Our most recent Retail Hive Café saw a group of retailers and experts discuss personalisation. It struck me that personalisation is a broad church; it means different things to each retailer and varies by company and product type.

Personalisation isn’t just about clever algorithms or customer data platforms. It’s about purpose, context, and delivering actual value to customers. Successful personalisation paves the way for loyal customers, authentic engagement and of course, upsell and cross-sell.

Personalisation: More Than Just a Name on an Email

Retailers are leveraging various types of personalisation:

• One-to-one CRM-based approaches for known customers
• One-to-many strategies for broader segments
• Anonymous behavioural personalisation for new or unregistered users

But a powerful reminder emerged from our conversation: “Personalisation without purpose is pointless.”

Retailers must focus on enhancing the customer experience—not just conversion rates—through intelligent, intent-driven recommendations. For example, introducing serendipity into product suggestions prevents the experience from becoming too pre-planned. A sense of discovery matters, as many shoppers will buy products they were not necessarily planning to!

The Strategic Balancing Act

One of the biggest challenges discussed was deciding the right message or treatment for each customer at the right time. The tools to make instant, precise personalisation decisions are still evolving, and many retailers find themselves limited in agility and accuracy. So, retailers must walk a tightrope between:

• Short-term metrics like basket size or click-through rates
• Long-term goals, such as customer retention and lifetime value

A key takeaway was that retailers should embrace a “test and learn” mindset. Not every experiment will succeed—and that’s okay. The value lies in learning what works and what doesn’t, and evolving fast. Over-personalisation can backfire. Bombarding customers with overly specific content or recommendations can lead to disengagement and even returns. Finding the sweet spot is critical.

Overcoming Organisational and Operational Roadblocks

Several organisational challenges surfaced during the discussion:

• Many businesses lack clarity around the goals of achieving a single customer view or why personalisation really matters
• Large retailers often face siloed departments, making it hard to execute coherent personalisation strategies
• There’s a growing interest in composable Customer Data Platforms (CDPs), which allow greater flexibility while preserving data integrity. However, the group warned against investing in complex solutions without clear use cases and well-defined business needs

As new technologies flood the market, the consensus was to avoid the ‘shiny object syndrome’. Instead of chasing hype, businesses should focus on strategic planning and ensuring tech investments deliver real, measurable value.

Data and AI: Not Just More, But Better

AI-driven personalisation is promising—but it’s not magic. Discussion participants stressed the importance of:

• High-quality, clean data
• Human oversight to contextualise and interpret results correctly

Retailers often focus on quick wins, like upselling. In contrast, many brands prioritise long-term relationships, making it essential to align personalisation strategies with broader business goals.

One Size Doesn’t Fit All

Personalisation strategies vary widely across industries. For example:

• A washing machine buyer expects a very different journey than someone shopping for menswear
• A furniture retailer might need better contextual data to suggest relevant add-ons, like lamps or rugs, based on the style and purpose of a customer’s original purchase

It’s also vital to personalise by marketing channel. Relying solely on CRM data limits the opportunity. The discussion highlighted the importance of linking influencer campaigns, paid media, and content to build a more seamless, cross-channel experience.

Final Thoughts: Smart Personalisation Is Purpose-Driven

Retailers know that personalisation can no longer be generic or reactive. The future lies in intelligent, strategic, and purposeful experiences powered by data, creativity, and cross-functional collaboration. As the group discussion made clear, those who win at personalisation in 2025 won’t just be the most tech-savvy—they’ll be the most customer-aware.

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