2025 is set to be a game-changer for Shopify merchants. From AI-powered personalization to sustainable shopping experiences, we’ve partnered with 10 ecommerce experts to bring you the top trends you need to know. Whether you’re looking to boost retention, streamline operations, or elevate your customer experience, this guide from industry-leading tech and agencies is your blueprint for supercharged success in 2025.
Integrated loyalty: A 2025 Shopify store essential
Rewind 10 years, and only around 30-40% of ecommerce brands had loyalty programs in place. As we head into 2025, the loyalty landscape looks very different.
Of the 500+ Shopify stores LoyaltyLion recently surveyed, over 60% already have a loyalty program. Of those that don’t already have programs, 44% are already working on implementing one, and 48% plan to kick off the process in 2025. Only 6% are not considering loyalty at all.
And it’s not just stores focussing on loyalty programs. Customers are also more eager than ever to engage with loyalty programs and redeem rewards. Traditionally, reward redemption has been a challenge—on average, only 50% of rewards were redeemed historically. But this is changing fast. Today’s shoppers are more eager than ever to engage with loyalty programs: 73% actively look to redeem rewards, and 66% say that the ability to earn and use rewards influences their spending behavior.
This shift is a huge opportunity for Shopify stores, as redeeming loyalty members are consistently proven to drive growth, purchasing more frequently, spending more per purchase, and delivering a significantly higher customer lifetime value (CLV) than non-redeeming members or non-members.
To be one of Shopify’s fastest-growing brands in 2025 and ensure you don’t fall behind the curve, you need to be one of the brands prioritizing a loyalty program and focus on optimizing that program for reward redemption.
The loyalty programs that are fully integrated across every customer touchpoint will see the greatest reward redemption—starting with the loyalty page, extending to personalized emails from your ESP, and culminating in a frictionless and loyalty-optimized checkout experience.
Don’t be part of the 6% – be one of the stores integrating loyalty across the entire customer journey, then watch your reward redemption soar and your store’s growth with it.
Bridging the gap: Why omnichannel will dominate like never before
Vervaunt
Bridging the gap between online and offline is an ever-present focus for a large proportion of brands with both a physical and digital presence across the industry.
KITH and Hugo Boss are standout examples for 2024, leading the way with micro-interactions, rewarding customers for their in-store footfall and brand engagement in exchange for loyalty points. This is a great mechanism for building on an existing community and driving engagement at its core. Receiving points and climbing the tiers of a loyalty program helps bring back customers and boosts conversion rates, knowing you’ve got points to spend and use freely.
Pinpointing Hugo Boss’ loyalty program, they have carefully crafted a compelling membership experience, whereby you are entitled to a vast expanse of rewards that touch omnichannel; for example, receipts returns (great for in-store ease), access to a ‘VIP lounge’ in their flagship Dusseldorf store – where you can grab a complimentary drink on the brand – invitations to exclusive events such as stays in the ‘BOSS House, Bali’, as well as access to the Tour de France with invited guests. This really strengthens the value proposition of enrolling in a membership program as either a prospective or existing customer.
Looking ahead to 2025: a key focus for brands, expectedly, will be building a community and membership proposition. Whether this is as simple as leveraging wallet pass technology to register offline customer engagement, or hosting member-only events, it’s key to focus on the levers in which you can ultimately build brand exclusivity and experience.
Distributing inventory will continue to be the most effective way to provide fast, affordable delivery while saving money
ShipBob
Distributing inventory will continue to be the most effective way to provide fast, affordable delivery while saving money.
Ecommerce shoppers already expect 2-day shipping at an affordable price (or even for free), and the delivery standards will only climb higher as time goes on.
To meet and beat these expectations and keep customers coming back, more and more Shopify businesses are leveraging a distributing inventory strategy. Last year, 36% of brands said that they would increase the number of fulfillment centers they ship from, and we’re predicting that trend will continue into 2025.
Distributing inventory across multiple strategically located warehouses of fulfillment centers places your inventory closer to more customers. This shortens shipping distances and reduces the average zone you ship to, lowering shipping costs and times and delighting your shoppers. You can even showcase estimated delivery dates and 2-day badges on product pages to boost your conversions.
While you will incur additional warehousing costs by storing SKUs to be stored out of more than one facility, the savings you see in shipping – and the customer loyalty you’ll gain from offering fast, affordable delivery – reliably offset and outweigh these costs. In fact, by distributing inventory across multiple fulfillment centers through partnering with a 3PL like ShipBob that has a vast network with warehouses in different regions and countries, some ecommerce brands have:
- Saved $1.5M in outbound freight costs>
- Extended holiday shipping cutoffs to capture hundreds of thousands of dollars in additional revenue per day
- Cut shipping times by a third
- Reduced fulfillment costs by $2/order
Social commerce transformation and its growth in 2025
adQuadrant
In 2025, TikTok Shop is set to redefine ecommerce, creating a seamless path from discovery to purchase that’s tailored to user interests rather than social networks. TikTok’s unique “interest graph” curates content based on individual preferences, enabling brands to reach consumers with highly relevant content—even if they don’t have a massive follower base. This approach allows brands like ELF Cosmetics and Cider to authentically engage audiences through creators who genuinely endorse their products. This strategy creates an “infinite loop” of discovery, interaction, and repeat purchases, establishing a cycle where customers repeatedly return for engaging, educational content that reinforces their brand loyalty.
For brands, TikTok Shop provides a powerful channel to build both reach and retention. The platform’s live shopping capabilities and real-time interaction give customers a direct line to brands, answering questions and creating an immersive shopping experience that drives loyalty. With a younger, highly engaged audience averaging 95 minutes daily on the app, TikTok’s content loop facilitates brand advocacy and repeat purchases, resulting in strengthened customer relationships and consistent revenue. For consumers, TikTok delivers a highly personalized experience, exposing them to brands and creators they trust and offering new ways to interact with products.
To capitalize on this trend, brands should prioritize authentic content and partnerships with creators who resonate with their audiences. High-volume, story-driven content addressing customer needs and questions can create a lasting impact, while TikTok’s built-in CRM tools enable brands to segment audiences for targeted messaging. Incorporating live shopping and real-time interactions fosters a genuine brand community, reinforcing customer loyalty and encouraging repeat purchases.
How Gen Z and millennials are shaping the subscription economy in 2025
Roswell
In the dynamic subscription landscape of 2025, a clear pattern emerges: Gen Z and millennials are taking the lead in subscription adoption. These younger demographics, known for their digital prowess, gravitate towards seamless online experiences, underlining the significance of user-friendly digital platforms.
Businesses are adapting by placing a premium on flexibility to retain subscribers. This includes tailored deals, the option to adjust subscription levels, and the ability to pause subscriptions temporarily. The shift towards personalized offerings highlights the need to cater to individual preferences and behaviors.
Personalization remains a cornerstone for businesses, with a dual focus on AI technologies and loyalty programs to deliver customized experiences. AI enables companies to fine-tune subscription services, while loyalty programs offer valuable insights into customer preferences and behaviors, enhancing personalization efforts.
To meet the demand for authentic connections, businesses are broadening their content strategies to incorporate more user-generated content. Gen Z and millennials, in particular, rely on recommendations from trusted sources, emphasizing the importance of building customer trust and credibility.
As brands address the challenge of inactive subscribers, re-engagement strategies are key to reinforcing the value proposition and giving customers more control over their subscriptions. In a competitive market, subscriber retention hinges on providing meaningful experiences and nurturing strong customer relationships.
How data-driven AI personalization will transform ecommerce in 2025
Attentive
In 2025, data-driven AI personalization is set to revolutionize ecommerce by making customers feel truly seen and valued. Using advanced AI to dive deep into customer data, this trend will give brands the ability to deliver uniquely tailored experiences to each shopper.
During Cyber Week 2024, brands like Crate & Barrel, UGG, Hoka, and Brooks Brothers used Attentive AI and saw an impressive 86% year-over-year revenue growth from AI-powered messages, highlighting the pivotal role of AI in customer engagement and retention.
The impact on both brands and customers is significant. For brands, AI personalization translates into higher conversion rates, increased customer loyalty, and a better ROI For customers, it means a smoother, more enjoyable shopping experience where every interaction feels relevant and special.
Looking ahead, it’s clear that AI personalization is not just a trend but a major shift in how brands connect with their customers. With the power to analyze huge amounts of data in real-time, AI helps build deeper, more meaningful relationships. By embracing AI, brands can stay ahead of the curve and meet the growing expectations of today’s consumers, driving both growth and loyalty in the ever-evolving world of e-commerce.
How inclusive and diverse beauty products drive customer retention and loyalty
Radiant
The growing trend for inclusive and diverse beauty products improves customer retention by fostering deeper emotional connections, building trust, and enhancing loyalty with a broader audience. Here’s how:
1. Meeting Individual Needs
Inclusive products cater to a wide range of skin tones, hair types, and beauty needs, making customers feel seen and valued. When consumers find products that address their unique requirements, they’re more likely to stick with the brand. Brands offering inclusive options also attract a diverse audience, creating a stronger and more loyal customer base.
2. Building Emotional Connections
Customers gravitate toward brands that reflect their identity and values. By offering diverse products, brands signal an understanding and respect for their customers’ unique experiences, for stronger emotional ties. When customers see themselves represented, they’re more likely to trust and advocate for the brand.
3. Driving Brand Loyalty
Inclusivity aligns with broader social values, enhancing brand reputation. Loyal customers prefer brands that champion causes they believe in. Also, by addressing gaps in the market, inclusive brands reduce the frustration customers face when searching for suitable products. Positive experiences lead to repeat purchases.
4. Encouraging Community Engagement
Customers who feel included are more likely to share their experiences, boosting organic growth and reinforcing loyalty. Embracing inclusivity encourages customer advocacy, helping boost retention.
5. Staying Ahead of Competitors
Brands that lead in diversity stand out in crowded and competitive environments, earning customer loyalty.
By acting on the need for inclusivity, brands can attract diverse customers, nurture enduring relationships, and drive retention.
Personalized push notifications: a key driver of retention and lifetime value in 2025
Venn Apps
In 2025, personalized push notifications will emerge as a key channel for e-commerce, standing alongside SMS and email as a top driver of customer retention. With conversion rates 7–10 times higher than email or SMS and no costs per send, push notifications offer an incredibly effective way to re-engage customers and boost lifetime value. When combined with smart customer segmentation – based on factors like spend, demographics, or loyalty tiers – their impact becomes even greater, enabling brands to connect with their audience in a highly relevant and meaningful way.
Brands like Represent are already harnessing the power of targeted push notifications alongside their in-app loyalty schemes to boost customer retention. For instance, Represent segments push sends by loyalty tier, notifying their most loyal customer first about new product drops. This approach not only drives higher engagement but also encourages larger purchases, with Represent’s app delivering an AOV of approximately 10% higher than their online store. By leveraging personalized, real-time notifications, brands can create a sense of exclusivity and urgency, outperforming traditional email and SMS campaigns in both conversion rates and order size.
For brands with a mobile app, the recommendation is clear: use personalization to send relevant, on-brand push notifications that enhance the customer experience and drive conversions. For those without an app, integrating push notifications through a custom mobile app should be a priority. When combined with email and SMS as part of a comprehensive marketing strategy, push notifications can significantly increase customer engagement and LTV, making them an essential tool for retention & growth.
Branded resale as the key to retention in sustainable shopping
Treet
In 2025, sustainability has become a decisive factor in consumer choices, with eco-conscious shoppers gravitating toward brands that prioritize the planet. Branded resale has emerged as a powerful driver of customer retention, addressing this demand by keeping shoppers engaged within a brand’s ecosystem. With resale, brands cater to both the environmentally conscious and the budget-savvy, offering sustainable and affordable options under their umbrella. This approach isn’t just a trend—it’s a transformation of the customer journey.
Recent data underscores resale’s potential: the secondhand market is projected to reach $74 billion by 2028, growing faster than the broader retail sector. For brands, this growth is an opportunity to strengthen loyalty by preventing customers from turning to third-party marketplaces. Branded resale platforms provide an avenue for affordability, responsibility, and ongoing engagement, making them an essential part of a retention strategy.
The impact is twofold. For brands, resale extends touchpoints with customers, allowing them to stay relevant while reinforcing values. For customers, it creates a shopping experience that aligns with their ethics, fostering a deeper connection with the brand. Notably, shoppers who redeem resale payouts as store credit often spend up to 2.5x their credit amount on new items, creating a virtuous cycle of engagement and revenue generation.
Businesses can seize this opportunity by integrating branded resale platforms, highlighting the dual benefits of affordability and sustainability, and using resale as a storytelling tool. By emphasizing the compelling interplay between circularity and customer loyalty, brands can transform resale into a cornerstone of their long-term strategy.
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ABOUT THE AUTHOR
Charlie Casey, CEO of LoyaltyLion
Charlie Casey is CEO and Co-Founder of LoyaltyLion, a data-driven loyalty and engagement platform that powers ecommerce growth. Proven to increase retention and spend, LoyaltyLion is trusted by thousands of fast-growth ecommerce merchants worldwide. Prior to founding LoyaltyLion, Charlie joined the Foreign and Commonwealth Office as an Economics Advisor before becoming a consultant at Deloitte.