Retail customer engagement: All you need to know for 2025

Remember when a great product was enough to attract customers? Now, expectations go beyond the product. 

Retail experiences have changed because customers expect personalized interactions, instant support, and flawless service every time. To stay relevant and drive brand loyalty, retailers must move beyond generic strategies. 

But what does customer engagement mean exactly, and how should you engage  customers in retail? This blog will walk you through all you need to know to make your retail business thrive off relevantly engaging customers. 

What is customer engagement? 

Customer engagement is about building a customer relationship with customers through every interaction, whether it’s marketing, sales, or service-related.  

These interactions can be initiated by the brand or the customer, and they happen throughout the entire customer journey – before, during, and after a purchase. Whether it’s a one-way message or a two-way conversation, online or in-store, any touchpoint a customer has with your brand counts as engagement. 

Examples of customer engagement include: 

To boost results, meet customers where they already are. Engaging customers on their preferred digital channels creates more personalized experiences and encourages loyalty through relevant, timely conversations. 

Why is customer engagement important? 

Relevant engagement boosts sales and cuts churn. In fact, 80% of customers say the shopping experience matters just as much as the product itself. That means how you connect with customers can make or break your success.

When done right, customer engagement leads to: 

Customer engagement vs. customer service 

Customer service is the help a customer gets when they reach out to a brand with a question or issue. 

Customer service is a type of customer engagement and it’s just a piece of the puzzle. True engagement happens when retailers proactively connect with customers in meaningful ways. 

Common customer service use cases include:

• Answering product-related questions via live chat or call 
• Helping customers track, modify, or cancel orders 
• Processing returns, refunds, or exchanges 
• Resolving issues with delivery or payment 
• Offering technical support for product setup or usage 
• Providing assistance through chatbots outside business hours 

Customer engagement vs. customer experience (CX) vs. customer satisfaction 

To avoid confusion, it’s also helpful to understand how customer engagement differs from similar terms.  

Customer engagement 

This is all about how customers interact with your brand on an ongoing basis. 

It includes things like: 

• Clicking on a promo email 
• Messaging your support team 
• Browsing or buying through your app 
• Responding to a social media post 

Customer engagement is the sum of all the ways customers stay connected with your brand over time. 

Customer experience (CX) 

This is the overall perception a customer forms about your brand, based on every step of their journey. 

It covers things like:

• How easy it is to find and buy a product 
• The tone and clarity of your communication 
• How smooth your website or app feels 
• How they’re treated during support interactions 

CX is the big picture, from the first impression to the post-purchase moment. 

Customer satisfaction 

This zooms in on how a customer feels after a specific moment or experience. 

It answers questions like: 

• “Was this easy?” 
• “Did this solve my problem?” 
• “Would I come back?” 

Satisfaction is often measured through quick surveys, star ratings, or NPS scores, and it helps you understand what’s working and what needs fixing. 

How customer engagement works in 5 stages 

In retail, customer engagement typically happens across five key stages. Customers don’t always follow them in order, they can jump ahead or return to earlier stages. What matters is understanding their needs at each point to create a better shopping experience. 

1. Awareness 

This is the first moment customers discover your product, service, or brand. It could happen through social media, ads, online searches, or recommendations. Your goal here is to grab their attention and make a memorable first impression. 

Pro tip: Use click-to-chat ads on platforms like Instagram and Facebook to invite customers into direct conversations with your brand. 

2. Interest 

Once they know you exist, potential customers start looking deeper. They compare options, explore features, and evaluate benefits. You need to provide helpful, engaging content that shows how your product stands out. 

Pro tip: Set up a friendly, fast chatbot to answer common questions about your products, offering real-time support boosts interest and trust. 

3. Consideration 

At this stage, customers are weighing whether or not to buy. They’re checking your prices, quality, reviews, and reputation. Now is the time to make a clear case for why your product is worth it. 

Pro tip: Add value to your conversations with videos, images, and rich media that explain what makes your product better and easier to buy. 

4. Conversion 

Here’s where interest becomes action. Whether it’s buying a product, subscribing, or signing up, the key is to make it as simple and stress-free as possible. 

Pro tip: Let customers pay directly in the chat – tools like WhatsApp payments remove friction and help close the deal instantly. This helps improve conversion rates. 

5. Loyalty 

After the purchase, it’s all about keeping the customer coming back. Great service, personalized experiences, and thoughtful follow-ups turn one-time buyers into loyal customers and loyal brand advocates. 

Pro tip: Use customer data to create tailored campaigns that suggest relevant products and spark the next purchase, boosting customer loyalty long term. Consider offering a loyalty program. 

How to build a strong customer engagement framework 

A customer engagement framework outlines how retailers can keep customers involved and connected with their brand. Here’s how to get started: 

Research and prepare 

Understand your audience by analyzing customer behavior and collecting data to create buyer personas. This helps you identify customer needs and intent across interactions. 

Map the customer journey 

Create a journey for each person, pinpointing key touchpoints and pain points. This shows where and how customers currently engage with your brand, and where there’s room to improve. 

Build your engagement strategy 

Use journey insights to find what’s working and what’s not. Focus on customer preferences, like communication channels and messaging style, to shape a plan that meets their expectations. 

Use the right platforms and tools 

Implement an omnichannel platform that supports personalized, automated conversations across multiple channels. This ensures a seamless and consistent experience. 

Measure success 

Track key metrics like ROI, customer satisfaction, churn, and NPS to understand what is working. Use these insights to refine your approach over time. 

10 effective strategies to improve customer engagement in retail 

Customer engagement is now a key driver of loyalty and revenue. Retailers must evolve their communication strategies to match shifting customer expectations, especially across digital platforms.  

The CX Maturity Report shows that over half of brands (57%) struggle to effectively engage customers. If you’re facing similar challenges, here are 10 proven strategies to help you create stronger, more meaningful interactions with your customers: 

1. Use an omnichannel approach 

Customers expect consistent, connected experiences, no matter which channel they use. An effective omnichannel retail strategy aligns communication and service across platforms like: 

• WhatsApp 
• Viber (Click here to explore how to use Viber Business Messages for customer engagement) 
• RCS  
• Apple Messages for Business 
• SMS and Email 

Use each channel strategically across different stages of the customer journey, from discovery and purchase to post-sale support and re-engagement. Additionally, use rich media features (e.g., carousels, video, stickers) to make messaging more engaging and product-focused. 

2. Personalize every interaction 

Start by analyzing how shopping habits are shifting. Segment your audience based on how they browse, buy, and interact. Then, personalize your messages.  

Customers don’t want generic outreach. Go beyond using a customer’s name. Go into their purchase history, preferences, and behaviors to tailor recommendations, send relevant offers, and acknowledge milestones (like birthdays or anniversaries). Personalization increases trust and customer retention. 

3. Send time-sensitive messages that drive action 

Timely messages can accelerate conversions. Use SMS to send limited-time offers, low-inventory alerts, or shipping updates. For account creation or logins, simplify the process with one-click authentication or time-based codes to speed up transactions without disrupting the shopping experience. 

4. Streamline mobile checkout with identity verification 

A complicated checkout process is a leading cause of cart abandonment. Implement Mobile identity verification to automatically fill out forms and validate user information in real time. This helps customers complete purchases quickly, without frustration or friction. 

5. Use conversational AI and smart chatbots 

AI-powered chatbots offer 24/7 support and instant answers to common questions. With natural language processing, chatbots can simulate human conversations and: 

• Guide users through purchase decisions 
• Suggest products based on previous behavior 
• Provide order updates or help with returns

This reduces the load on support teams while delivering fast, personalized service. 

6. Optimize post-purchase engagement 

Continue engaging customers even after the purchase is complete. Follow up with helpful content like setup guides, style tips, or care instructions. Encourage reviews or ask for feedback via survey links on their preferred channel. This keeps the conversation going and shows you value the customer beyond the transaction.  

For example, you can improve post‑purchase experience with WhatsApp Utility Messages. 

7. Empower loyalty through gamification 

Introduce rewards programs with gamified elements, like badges, points, and tiered perks, to encourage repeat purchases. Give customers more reasons to engage by allowing them to earn rewards through referrals, reviews, or sharing content. 

8. Offer real-time support through live chat 

Integrate live chat support on your website or mobile app to offer help during critical decision-making moments. Easy access to human can be the difference between a sale and a lost customer, especially for expensive purchases. 

9. Connect in-store and online shopping using phygital marketing 

Phygital marketing brings together the best of both physical and digital retail to improve the customer experience. This strategy appeals to customers who like the convenience of online shopping but still enjoy visiting stores. For example, you can: 

• Use QR codes in-store to link shoppers to online deals or product info 
• Offer mobile payments and contactless checkout for faster service 
• Personalize in-store experiences using customer data from online activity 

10. Use user-generated content (UGC) 

Encourage customers to share photos or reviews on social media and tag your brand. Display UGC on your product pages to build trust and foster community. Seeing real people use your products is one of the most authentic forms of engagement. 

How NIVEA achieved 207% of its campaign reach target with innovative customer engagement: 

How to measure customer engagement 

To understand how well your engagement efforts are working, track these key metrics: 

Net promoter score (NPS) 

Measures how likely customers are to recommend your brand to others – an indicator of trust and loyalty. 

• Example question: “On a scale of 1–10, how likely are you to recommend us?” 
• Follow-up with open-ended questions for deeper insights. 

Churn rate 

Shows customer retention by calculating the percentage of customers lost during a given period. 

• Formula: (Lost customers / total customers at the start + acquired during period) 

Customer satisfaction score (CSAT) 

Assesses customer satisfaction through simple surveys. 

• Often measured on a numeric scale or with emojis/emotions. 

Web engagement metrics 

Track how users interact with your digital content: 

• Pages per session 
• Campaign click-through rates 
• Time spent on site or specific actions 

Retail success with customer engagement platform 

The bottom line: Customers now want messages that feel personal, quick, and conversational, not just a sales pitch.  

To meet these expectations, retailers in 2025 need single intelligent platform capable of engaging customers in real time, across any channel, without juggling multiple disconnected tools. 

CXOP can help people choose what to buy, send them personalized messages, or connect them to a real person when things get tricky. It puts messaging, automation, and AI into one easy-to-use platform. The outcome includes more conversion rates, happier loyal customers, and lower costs for the business.