize a shopping experience. Small, genuine gestures — like remembering a customer’s favorite product or asking about a past purchase — can leave a lasting impression that no algorithm can match.

• Recognize returning customers: Encourage staff to greet regulars by name and acknowledge familiar faces.

• Remember preferences: Use subtle cues — favorite colors, styles, or product lines — to make shopping feel effortless.

• Offer personalized suggestions: Recommend items based on past purchases or what the customer is browsing.

• Follow up thoughtfully: If appropriate, check in about an earlier order or special request.

• Blend data with empathy: Use customer insights to inform interactions, but let genuine conversation drive the connection.

6. Personalize the checkout and post-purchase experience

Personalization shouldn’t stop once the customer is ready to pay. Small touches during checkout and thoughtful follow-ups afterward can turn a simple transaction into a lasting relationship — and keep shoppers coming back.

• Make checkout seamless: Offer flexible payment options or saved preferences to remove friction.

• Suggest smart add-ons: Recommend gift wrapping, accessories, or care products that complement the purchase.

• Show appreciation: Send thank-you messages or order confirmations with a personal tone.

• Offer helpful guidance: Include usage tips, styling ideas, or how-to guides to enhance the product experience.

• Reward loyalty after the sale: Provide early access to new products or invite repeat customers to exclusive events.

7. Re-engage lapsed customers

Winning back inactive customers can be just as valuable as attracting new ones. Personalized outreach shows shoppers that you’ve noticed their absence — and that you genuinely want them back. The key is to make it feel like a friendly invitation, not a sales pitch.

• Spot inactivity early: Use purchase data to identify customers who haven’t shopped in a while.

• Send personalized “We miss you” offers: Feature products or categories they’ve bought before.

• Show them what’s new: Highlight new arrivals that match their previous tastes or styles.

• Offer a small incentive: A gentle nudge like free shipping or a limited-time discount can help them return.

• Keep it conversational: Use warm language — like a check-in from a friend, not a sales blast.

8. Personalize social media and online experiences

Personalization isn’t limited to email or in-store moments. Social platforms and digital channels offer powerful ways to show the right message to the right people based on how they interact with your brand.

• Segment your audiences: Create ads and organic content tailored to different customer groups — new shoppers, repeat buyers, or those who haven’t purchased in a while.

• Use behavioral triggers: Show different offers or creatives based on clicks, time spent on a product page, or cart abandonment.

• Retarget thoughtfully: Remind visitors of items they viewed or left behind with friendly, relevant messaging.

• Mirror in-store behavior online: Highlight local promotions or events based on the user’s location or shopping history.

• Keep content fresh: Rotate visuals and messaging so returning visitors see something new every time they engage.

Personalization has become a key priority for leading online retailers like Amazon, Walmart, and Etsy. In a 2025 Digital Commerce 360 report, 39% of consumers surveyed by TransUnion said they expect brands to personalize their online shopping experiences. Walmart’s Anil Madan emphasized the role of real-time data in creating more relevant online journeys:

“Every customer interaction, both online and in-store, generates data that helps us deliver highly personalized experiences.”

9. Measure, learn, and refine

Personalization isn’t a one-time effort — it’s an ongoing process of learning what resonates and improving over time. By tracking how customers engage with offers and experiences, you can refine your marketing approach to make every interaction more meaningful.

• Track key behaviors: Monitor engagement, repeat visits, and redemption rates to see what’s working.

• Adjust in real time: Update offers, timing, or messaging based on customer response.

• Identify patterns: Look for trends across segments — what delights one group might not connect with another.

• Test and evolve: Experiment with different types of personalization to see what drives the strongest results.

• Stay adaptable: Treat personalization as an evolving relationship, not a single campaign.

Now it’s personal

Personalization is all about connection. The more you understand your customers and tailor their experience, the more they’ll feel valued. Whether it’s sending a well-timed offer or greeting a regular by name, thoughtful gestures can make a big difference.

FAQ

What’s the difference between personalization and privacy invasion?

Personalization uses customer data transparently and responsibly to enhance the experience with relevant offers or messages customers have opted in to receive. Privacy invasion happens when data is collected or applied without consent, goes beyond what’s needed for service, or reveals information customers didn’t knowingly share.

How much data should retailers collect for personalization?

Only collect what’s needed to improve the shopping experience — like purchase history or preferences. Always be transparent about what’s gathered and why.

Can small retailers compete with Amazon on personalization?

Absolutely. Local retailers have the advantage of real relationships and face-to-face service. A friendly greeting or tailored recommendation can feel more personal than an algorithm.

How do I start implementing personalization with a limited budget?

Start small. Use free tools like customer surveys or email list segmentation to understand shopper preferences before investing in advanced software.

What personalization tactics work best for brick-and-mortar stores?

Remember names, preferences, and past purchases. In-person personalization thrives on human connection and genuine recognition.

How often should I ask customers to update their preferences?

Once or twice a year is plenty. Keep it simple — a quick email or in-store prompt helps ensure your data stays accurate without feeling intrusive.

What should I do if personalization makes customers uncomfortable?

Dial it back. Focus on service and timing rather than too-specific details. A little distance can preserve trust.

How do privacy regulations like GDPR affect personalization?

Regulations like GDPR set clear rules for consent and data use when they apply. If you handle European Union (EU) customers’ data or monitor behavior of people in the EU, you’ll need to follow these rules — and some U.S. states are adopting similar laws.