Customer engagement in 2025: Focus on LTV and data literacy

From strategic misfocus to dataops, genAI and a renewed effort in personalisation – Medialab’s Mike Hall and Dotdigital’s Juliette Aiken give us their thoughts for the year ahead. As featured in Econsultancy.

Just as the past couple of years have seen many brands, including pureplay digital businesses, seek a balance between their brand and performance marketing budgets, so, too, marketers are evaluating their efforts when it comes to acquisition vs. retention.

The premium placed on first-party data reflects not just its growing utility in media planning, but its value in shaping engagement strategies and personalisation.

But what’s the state of play for CRM and customer engagement right now? What skills do marketing teams possess? And what should they prioritise in 2025?

We spoke to Mike Hall, Head of Retention at independent media agency Medialab, and Juliette Aiken, CMO at customer experience platform Dotdigital. Here’s what they had to say…

What’s the elephant in the room for customer engagement in 2025?

An imbalance between acquisition and retention

Mike Hall, Head of Retention, Medialab:

The elephant in the room for customer engagement is the imbalance between acquisition and retention.

Too many organisations focus on bringing in new customers while neglecting the work required to keep them. A “recruit to retain” mindset is critical for sustainable growth. Brands that prioritise retention, measured by lifetime value (LTV), consistently outperform their peers. LTV is more than a financial metric – it’s a reflection of loyalty, satisfaction, and the overall health of a business.

To address this, businesses need a clear customer lifecycle strategy. Success comes from delivering personalised experiences across web, email, SMS, in-app, and direct mail. Personalisation isn’t just about using someone’s name – it’s about providing relevant, timely, and valuable interactions at key points in their journey.

Most marketing teams are struggling to effectively harness data

Juliette Aiken, CMO, Dotdigital:

The biggest challenge facing brands in customer engagement today is a glaring data disconnect.

While the world is swimming in zettabytes of information, reaching 147 zettabytes this year to be exact, most marketing teams are struggling to effectively harness data. Dotdigital’s recent Hitting the Mark report revealed that only 46% of brands collect zero-party data, and a mere 16% actually communicate the value of sharing that data to consumers.

Marketing teams must boost data literacy and streamline information sharing across their organisations to foster more effective decision-making. Many businesses are sitting on a heap of nearly useful data, that without a clear purpose or structure is practically useless.

How will generative AI impact customer engagement?

Productivity benefits, and CRM as personalisation fulcrum

Mike Hall, Medialab:

Generative AI is already transforming customer engagement by cutting production times, automating workflows, and enabling smarter recommendations and predictions.

Martech platforms are enhancing their data capabilities, improving web integrations with CRM systems, and embedding on-site personalisation as part of engagement strategies. These tools enable brands to engage faster and more effectively, delivering value at every touchpoint.

Not just relevant, but timely and emotive experiences

Juliette Aiken, Dotdigital:

Generative AI will revolutionise customer engagement by transforming predictive analytics and hyper-personalisation. With solid data foundations, brands can use AI to anticipate preferences and behaviours, enabling marketers to deliver not just relevant, but timely and emotive experiences.

To bring this alive, imagine a retail chatbot that understands a customer’s historical patterns to proactively recommend products they’ll love. This highlights a skill gap that marketers need to bridge – the ability to not only manage AI tools but to guide them both ethically and creatively.

What should we stop, start, continue?

Stop: chasing third-party data

Juliette Aiken, Dotdigital:

What should we stop? Relying on siloed data and chasing after third-party sources.

Despite Google’s cookie-shaped U-turn the market continues to show signs of a shift away from third-party tracking, so it’s critical for marketers to focus instead on building transparent and responsible data collection practices that consumers can trust. This means leaning into zero-party and first-party data collection, while always clearly communicating exactly how their data will be processed, what they can expect to receive (and with what frequency). This amounts to a clear value exchange between brand and consumer.

Stop: overcomplicating tech stacks

Mike Hall, Medialab:

Stop: Overcomplicating tech stacks or chasing trends without a strong lifecycle foundation.

Start: investing in data visualisation

Juliette Aiken, Dotdigital:

What should we start? Investing in data visualisation skills. It’s not just about collecting data, but also about interpreting and communicating it across the organisation and beyond.

Marketers don’t just need to understand data better; they need to tell its story. Brands of wearable tech – such as Apple or Fitbit – turn a user’s heart rate and sleep patterns into a visual story that they can use to share with friends. For marketers, data visualisation creates opportunities to convey insights that resonate with audiences and foster deeper engagement. The best bit? You can use data your organisation is already collecting.

Start: making retention a strategic focus

Mike Hall, Medialab:

Start: Making retention a strategic focus, using LTV as a key metric, and treating personalisation as a priority.

Continue: ‘moments-based marketing’

Juliette Aiken, Dotdigital:

And continue? Focusing on personalised, moments-based marketing. The future of customer engagement is about delivering seamless, contextually relevant interactions that respond to moments in the customer journey. Personalisation done right will deepen loyalty.

Do you have an outrageous prediction or safe bet you want to share?

Marketing’s ‘personalisation renaissance’

Juliette Aiken, Dotdigital:

Outrageous prediction? Marketing’s ‘personalisation renaissance’.

In 2025, we’ll witness a full-blown personalisation renaissance. However, it won’t just be about tailoring content; it will be about connecting channels, experiences, and physical spaces. Hybrid retail will be at the forefront, with stores evolving into community-driven hubs that drive e-commerce forward. These spaces won’t just enhance brand loyalty but encourage user-generated content.

CRM at the centre

Mike Hall, Medialab:

The safe bet? Brands that focus on retention will outperform their competitors.

The bold prediction? CRM will evolve into the central hub for customer engagement, seamlessly connecting data and tools to deliver consistent and impactful experiences. Success in 2025 will come from combining technology with clear strategies to create meaningful customer connections.

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