As the popular aphorism says, “You can’t really know where you’re going until you know where you have been.” Insights from this year’s Cyber Week can offer a comprehensive crystal ball, surfacing retail and e-commerce trends that point to where the industry is heading.
With over 1,000 of the world’s leading brands as customers, Iterable’s Cyber Week data paints a picture of a sector that is rapidly adapting to evolving consumer preferences and technological advancements.
Here are 6 retail and e-commerce trends we can expect to see in 2025.
1. Personalization Will Drive E-Commerce Sales
McKinsey reports that personalization lowers customer acquisition costs (CAC) by up to 50% while increasing revenue by 5% to 15%. So, it’s no surprise that many e-commerce businesses provided personalized shopping experiences to customers throughout Cyber Week via targeted email campaigns and customized product recommendations.
Twilio Segment’s 2024 State of Personalization report revealed that 89% of leaders believe personalization is crucial to their business’ success. However, 67% of US e-commerce shoppers said in a Forrester survey that their brand experiences were “okay.” Even worse, 0% of consumers regarded these experiences as excellent.
This means personalization will have to take the front seat in 2025. Online retailers need to up their personalization game to provide more tailored and relevant customer experiences, whether by recommending products based on past purchases or optimizing by send time.
A personalized approach that accounts for customers’ emotional and familial needs is bound to work better than one that doesn’t. Iterable’s 2024 Cyber Week data revealed that cross-channel message volume dropped by 50% on Thanksgiving Day compared to Black Friday—clearly signaling that brands are prioritizing customer empathy and respecting family time during the holiday.
Learn how you can offer personalized experiences with dynamic content using Iterable.
2. Customer Communication Is Expanding Across Channels
When it comes to e-commerce trends going into 2025, brands must diversify their presence to meet consumers across different marketplaces and channels they frequent. This growing imperative to meet customers where they are is why more than 80% of Iterable customers ran campaigns across multiple channels during the 2024 holiday season.
Iterable’s Cyber Week data reveals notable gains in total message volume across all channels:
- SMS Message Volume increased 68% on Black Friday.
- Mobile Push Volume grew 25% on Black Friday.
- In-App Message Volume increased by 22% on Cyber Monday.
- Web Push Volume rose by 43% on Cyber Monday.
However, this surge in mobile messaging contrasts with email trends. On the Iterable platform, email volumes have historically averaged year-over-year increases of 40% on Black Friday and Cyber Monday since 2022. This year, however, email sends grew by a more modest 8%.
On the other hand, 59.5% of Thanksgiving purchases this year were made using mobile phones, indicating that mobile-friendly platforms, including social media sites, will be more important than ever.
The big takeaway here is that brands aren’t simply sending more messages—they’re strategically shifting their communication mix toward channels where customers are most engaged.
Learn more about building a stellar SMS strategy to become a savvier cross-channel marketer.
3. Promotional Messaging Takes Center Stage in Mobile Engagement
While mobile will continue to be a key driver of seamless cross-channel shopping experiences, the way brands use mobile communication is headed in a clear direction for 2025. Over the holiday weekend, a staggering 95% of messages sent via mobile channels were marketing-related rather than transactional.
This data shows that mobile real estate is being reserved for relevant, personalized promos rather than shipping notifications or other transactional messages.
When considering the overall rise in mobile message volume from our previous point, we expect marketing promotions to become more creative as retailers and e-commerce brands seek to stand out with consumer audiences. And, as you’ll see in the next section, AI has now entered the chat to help make marketing campaigns run seamlessly.
To create better customer experiences across the lifecycle, make sure you have the top 10 mobile marketing campaigns every brand needs.
4. AI Becomes the Backbone of the Customer Experience
As traditional search volume continues to decline and more AI technology is used to interact with shoppers in real time, we expect AI to become even more integral to the customer experience.
In fact, 80% of Iterable customers utilized AI over the Black Friday Cyber Monday weekend, collectively sending over 50 million AI-powered campaigns. Based on these findings, 2025 could be the year that retailers use AI not only to boost immediate sales but also drive long-term success at scale.
Marketers today are leveraging Iterable’s AI Suite to predict customer behaviors, optimize their journeys, and deliver highly personalized messages. In the race for customer attention, they’re not just keeping up—they’re building lasting relationships with customers well beyond the holiday season.
For more information on how to do less and strategize more, download our guide to succeeding in the AI marketing era.
5. Value-Seeking Shoppers Are Here To Stay
Many e-commerce stakeholders thought that value-seeking shoppers were just an aftermath of the financial constraints resulting from the COVID-19 pandemic. However, the trend of bargain-hunting and opting for “dupes” and affordable alternatives is here to stay.
A survey by EY found that 48% of customers do not see brands as a key consideration when buying something. They’d instead purchase a more affordable option.
Similarly, a recent report by Incisiv and Relex Solutions revealed that 93% of customers expect more value from their purchases, and 84% report pricing as an important factor in their buying decisions. The same report also highlighted that 87% of retailers have resorted to aggressive discounting tactics to retain customers and maintain sales.
If this data is any indication, strategies focused on affordability are becoming increasingly prevalent. In 2025, as more and more customers seek value and affordability, retailers must be prepared to offer competitive prices and promotions.
Want a sneak peek into your customers’ minds? Learn how to collect and use qualitative customer data to get these insights.
6. The Cost and Challenges of Returns Will Continue to Grow
While Black Friday and Cyber Monday are busy times for online retailers, their aftermath is just as hectic with holiday season returns coming in. According to the National Retail Federation (NRF), the cost of returns is projected to reach $890 billion in 2024.
To tackle this challenge, 81% of retailers have started charging for at least one type of return in the last 12 months. However, the NRF reports that return fees impact the customer experience in the long run, as 76% of consumers consider free returns a key factor in where they shop, and 67% say a negative return experience would discourage them from shopping with a retailer again.
Since customers like to use the return option as a safety net while shopping online, this trend will continue into 2025. Retailers must find cost-effective solutions that balance customer expectations against rising costs.
Want to keep your customers satisfied? Explore these 5 steps to boosting loyalty and driving growth.
The Future of Retail and E-Commerce Marketing
The data from this year’s Cyber Week performance offers valuable insights into retail and e-commerce trends. As we move into the new year, marketers must prioritize cross-channel strategies, mobile-first approaches, and personalized, AI-driven marketing to stay competitive and resonate with the modern consumer, both in 2025 and beyond.
Interested in upgrading your cross-channel marketing platform? Give a holiday gift to your team and schedule a custom demo of Iterable today.
