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Retailer Building a 2025 Operational Plan

3 Things Retailers Need to Stop Doing in 2025

The retail landscape is evolving rapidly, driven by technology, shifting consumer expectations, and new operational challenges. As we approach 2025, retailers need to rethink their strategies to remain competitive and profitable. In this post, let’s explore three key practices retailers should rethink in 2025 to adapt to the changing market and set themselves up for success in the years ahead.

1. Stop Providing the Same Experience to All Customers

One of the most outdated approaches in retail is treating every customer the same. The days of one-size-fits-all strategies are over. Whether it's in the realms of customer acquisition, retention marketing, or even the post-purchase experience, retailers need to embrace personalization.

At Narvar, we often talk about how critical it is for brands to move beyond generic customer experiences and instead build tailored programs that speak to individual needs. For example, consider the post-purchase journey. A tailored returns program can incentivize customers to behave in ways that benefit the brand, reduce the risk of fraud, and build long-term loyalty. When retailers recognize the different preferences, behaviors, and risks of various customer segments, they can deliver a more personalized experience that drives loyalty and, ultimately, profitability.

In 2025, customers expect more than just a product—they want experiences that feel relevant to their needs. Whether it's offering rewards for repeat buyers, providing exclusive discounts to loyal customers, or personalizing post-purchase communication, personalization will be essential to sustain growth and maintain competitive advantage.

2. Stop Considering the Customer Journey as Siloed Functions

Another major pitfall for many retailers is treating the customer journey as a series of disconnected steps—an isolated shopping experience, a separate marketing message, and a distinct post-purchase interaction. In reality, the customer journey is an interconnected web of touchpoints, and the most successful retailers will treat it as one seamless experience.

The most advanced retailers in 2025 will break down the silos between their shopping channels, marketing strategies, customer service functions, and more. Whether a customer interacts with a brand via an e-commerce site, a brick-and-mortar store, or through a mobile app, the experience should feel cohesive. The challenge for retailers will be to unify all customer data across these various touchpoints to ensure that communications are contextual, relevant, and personalized.

Data from all channels can be leveraged to provide more relevant information at each stage of the journey. For instance, a customer who browses a product online but doesn't purchase might later receive a personalized email or SMS with a special offer. Similarly, a customer who makes a purchase in-store might receive an email with product recommendations based on their purchase history. These types of interactions require a holistic view of the customer journey, fueled by data and advanced analytics.

Retailers who can successfully integrate these touchpoints into a unified strategy will not only improve the customer experience but also enhance conversion rates and drive customer loyalty. By thinking about the customer journey as a continuous, unified experience—rather than a series of isolated interactions—retailers can ensure that they meet their customers where they are and guide them toward their next desired action.

3. Stop Thinking of AI as an Experiment 

Artificial Intelligence (AI) is no longer a futuristic concept—it’s a tool that is already revolutionizing the retail industry. But too many retailers still treat AI as something to experiment with in beta tests or innovation labs, rather than embracing it as a core strategy. In 2025, that will need to change.

AI has the potential to transform virtually every aspect of retail operations. From dynamic pricing strategies to personalized merchandising assortments, AI can be used to optimize everything. AI-powered tools can analyze massive amounts of data to determine what products customers want, when they want them, and at what price. It can also help predict customer behavior, allowing retailers to adjust marketing and retention strategies on the fly. The possibilities are vast, but the key is to integrate AI into the broader operational strategy, not just treat it as a “nice-to-have” or an experimental feature.

Narvar, for example, recently announced its Intelligent Retail Insights Service (IRIS). IRIS is a layer of intelligent technologies—machine learning, data intelligence and analytics—combined with industry domain experience and fueled by more than 42 billion consumer interactions annually across the Narvar customer base. Narvar’s dataset, second only to Amazon, cements its position as the leader in intelligent, personalized post-purchase experiences. As the first entrant to the post-purchase category, Narvar is now redefining it with AI.

Powered by IRIS, Narvar Assist offers delivery claims fraud prevention software that provides scalable, data-driven tools to reduce fraud, automate claims management, and enhance customer satisfaction, addressing a $101 billion problem for retailers. As the first and only AI application of its kind at this scale, Assist represents a major technological evolution—not just for Narvar but for the industry.

Retailers who make AI a foundational part of their strategy will be better equipped to scale quickly, meet demand more effectively, and drive profitable growth. By moving beyond the beta phase and adopting AI as a core tool, retailers will be able to innovate at scale and offer a much more tailored and efficient experience for their customers.

Conclusion

As we move into 2025, retailers who hold onto outdated strategies risk falling behind. Instead, those who embrace personalized experiences, unify the customer journey, and leverage AI to its fullest potential will be poised for success.

The future of retail is about adaptability and forward-thinking. By making these changes, retailers will not only meet the demands of today’s consumers but also position themselves for long-term success in an increasingly competitive landscape.

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