What is the Growth Challenge?
Growth Is Harder to Earn
Retail leaders widely agree the current environment is more challenging than
the previous year. Yet the response across the industry has not been defensive.
63 %
Instead of reducing investment, organizations are reallocating budgets toward
initiatives that directly impact customer retention, revenue growth, and
operational efficiency.
Most companies expect marketing budgets to increase in the next fiscal year,
Believe the economic environment in 2025 is more challenging than in 2024.
while very few anticipate decreases.
The message from leadership teams is clear:
Growth investments are still happening—but expectations for measurable
business impact have increased significantly.
As growth becomes more difficult and customer acquisition costs rise, retail
organizations are placing greater emphasis on retaining and growing existing
64 %
customer relationships.
Implication for leaders —
Marketing and digital investments must now demonstrate:
•
Clear revenue contribution
Expect marketing budgets to increase in the next fiscal year.
•
Measurable ROI
•
Customer retention impact
•
Operational efficiency gains
Organizations that cannot demonstrate impact will struggle to maintain funding.
The Loyalty Growth Playbook
5
Powered by FlippingBook