Deeeeeep breath.
You made it through 2024 with enough new customers and a low enough churn rate to buy your Christmas dinner!
However, as a poet once said, “the years start coming and they don’t stop coming”. So, what do you need to pay attention to as 2025 kicks off?
AI keeps coming
How much work did you hand to AI this year?
Generative AI has taken most of the limelight, but we’re looking forward to Predictive AI being the real game-changer in 2025. Techniques like RFM modelling won’t go away, but AI will be able to pull in much more data and interpret it more efficiently than your human teams. We still think humans should have ultimate oversight of what AI puts out, but we’ll see its role move higher up the funnel and into more strategic inputs than just jazzing up your product descriptions.
Privacy Law
In the first half of 2024, discussions around privacy focused on the planned Data Protection and Digital Information (DPDI) Bill. As the bill was not passed into law before the General Election on July 4th, we had to wait for the new Government to decide its fate. As the main principles of the DPDI Bill had the support of all parties, it is now back as the Data Use & Access (DUA) Bill.
The Data & Marketing Association has an excellent deep dive into specific changes. What caught our eye was the new level of clarity on Legitimate Interest as a basis for processing data. We expect this will mean marketers embracing tools like BIMI and interactivity in email, as they are reassured that email will remain a powerful outreach tool rather than being throttled by new privacy standards.
Smarter merchandising
While generative AI has taken most of the limelight, the real potential of AI will be using data insights to deliver hyper-personalised buying journeys. While “most popular” or “new in” promotions will still have their place, product lists and even product pages can be tailored to the individual viewer. If you have a customer who exclusively wears New Balance shoes or who buys shorts even in winter, you can show them just what they need to see to make that next purchase.
Loyalty takes a hit
Forrester research has found that in 2025, consumers expect to be “be less loyal to brands in general but more committed to brands that assure them value.”
With the cost of living continuing to rise, so will price sensitivity. US and UK adults told Forrester that being a cheaper option than their previous brand is among the top 5 reasons they would give a new brand a try.
We’ve recently written about alternatives to simple discounting that can help you retain customers. Successful brands will have the data at their fingertips to identify the customer groups that need targeted actions.
More interest in sustainability
Sustainability is now far more than a buzzword; a study by McKinsey found that consumers not only say ESG (Environmental, Social & Governance) commitments matter to them but also follow through when it comes to purchasing. This trend is not universal across all categories, but we expect that early adopters will see enough success to pull other sectors along with them.
In February we’ll be hearing from Michelle Carvill, author of Can Marketing Save the Planet? about how to bring sustainability into your marketing strategy in a way that works for both you and your customers.
Social Commerce growing in importance
Social commerce has experienced remarkable growth in recent years, and projections indicate that this upward trajectory will continue until 2028. Last year, social commerce brought in approximately $570.7 billion in revenue. Experts forecast that this figure will climb to over $1.085 trillion by 2028, with some predictions suggesting it could reach as much as $1.1 trillion. Currently, over 106 million shoppers are contributing to these sales figures, but this number is anticipated to grow to 118 million by 2027.
Facebook maintains its leadership in the social commerce space. Instagram follows, while TikTok is growing faster than any other. TikTok is amplifying its ecommerce efforts. Insider Intelligence predicts that by the end of 2026, 15.8 million new buyers will join TikTok’s social commerce ecosystem.
Ecommerce managers need to focus more on Facebook, Instagram, and TikTok than ever before. Their advanced targeting capabilities and visually driven content formats drive engagement and conversions. Their integration of shopping features and one-click purchasing allows brands to reach potential customers seamlessly—where they already spend most of their spare time.
Summary
These are some of the changes that will affect pretty much every sector in 2025. Of course, there will be niche trends that are more important for your specific sector, and we’ll do our best to keep an eye on them, too.
Our best advice is to be decisive about how you handle trends like these. A deliberate decision whether or not to use AI is fine, pretending it isn’t making a difference to the world of marketing is foolish.
Whatever 2025 brings, we’re here to help you tackle it. Whether it’s upgrading your email game, or showing every website visitor personalised content, there’s something on the Spotler platform for you.
