As online shopping grows, with estimated global retail sales of $32.8 trillion by 2026, retailers seek new ways to engage with customers and enhance their shopping journey. One such solution is a retail AI chatbot.  

In this blog, we will explore how retail bots can transform the shopping experience for your customers, making it more enjoyable, convenient, and tailored to their preferences. 

What is a chatbot for retail? 

They can be integrated into various websites, mobile apps, social media, and chat apps, such as Messenger, Instagram, Viber, WhatsApp, or Kakao, to assist customers throughout their shopping journey and create an omnichannel experience. 

They are excellent at guiding customers through the buying process and helping reduce carts abandoned by providing timely support. 

Retail chatbots help drive conversational commerce as a perfect mix of meeting modern customer expectations on the one side while improving customer satisfaction on the other.  

Types of chatbots for the retail industry 

Shopping chatbots that are available to meet various customer needs and improve the shopping experience usually fall into one of two broad categories: 

1. Rule-based chatbots

Rule-based chatbots are powered by pre-defined rules or decision flows and are programmed to assist with a series of options. These rules dictate how the chatbot should respond to a specific user input or scenario.  

Even though they do not learn from user interaction or adapt to new information over time, they are well-suited for handling routine and predictable tasks, such as providing standard product information and frequently asked questions like return policies or order tracking updates. 

Imagine this scenario: your business often gets more customer inquiries on open hours or return policies than human agents can handle. Implementing rule-based chatbots helps you provide 24/7 customer support with consistent responses, reduces customer wait times, and frees time for your agents to focus on more complex inquiries. 

Other benefits of using rule-based chatbots in retail are: 

• Scalability – They can handle a large volume of routine queries simultaneously. This is particularly valuable during peak periods such as Black Friday, Cyber Monday, or Singles’ Day sales. 
• Customization and control – Your business completely controls your rule-based chatbot’s rules and decision-making process. You can tailor the chatbot’s responses to align with your brand identity, industry requirements, or other standards. 
• Cost-effective – They can reduce the need for live agents and reduce costs. 
• Quick deployment – Rule-based chatbots are relatively easy and quick to deploy since they rely on predefined rules. 

2. AI-powered chatbots

AI chatbots use AI, machine learning (ML), and natural language processing (NLP) to understand users’ intent and respond to an inquiry in a conversational way. They can learn from data, adapt to user inputs, and improve their responses. 

Let’s take the beauty sector, for example. Your retail AI chatbot can give them tips on applying products, what skin type the product is best suited for, get information on skin care routines, and suggest other similar products they might like, creating an interactive and customized shopping experience. Our research shows that all generations prefer receiving personalized messages from the brand. 

The benefits of conversational AI chatbots in the retail industry are numerous, to name a few: 

• Continuous learning and improvement – AI algorithms allow chatbots to continuously learn from interactions, adapting and improving their responses over time. 
• Data-driven insights – AI-powered chatbots collect and analyze vast amounts of customer data, providing valuable insights into preferences, behaviors, and trends that can help drive increased sales, improve conversion rates, and increase revenue.  
• Personalized shopping experience – This includes everything from personalized product recommendations and context-aware conversations to awarding loyalty points, tailored discounts, helping in the decision-making process, and gathering feedback. They can even suggest nearby stores with product availability to enhance offline sales. 

Chatbot use cases in retail 

There is no better way of understanding the value of retail bots than seeing how they can be applied in the real world. Here are a few examples: 

Unilever: 14x higher product sales

Unilever was looking for a new and unique approach to its promotional efforts. After some research, they realized that the best way to promote the products was to approach the customers in a way they’re familiar with and mimic how such products get recommended organically. 

Result: 14x higher sales with a chatbot campaign that promoted product awareness and generated interest 

Salmoiraghi & Vigano: 100% CSAT score 

Salmoiraghi & Vigano wanted to digitally transform their business to improve and personalize customer service, so they chose WhatsApp as their starting point. With the help of our customer experience team, they also built an intuitive chatbot with Answers.  

Result: 46% of customers using the WhatsApp chatbot for support 

Farm Superstores: 60% reduction in operational cost

Farm Superstores was looking for digital-first solutions that would help them accommodate changing consumer needs and enhance their customer experience. 

They implemented a WhatsApp Business chatbot to answer frequently asked questions and offload repetitive customer queries from agents. 

Result: 60% reduction in operational costs thanks to seamless integration with existing systems and fast responses 

Now, let’s look at some tips and best practices to help you deploy similar effective chatbots for the retail industry. 

Tips and best practices for chatbots in retail 

1. Define clear goals and objectives 

Prioritize a clear understanding of your business objectives and identify key customer pain points. With this knowledge, tailor your chatbot to address them effectively. Don’t just implement a chatbot because everyone is doing it.  

2. Craft the right chatbot persona

Consistency in user experience is one of the key building blocks when building trust and brand loyalty. This means that even your chatbot persona should align with your brand’s tone and values. If your brand’s personality is fun and playful, make your chatbot like that; your customers will love it.  

How LAQO shaped Pavle’s character into a human-like bot with a great sense of humor in line with their brand personality:

3. Choose the right provider to build your chatbot 

When selecting a provider, you should review client feedback and examine their portfolio to ensure they have relevant experience and proven results.  

Consider Infobip Conversational Experience Orchestration Platform (CXOP), which represents the next evolution in chatbot technology by combining agentic AI with unified data and automation. CXOP lets businesses create chatbots and conversations that understand customer intent and adapt in real time. It also allows humans and AI to work together smoothly, so complex issues get resolved faster. 

This unified platform improves customer engagement by delivering personalized, goal-oriented conversations at scale while reducing response times and operational costs. 

For any eCommerce business, tracking the performance of online sales is a must. Keeping tabs on the right metrics can help identify potential pain points with your checkout process and clarify which steps are needed to mitigate any issues. 

Cart conversion rate vs. cart abandonment rate 

The cart conversion rate and the cart abandonment rate are two essential metrics that eCommerce businesses use to measure and analyze their online sales performance. 

Cart conversion rates represent the percentage of visitors who complete a purchase after adding items to their shopping cart. It provides insights into the effectiveness of the website in converting potential customers into paying customers and increasing the number of completed purchases. 

On the other hand, the cart abandonment rate refers to the percentage of visitors who add items to their shopping cart but leave the website without completing the purchase. It reflects the number of lost sales opportunities and can indicate potential issues in the checkout process or overall user experience.  

Calculate your cart abandonment rate 

While the cart conversion rate focuses on successful purchases, the cart abandonment rate highlights missed conversion opportunities and helps businesses identify areas for improvement in order to reduce abandonment and increase sales. 

Calculate your brand’s cart abandonment rate in a couple clicks to better understand how many shopping carts result in the number of completed purchases: 

Now let’s walk through the nitty-gritty steps on what goes on behind the calculation: 

1. Determine the timeframe 

The first step to calculating cart abandonment rate is to determine the timeframe you want to analyze. You can calculate the rate for a specific period, such as a week or a month, or for a specific event, such as a sale or a new product launch. Many businesses track shopping cart abandonment during seasonal promotions or events. 

2. Collect data

You need to collect data on the number of users who add items to their cart and the number of users who complete the purchase. You can find this information in your website’s analytics or eCommerce platform. Make sure to capture data like the number of shopping carts created, completed purchases, and payment options used, such as credit card or alternative payment methods. 

It’s also helpful to compare your data with industry benchmarks and cart abandonment statistics to better understand how your numbers compare to your competitors. Factors like high shipping costs often cause online shoppers to drop out before completing their purchase, a point we’ll explore later.

3. Formula for abandoned cart rate 

Once you have collected the data, you can calculate the cart abandonment rate using the following formula: 

For example:

4. Analyze and improve 

After calculating your cart abandonment rate, it’s important to analyze the data and identify potential issues with your checkout process. Some common reasons for cart abandonment include unexpected shipping costs, a complicated checkout process, limited payment options like only offering credit card payments, and a lack of trust with the website. Free shipping incentives can also significantly reduce cart abandonment. Once you have identified the issues, you can take steps to improve your checkout process and reduce cart abandonment. 

Cart abandonment statistics and common reasons 

Before analyzing your own performance, it helps to have a general sense of how cart abandonment typically looks across industries. On average, the shopping cart abandonment rate across industries is 69.99%. This means nearly seven out of ten online shoppers abandon their cart before completing the purchase. 

Cart abandonment rates also vary by industry. Sectors involving more expensive or complex purchases, such as cruise bookings, automotive sales, or luxury goods, tend to see much higher abandonment rates. On the other hand, industries like grocery and essentials usually have the lowest abandonment rates, mainly because these purchases are driven by immediate need and higher purchase intent. 

The source of traffic also plays a significant role. Online shoppers who land on your website via social media are more likely to abandon their cart, with abandonment rates reaching as high as 91%. In contrast, visitors who arrive through search engines or direct traffic typically show a stronger intent to purchase, resulting in lower abandonment rates. 

Timing can influence shopper behavior, too. Cart abandonment often drops at the end of the month, coinciding with paydays, and during major holidays when shoppers are more motivated to complete their purchases. 

Calculate abandoned cart rates to improve your eCommerce strategy 

Calculating your cart abandonment rate is an important step in understanding the effectiveness of your eCommerce store. By regularly tracking and analyzing your cart abandonment rate, you can identify potential issues and take steps to improve your checkout process and increase conversions. Dig deeper into what pain points your customers experience, whether it’s high shipping costs, lack of payment options, or insufficient trust signals, and explore options on how you can reach out to them to recover their carts and complete their purchase.

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. 

Every time a customer interacts with your brand, whether it’s on your website, through an app, or via social media, that moment matters. These interactions, known as retail touchpoints, collectively shape the customer journey and have a direct impact on satisfaction, loyalty, and revenue.

The modern customer demands digital and user-friendly interactions with little tolerance for pain points. In fact, 86% of customers will leave after two bad experiences with a brand.

No matter how strong your product is, the quality of each interaction ultimately defines your customer experience. Every interaction contributes to the customer’s impression of your brand and their overall experience while shopping with you.

Meaning, each touchpoint matters.

The key is to identify and optimize them to meet the expectations of your customers, and in turn, you can boost conversions and improve your bottom line.

What is a customer touchpoint?

These touchpoints are mapped out throughout the customer journey and provide insight into how customers interact with your business. Each touchpoint offers retailers a chance to impress and satisfy customers, improving their overall experience.

Now that we’ve defined them, let’s explore where these touchpoints typically appear along the customer journey.

Examples of retail touchpoints

Touchpoints exist in every stage of the customer journey. From pre-purchase to post-purchase, every interaction will determine if customers feel satisfied enough to purchase from you again. 

Map out all the interactions customers have with your brand to determine if those touchpoints add value to the relationship or have developed into pain points.  

Each of these interactions is a chance to reinforce your brand, remove friction, and deliver meaningful value. 

Here are some typical touchpoints for retail:

Identifying the right touchpoints is the first step to optimizing them. Here’s how to find what matters most.

How to identify touchpoints in retail?

Put yourself in the customer’s shoes and find every point of contact they have with your brand across channels. You can use feedback surveys and reviews to determine the emotions associated with each touchpoint and find pain points you didn’t know existed.  

Evaluate your touchpoint readiness with Infobip’s CX Maturity Assessment

Before optimizing your retail touchpoints, it’s important to understand where your business currently stands. Are your channels connected? Are you delivering a consistent, personalized experience at every step of the customer journey?

Infobip’s CX Maturity Assessment helps you evaluate how advanced your current setup is in managing retail touchpoints and delivering a seamless customer experience.

This quick, guided assessment benchmarks your business across four dimensions:

1. Channel coverage: Are you engaging customers where they prefer to interact (e.g., social media, messaging apps, email)?
2. Customer insight: Do you have the data to understand how each customer interacts with your brand?
3. Journey orchestration: Can you deliver the right message, on the right channel, at the right time?
4. CX agility: How quickly can you adapt and optimize your communication strategies?

Whether you’re just getting started or ready to scale with automation and personalization, the assessment gives you a clear view of your strengths and opportunities and guides you toward the next level of customer experience excellence.

5 messaging techniques to improve retail touchpoints

Relevant messaging plays a huge role in the success of transforming touchpoints into seamless experiences, much like in Petpetgo’s case.  

These five techniques help you turn each touchpoint into a moment of value.

1. Prioritize omnichannel and timely communication

Customers don’t want to repeat themselves across channels. A connected, omnichannel experience helps unify conversations and data, ensuring each customer interaction feels consistent and frictionless. Use customer preferences and activity data to send messages at the right time, on the right channel.

2. Make messages contextual and behavior-based

A generic message is easily ignored.

Make your communication touchpoints behavior or event-driven, and always have something relevant to say to your customers. A personal touch is also the perfect way to re-engage customers who may be on the fence, seem disengaged, or have shown any periods of inactivity. What’s more, compelling, personalized offers and incentives get attention and stand out above all other types of generic digital noise. 

3. Keep it conversational

Ultimately, customers respond best to human-to-human communication, which is at the heart of conversational and meaningful interactions. But artificial intelligence and digital apps play a major role in enabling brands to achieve a conversational customer journey. 

Using seamless CRM, customer service integrations, chatbots, and a range of messaging apps allows instant, interactive, and more personable communication between brands and customers – a recipe for customer satisfaction and overall better touchpoints. 

4. Make sure your messages fit the style of the channel

When messaging customers via apps like Viber and WhatsApp, you need to fit in with the other messages they will receive on those channels. Most of their contacts are likely family and friends, so if you send a formal business message or a flashy advertisement, it could be seen as invasive and spammy and get ignored. 

You must be prepared to interact with your customers how, where, and whenever they choose. If you keep your communication strategy conversational and natural, sending relevant and personalized messages at the right moment, you’re sure to see better results.  

Leverage the likes of mobile app messages, chat apps, and RCS to embed clickable buttons that ensure customers can reply easily and quickly. If you want your customers to participate in touchpoints, you need to make it as easy and painless as possible for them to comply. 

5. Always add value

Great customer messaging touchpoints always add value. When you have a customer’s contact details, don’t take advantage of that to send a stream of ads or reminders to visit your website. 

Your messages should offer something that makes your customer’s life easier and happier. 

Where possible, always give your customers options – people love the freedom to choose. Provide helpful and exciting content customized to suit their interests and preferences. 

Optimizing key retail touchpoints across the customer journey

Learning where and how to apply these essentials can make or break your touchpoints. But they allow you to optimize your interactions and improve the overall experience. 

Of course, there are some touchpoints that you can’t directly optimize, such as word of mouth or customer reviews. But with time and determination, customer satisfaction scores will go up, leading to better experiences and more positive reviews. 

Before we dive into specific pre-, during-, and post-purchase optimizations, let’s look at how different types of touchpoints (owned, paid, and earned) typically appear across the retail journey:

This table can help you identify where your current efforts are focused and where you may have gaps. A balanced strategy includes all three channel types, supporting a seamless and omnichannel customer experience.

Now, let’s break down ways to optimize important retail touchpoints throughout the customer journey to improve the overall customer experience: 

Pre-purchase touchpoints

Social media

• Make sure everything your customers need to know is readily available, up to date, and accessible on your social pages. 
• Use metrics to determine which posts perform the best and lead to conversions. 
• Create a strategy around your customers’ behavior and leave them with a great impression after viewing your social page. 

Advertisements

Similar to social media, metrics are key.

• Use performance metrics to determine which ads get the most interactions and drive the highest conversions.
• Identify which campaigns resonate with your target audience and refine the ones that miss the mark.
• Focus on relevance. Ensure your ads are timely, personalized, and aligned with your customer’s interests.

Blog

• Use blogs to educate customers about your products, services, and related topics they value.
• Link to relevant products within blog content to support discovery and boost conversions.
• Develop content around customer interests, such as beauty, health, or lifestyle, based on your industry.

Account signup

• Streamline the signup and login process to reduce friction and avoid drop-offs.
• Identify common points of frustration during account creation and look for ways to improve them.
• Offer incentives to encourage customers to create a profile, such as discounts, loyalty points, or early access to new products.

During purchase touchpoints

Web and app

• Ensure your website and app offer a seamless, user-friendly experience from download to checkout.
• Identify friction points in browsing or navigation that may prevent customers from completing a purchase.
• Optimize performance across devices and personalize the interface based on customer behavior and preferences.

Customer support

• Provide responsive, multichannel support to avoid long queues and boost satisfaction.
• Equip your agents with context about each customer interaction for faster issue resolution.
• Make it easy for customers to reach you, wherever they are and whenever they need help.

Checkout

• Simplify the checkout process to reduce abandonment by minimizing the number of steps and input fields.
• Offer flexible payment options and guest checkout for ease and speed.
• Ensure mobile optimization, as many customers complete purchases on their phones.

Post-purchase touchpoints

Billing

• Send billing receipts and order confirmations instantly to maintain trust and transparency.
• Make invoices easily accessible and downloadable across devices.
• Ensure billing communication is clear, accurate, and secure.

Delivery

• Keep customers informed about order status with real-time delivery updates.
• Notify them proactively about any delays or changes, don’t wait for them to ask.
• Enable tracking and self-service options to reduce frustration and support load.

Feedback

• Collect feedback right after a purchase or support interaction while the experience is still fresh.
• Use short, actionable surveys to capture key insights without overwhelming customers.
• Show that you value feedback by acting on it and communicating improvements.

Returns

• Simplify return and exchange processes to maintain trust even after a product doesn’t work out.
• Allow customers to initiate returns on their preferred channel with minimal effort.
• Be transparent about return policies and timelines upfront.

Re-engagement

• Send relevant, personalized content to re-engage inactive or one-time customers.
• Use behavior and location data to offer tailored promotions at the right time.
• Deliver messages on the channels where each customer is most likely to respond.

Create customer-centric retail touchpoints

Your customer experience is only as strong as your weakest touchpoint. By identifying gaps, using omnichannel strategies, and applying personalized messaging tactics, you can turn everyday customer interactions into lasting brand moments. By following these tips and practicing proactive outreach, you can create memorable experiences for your customers, with their needs center focused. You will build painless touchpoints and strong relationships that keep them coming back for more. 

Related content:

To meet rising consumer expectations, businesses need an omnichannel retail strategy that unifies every touchpoint. Shoppers still visit physical stores, but they also want quick, seamless digital experiences on their mobile devices.  

According to McKinsey, Gen Z values a seamless experience more than the shopping platform.  Also, 92% of Gen Z are more likely to buy from a brand if the message feels personal and relevant.    

To stay competitive, retailers need to use omnichannel communication and follow new trends to improve customer engagement in retail.  This is where omnichannel retail solutions come in.

What is an omnichannel retail strategy?   

These channels can include email, voice, and SMS, as well as digital channels, social media, messaging apps, and live chat.   

Here are some examples: 

• Synchronizing online and in-store inventories  
• Offering buy online, pick up in store (BOPIS)  
• Using customer relationship management (CRM) tools to track customer interactions across platforms  

The goal is to engage with your brand consistently, no matter the platform. For example allowing a customer to start a conversation on Instagram and continue it via WhatsApp without repeating information, improving their overall experience.   

The rise of omnichannel usage in retail

We analyzed 530 billion interactions on our platform in 2024 to uncover how customers and brands use omnichannel communications.  

Here are the main findings about channel use on our platform for retail and eCommerce brands compared to 2023:  

• SMS remains a key channel, for short-form text notifications  
• The number of businesses using more than two channels has grown from 15% in 2023 to over 25% in 2024  
• 550% increase in the use of RCS for rich media promotional messages, authentication, and two-way conversational support  

More retail brands are using multiple channels to run marketing campaigns, build complete customer journeys, and improve experiences. The most popular combination is SMS and RCS.  

Single channel, multichannel, and omnichannel retailing   

You can tell the difference between the three by looking at the words. But let’s break down the terms, especially focusing on omnichannel vs multichannel strategies.  

Trend 1: Increase digital engagement   

Today, 94% of brands use email, 60% use SMS, and 44% use voice to connect with customers. While these are essential, the first step to truly increasing digital engagement is expanding beyond these channels. To keep up with modern shoppers, use chat tools and social platforms they’re already on.   

Gen Z now uses social media to research brands more often than they use search engines.   This means that your shoppers want to explore your products, interact with your brand, and make purchases on their social media apps.   

Trend 2: Merging online and offline retail   

Retail shopping has undergone significant changes in recent years. As customers moved toward online shopping, retailers had to quickly adapt to meet their changing expectations. However, in-store shopping remains relevant and continues to play an important role in the retail experience. 

To bridge this gap, many brands are turning to phygital marketing, a strategy that combines physical store experiences with digital tools like mobile apps, QR codes, and social channels to create a smooth, omnichannel journey for customers. 

According to the IDC Infobrief, customers prefer a mix of online and in-store buying and return options. More than half (51%) say they’re likely to switch to a competitor if flexible returns aren’t available. Nearly 60% say that the ability to buy online and pick up in-store is important.   

Research indicates that 73% of customers engage in omnichannel shopping. They expect smooth communication and service both in-store and online, no matter where they are in their journey.   

Trend 3: Automation with the right chatbots   

Chatbots are a beneficial tool for retailers to bring better experiences to customers through their omnichannel strategy. Thanks to better chatbot technology, you can now use different types of chatbots that do more than just answer basic FAQs:

Rule-based chatbot

• Quick to develop and implement   
• For faster customer service, sales support, engagement, and query resolution   

Conversational chatbot 

• Use conversation design and natural language processing (NLP) to design conversation flows   
• For more complex conversations that replicate human-to-human interactions 
• Agentic AI chatbots can go a step further by taking initiative-handling tasks, making decisions, and guiding customers proactively across channels 

Trend 4: Personalization and the value of customer data   

Retailers need to focus on data they collect directly from customer interactions. A Customer Data Platform (CDP) helps you understand each customer and their activity across all touchpoints. With this data, businesses can tailor product recommendations, marketing messages, and promotions to each shopper’s preferences and behavior.  

48% of brands find it hard to organize customer data because different teams keep their data separate. For example, marketing and customer service might use different tools without sharing insights and this creates a gap.  

To fix this, businesses need a clear, company-wide strategy. When all teams work together and share data, you get a complete view of your customers. This helps you choose the right channels, send better messages, and improve customer engagement.   

Depending on the business, they will be in different places, digitally speaking. You can create different customer journeys depending on potential touchpoints. From there, you can make each journey better, more fulfilling, and more valuable for the customer. And in the end, that will set your business apart and create a memorable experience for the customer.  

Benefits of an omnichannel strategy  

1. Offers an end-to-end shopping journey  

An omnichannel approach helps retailers design complete customer journeys, from awareness to post-purchase, across multiple platforms. You can run personalized marketing campaigns, improve customer engagement activities in retail, and create smooth transitions between channels.  

2. Simplifies inventory management across all sales channels

By connecting online and offline systems, retailers get better visibility into inventory across all locations. This reduces stockouts and overstock, helping businesses meet customer expectations more efficiently. 

3. Improves customer service and provides better customer experience  

Customers want fast, easy access to support on any channel they choose. With omnichannel communication, retailers can reduce effort for the customer, provide proactive updates, and respond quickly, boosting satisfaction and loyalty.  

4. Unifies data  

Retailers can collect and analyze data from every customer interaction, no matter the channel. Unifying data helps remove silos between teams and enables more effective customer engagement strategies across departments.  

5. Increases sales  

With more touchpoints and consistent messaging, retailers can better guide shoppers toward purchase. Omnichannel strategies support upselling, cross-selling, and re-engagement, driving higher revenue.  

6. Personalizes the customer journey  

Using real-time customer data, retailers can tailor messages, offers, and experiences to individual preferences. Personalized journeys lead to stronger customer relationships and more meaningful brand interactions.  

How to use omnichannel communications in retail   

Retailers use omnichannel communication to send back-in-stock alerts, special offers, loyalty rewards, order updates, delivery notifications, and automated answers to common questions.  

Here is an example of how a customer can interact with a brand across four channels and have a seamless shopping journey.  

Awareness  

Consideration    

Purchase

Post-purchase  

How to create an omnichannel retail strategy  

To meet growing customer expectations, retailers need a smart omnichannel strategy. By using data, preferred channels, and seamless integration, you can boost marketing efforts and offer better brand experiences.  

Segment customers  

Start by using customer data to build detailed customer profiles. Segment audiences by demographics, behavior, location, social media platforms, and purchase habits. For example, if you’re targeting Gen Z, use TikTok and Instagram. Offer deals like loyalty program rewards or influencer promotions that match their shopping habits.  

Discover the right channels  

Know which channels your audience actually uses. Use customer preferences to guide your investments. Frequent shoppers might prefer loyalty apps, while occasional buyers respond better to email discounts or targeted ads on social media.  

Map the journey  

Build journey maps for your top customer segments. Plot each step from awareness to post-purchase and find friction points. For instance, a customer sees an influencer post, clicks the tagged brand, browses your Instagram, and buys through a retargeted ad. A strong omnichannel strategy supports this kind of seamless integration across all touchpoints.  

Communicate across channels  

Use the best channel for each step: social media for awareness, email to nurture, and live chat or WhatsApp for support. Use online tools to improve in-store visits, like helping staff check stock or answering questions on social media.  

Add automation  

Support your strategy with automation tools. Use chatbots to answer FAQs or guide shoppers through purchase steps. Transfer to a live agent with all the conversation details when necessary. Platforms like Answers (chatbot building platform) and Moments (customer engagement solution) make it easy to automate flows and CTAs.  

Test and improve  

Track campaign results by channel; clicks, conversions, satisfaction. Use A/B testing on subject lines, images, and timing to refine your messaging. Optimize regularly to improve ROI and customer engagement.  

Retail tools to power your omnichannel strategy

• Chatbot builder: Deploy rule-based or AI chatbots to handle customer support and engagement. 
• Customer data platform & marketing automation tool: Collect and unify customer data, then use it to send personalized, automated messages across channels. 
• Cloud contact center: Manage customer interactions across channels from a single, integrated platform.  

To make these tools truly omnichannel, they need to be integrated and synced with each other and the channels you choose. This seamless connection ensures a smooth, consistent customer journey. For that, you might need support from CX experts who can help you design and implement the right customer journeys for your business. 

Consumers, especially Millennials and Gen Z, aren’t just looking to buy. They’re looking to experience. They are trading possessions for memories. To remain relevant, brands must now prioritize creating experiences over simply selling products.

The challenge, then, is how to turn your retail store into an experience. Forget adding another display to your store, you’ll need to think bigger. We’re talking about transforming your physical stores into an adventure. Imagine a cosmetics store where customers don’t just buy makeup, they learn to create personalized looks through interactive digital tutorials and live mini-makeover sessions. Or a bookstore that hosts immersive literary escape rooms.

That is what it means to create a destination that blends the thrill of entertainment with the shopping experience. In other words, retailtainment. And that is precisely what we’ll explore in this blog, from its benefits and use cases, to how you can implement these strategies in your business.

What is retailtainment?

Types of retailtainment campaigns

Retailtainment campaigns are as diverse as the brands that implement them, but they generally fall into several key categories, such as:

How does retailtainment drive consumer experience?

How does retailtainment create a superior customer experience that leaves a lasting impression? It boils down to a few key principles:

Creating immersive experiences

Retailtainment activates multiple senses through interactive displays, themed environments, and engaging activities. Your customers can step into a world crafted just for them, a place where every day fades away.

Emotional connection and storytelling

Retailtainment taps into emotions by creating experiences that resonate with customers on a personal level. Storytelling plays a crucial role, weaving narratives into the retail environment to create a sense of connection.

Active participation

Interactive elements like games, virtual reality experiences, and hands-on activities directly engage customers. Active participation can evoke strong emotions, whether it’s the thrill of winning a game, the wonder of exploring a VR world, or the satisfaction of creating something unique.

Social interaction and shared experiences

Retailtainment often fosters social interaction, creating opportunities for customers to connect with each other. Shared experiences, like group workshops or live performances, build a community around your brand.

Surprise

Retailtainment introduces elements of novelty and surprise, breaking the monotony of traditional shopping. The urgency of a limited-time event or the exclusivity of a pop-up creates a sense of ‘I have to be there!’ If you’re not in on the experience, you’re missing out. And nobody wants to be the one scrolling through their feed, watching everyone else have an amazing time. Fear of missing out (FOMO) is a potent driver of participation.

How can retailtainment be tailored to different customer demographics?

When done right, retailtainment can resonate with a wide range of customers. There’s no one-size-fits-all approach, and while many factors play a role, let’s explore how to effectively tailor retailtainment experiences to different generations.

While this overview provides valuable examples and strategies for tailoring retailtainment to different age demographics, remember that these are just starting points.

Benefits of retailtainment

By embracing retailtainment, brick-and-mortar stores are investing in their long-term viability, ensuring they remain relevant and engaging for generations to come. Here’s why businesses should prioritize retailtainment in their marketing mix:

Increased foot traffic

Creating engaging experiences will attract customers and keep them lingering longer. More time in your store means more opportunities to connect, showcase products, and, ultimately, make a sale.

Enhanced customer engagement

Retailtainment focuses on getting customers involved. Interactive experiences spark conversations, create memories, and build stronger emotional connections. When customers actively participate, they’re more likely to remember your brand and return for more.

Boosted brand loyalty and advocacy

Happy customers are your best advocates. When you create unique and enjoyable experiences, you’re also building relationships. Those satisfied customers will share your brand on social media, recommend it to a friend, spread the word, and attract new business.

Increased sales and revenue

When discussing numbers, longer dwell times and engaged customers naturally lead to more sales. Experiential elements can also drive impulse purchases and increase average transaction values. It’s a win-win: happy customers and a healthier bottom line.

Competitive advantage

Customers are used to similar messages from different brands. How do you stand out in the crowd? Retailtainment helps you offer unique experiences specific to your brand that competitors can’t replicate.

Improved brand perception

Retailtainment experiences are made for sharing. They generate social media buzz, increase brand visibility, and create positive brand sentiment. And today, social proof is everything.

Data collection and customer insights

Interactive experiences provide a goldmine of data on customer preferences and behaviors. This valuable information can be used to personalize future experiences, refine marketing strategies, and make smarter business decisions.

10 examples of brands leveraging retailtainment

From pop-up shops to immersive installations, retailtainment offers a multitude of avenues for customer engagement. Here are a handful of examples of brands leveraging retailtainment to transform customer journeys:

Mall of the Emirates

The Mall of the Emirates redefines retailtainment by offering an escape from the Dubai heat. Beyond the shopping, dining, and entertainment options, lies Ski Dubai, a truly extraordinary attraction. This mall, located in the desert, houses the world’s largest indoor ski slope and snow park, allowing customers to easily browse luxury brands in one moment and reexperience the thrill of winter sports in another.

Tiffany and Co.

Tiffany & Co. has brought the iconic Breakfast at Tiffany’s dream to life, allowing customers to enter a scene straight from the beloved 1961 film. The Blue Box Cafe, bathed in Tiffany’s signature blue tones and adorned with herringbone marble and amazonite stone, perfectly mirrors the film’s sophisticated ambiance. Here, guests can indulge in a refined New York-inspired breakfast, coffee, and croissant in hand, living out a cherished fantasy just like Audrey Hepburn.

IKEA place

Recognizing that shopping for home goods can be a lengthy affair, IKEA has intelligently integrated elements of play and convenience. Their stores are designed as immersive showrooms, actively encouraging customers to envision their dream spaces while providing practical solutions.

Play areas for children allow parents to browse at ease, while in-store cafes and restaurants provide affordable and family-friendly dining options. Interactive room displays and strategically placed shortcuts throughout the store turn the shopping journey into a treasure hunt.

Alibaba’s “See Now Buy Now” fashion show

Another interesting example of retailtainment was Alibaba’s Singles Day 2018 fashion show. At first glance, it was just a traditional runway event, but it was live-streamed, transforming viewers into immediate consumers. Models showcased the latest fashion pieces, and with a few clicks, the audience could purchase those items in real time.

John Lewis and Kinder

In collaboration with Kinder, John Lewis transformed a section of their flagship Oxford Circus store into a festive, personalized wonderland. The space was transformed into a Christmas scene, complete with themed backdrops and an island of Kinder merchandise. At the heart of the experience was a bespoke personalization machine, allowing customers to witness their chosen name being printed directly onto a Kinder Egg Christmas box.

Nike’s House of Innovation

Customers in Nike’s House of Innovation in New York City can explore interactive try-on zones, where digital displays showcase products in dynamic ways. They can also personalize their footwear in dedicated studios or craft unique pieces that reflect their individual style. The store also features sports-themed challenges and experiences, inviting customers to actively engage with the brand.

LEGO stores

Stepping into a LEGO Store is akin to entering a world of limitless imagination, where colorful bricks and boundless possibilities take center stage. Central to their retailtainment strategy is interactive building stations, where customers can unleash their inner architect and construct their LEGO creations. Their stores incorporate interactive digital displays that bring LEGO sets to life, allowing customers to explore virtual worlds and engage with characters. LEGO’s success lies in its ability to tap into the essence of its brand: creativity, imagination, and play.

Meow Wolf

Meow Wolf discarded the conventional retail model and created elaborate, interactive installations that challenge perceptions and spark curiosity. Each installation is a labyrinth of interconnected rooms, secret passages, and hidden narratives, inviting visitors to explore, discover, and become active participants. Visitors are encouraged to touch, climb, crawl, and interact with the art, blurring the lines between observer and participant.

Topshop

Topshop Oxford Circus recently transformed into a portal to the Upside Down, celebrating the launch of their limited-edition Stranger Things clothing line. The centerpiece of the experience was a recreation of Joyce Byers’ living room, complete with the iconic alphabet wall and Christmas lights, where shoppers could snap photos and channel their inner Eleven. Another highlight was a replica of the Hawkins National Laboratory, where visitors could test their telekinetic powers on a Coke can.

Sephora

Sephora’s in-store Beauty Hub is an interactive learning center that hosts workshops, tutorials, and events led by beauty experts. These sessions provide hands-on experience with new products and techniques. Customers can participate in live demonstrations, receive personalized advice, and connect with fellow beauty enthusiasts. At the same time, digital tools like the Skin Analysis tool and Virtual Artist allow customers to explore products and techniques in a tailored way. These technologies provide instant feedback, personalized recommendations, and virtual try-ons.

Eataly

Eataly is a culinary theme park where customers can explore, learn, and savor the rich traditions of Italian cuisine. In-store cooking demonstrations and classes, led by expert chefs, provide customers with hands-on learning opportunities, allowing them to master the art of Italian cooking. Dining areas are integrated into the marketplace, creating a lively and authentic atmosphere. Customers can enjoy freshly prepared meals at various restaurants and cafes, each specializing in different aspects of Italian cuisine.

What about your retailtainment strategy?

To truly excel at retailtainment, you must understand your specific target audiences. This involves actively listening to customer feedback, analyzing their behaviors, and staying attuned to their evolving preferences. Authenticity is paramount. Copying other brands or implementing generic strategies will likely fall flat. Instead, you should leverage your unique identity and values to create retailtainment experiences that genuinely resonate with your customers.