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Customer engagement strategies in retail: 5 ideas you can put into practice today

October 29, 2026

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retention-loyalty

brands-retailers

One of the biggest challenges of running a retail business today is to engage customers between transactions: your customers visit your store when they need to buy something, but go dormant in between visits.

However, regaining some of that engagement can make a difference for your activity, since it can lead to more frequent visits and sales, and larger baskets. So, how do you make sure that your engagement strategy works?

In this article, we go over some real-life examples of customer engagement strategies in retail that brought results to the retail businesses that implemented them, with tips and ideas that you can use for your brand as well.  

👀 Looking for a way to boost your engagement? Take a look at LoyaltyPlay for retail.

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What is a customer engagement strategy?

A customer engagement strategy is a framework that outlines how a brand will interact with its audience at every stage of the customer lifecycle, from initial discovery to post-purchase support.

While customer acquisition focuses on driving transactions, an engagement strategy is designed to build an ongoing relationship that maximizes Customer Lifetime Value (LTV) and brand loyalty.

An effective customer engagement strategy sits on a few core pillars: 

  • Real value: Offer something useful or exclusive in exchange for your customer's engagement.
  • Proactivity: Deliver what your customers need before they even realize they need it. For example, try anticipating your customers’ needs by reaching out with relevant solutions and recommendations.
  • Consistency: Provide consistent messaging and a seamless experience on all the channels you use – be it your physical store, website, app, social media, or email.
  • Two-way dialogue: Create a way for customers to reach your brand rather than relying on one-way broadcast messaging.

Customer engagement in retail: Why is it important?

Customer engagement in retail is important because it’s tied to revenue: the more your customers engage with your brand, the more likely they are to buy something from you. In fact, customers are willing to pay 5% more, and to shop again at the same place if a brand offers a positive shopping experience.1

However, today, customer engagement walks a delicate balance, because brand loyalty is thinner than ever: 60% of customers admit not to pay attention to brands, and actually 67% of them switch to a cheaper brand when available2. Moreover, for 52% of customers, one bad shopping experience is enough not to interact with that brand again3.

customer engagement strategy, brand loyalty

In its Global Engagement Index1, SAP uses an interesting term: the “Engagement Divide,” referring to the distance between what customers need and what brands can offer. 

Going through their research, it’s striking to note that customers and brands seem to travel on two separate tracks. For example:

  • 77% of brands say that they have a close personal relationship with their customers, but 48% of customers believe that brands don’t understand them as a person.  
  • 75% of customers are put off by disorganized brands, but 78% of brands believe their customer experiences are seamless. 

5 real-life customer engagement strategies that drove results in retail

To better understand how the right customer engagement strategy can make a difference for your brand, let’s go over some real-life examples where brands succeeded in turning customer engagement into tangible results – and what tips you can gather from them. 

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1. Transform transactional moments into discovery engines

Add relevant product recommendations to moments when customers are already ready to buy, like back-in-stock alerts, to increase engagement and basket size.

Transactional moments are high-engagement moments by definition, because people are ready to buy from you. Pairing this interest with a discovery engine cannot only increase engagement, but also the basket size. 

For example, 24S is a luxury fashion e-commerce platform that turned its “[Item] is back in stock!” email into a whole engine of discovery and sales. 

When an out-of-stock item returned, the alert was bundled with four AI-selected product recommendations based on the user's specific browsing history. According to Braze, this approach resulted in a +7% increase in add-to-cart rates.4

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✅ Why this engagement strategy works

If your customers have already set an alert to know when your products are available, this means that they’re ready to purchase – and likely do it immediately after getting the email. Pairing this interest with related suggestions can increase engagement with your brand, because customers will browse through suggested items, and also increase the chances of a bigger cart. 

Other transactional moments you can turn into discovery moments include:

  • Order confirmations: Suggest complementary items or accessories that complete the purchase.
  • Pre-checkout: Show “Frequently bought together” suggestions, or something to add to reach free shipping.
  • Price-drop and low-stock alerts: Pair the alert with similar items in case the first choice sells out.
  • Returns and exchanges: Offer alternatives that fit what they were looking for.
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2. Favor interactive over passive content

Give customers something to do, not just something to see, such as filters, quizzes, or mini-games, to keep them engaged with your brand between purchases.

Last year, Sephora launched a new filter on TikTok, which allows people to spell their name using their favourite Sephora product. The filter was a huge success, and the original TikTok video that launched it totalled 208K engagements.5 

This is a perfect example of interactive content: you don’t just show your customers something, but you actually make them interact with it. You can apply this strategy in many different ways, for example, through quizzes, mini-games, or social media contests.

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✅ Why this engagement strategy works

Today, people are flooded with content, and most of it goes unnoticed. However, giving your customers something to interact with – whether it is a filter or a quiz – can increase their engagement with your brand in between purchases and turn that engagement into future sales.

You can apply this strategy in many ways, such as:

  • Quizzes: Build a product finder or style quiz that ends with personalized recommendations.
  • Polls and voting: Let customers vote on upcoming colors, flavors, or collections, so they feel part of the launch.
  • Social filters and challenges: Create a branded filter or hashtag challenge that customers can share.
  • Contests and giveaways: Invite customers to post photos with your products for a chance to win a prize.
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3. Personalize offers with the data you already have

Use the data you already collect, like purchase history and in-app behavior, to send each customer relevant offers instead of the same message to everyone.

Personalizing the experience and the offers to your customers’ likes has become a key strategy to stand out, and customers expect it as well. In fact, 37% of consumers feel disappointed that brands don’t personalize content to their needs.3 

Sally Beauty, an international retailer of beauty products, used first-party data, such as in-app behavior, shipping preferences, and purchase thresholds, to segment customers and send targeted offers in its app. According to Airship, active users grew 7% year over year, and the app’s share of total e-commerce revenue rose from 12% to 22%.6

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✅ Why this engagement strategy works

You probably already collect more data than you use. Preferences let you send each customer something relevant, instead of the same message to everyone. For example:

  • Purchase history: Recommend complementary products, send reorder reminders, or highlight offers in the categories they buy most.
  • In-app behavior: Use viewed items, wishlists, and abandoned carts to trigger back-in-stock alerts or cart reminders.
  • Location: Issue country-specific offers around regional holidays and cultural trends, or promote events at their nearest store.
  • Preferred channel and timing: Reach customers on the channel they use most (email, push, SMS) and at the times they tend to open your messages.
  • Loyalty status and balance: remind members how close they are to unlocking their next reward.

If you want an even more accurate picture, you can also ask customers directly, through quizzes or preference settings (zero-party data).

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4. Treat customer support as an engagement channel

Strong support builds loyalty and word-of-mouth, so treat every interaction as a chance to engage customers, not just to solve a problem.

A customer engagement strategy isn’t effective if it isn’t paired with strong customer support. As mentioned above, one bad shopping experience is enough for a lot of people not to interact with a brand again, and customer support plays a big part in this. 

One great example of how customer support can turn into an engagement strategy is Chewy, the e-commerce store for pet supplies. Chewy’s support is known for sending spontaneous gifts to customers, as well as for its empathetic refund policies (Chewy refunds unopened pet food, encourages customers to donate it to shelters, and sends handwritten condolence cards and flowers). 

These gestures turned their customer experience into an organic marketing channel, and through spontaneous social media posts and word-of-mouth, Chewy established itself as one of the biggest e-commerce companies in the sector.7

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✅ Why this engagement strategy works

A bad customer support experience puts off customers, while good customer support can become one of your biggest strengths. A good experience with your support can translate into positive reviews, word-of-mouth, and organic recommendations, which are a valuable marketing channel. 

For example, you can:

  • Share customer testimonials: Turn positive support interactions and reviews into social posts, email content, or product page quotes, with the customer’s permission.
  • Turn frequent support questions into content: Use the questions your team answers most often as tips on social media, in emails, or in short how-to videos.
  • Send spontaneous gifts: Surprise customers after a problem, a milestone, or a loyalty anniversary with a small gift or bonus points.
  • Follow up after resolving an issue: Check in a few days later to confirm everything is working, and share a relevant recommendation or offer if it makes sense.
  • Invite feedback and act on it: Ask customers what could be better, and tell them when you’ve made a change based on their input.
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5. Gamify your loyalty program rewards

Add games and challenges to your loyalty program so customers can earn rewards without spending, giving them a reason to come back between purchases.

Loyalty programs in retail are popular, but most of them are tied to purchases, so you issue rewards when people buy something from you. Gamifying your rewards means giving customers additional ways to earn that don’t depend on spending.

For example:

  • Coupon wheels and scratch-offs for a chance at a discount, bonus points, or a voucher.
  • Mini-games that turn a reward into something playful. 
  • Daily check-ins and streaks, which reward customers for opening the app regularly, with bonuses for consecutive days. 
  • Progress bars toward rewards.
  • Product quizzes to help customers find the right product while earning points.

If you want to go further, you can bring in actual mobile games. KAUCHE, a social commerce Japanese app, added LoyaltyPlay, Mistplay’s rewarded gaming hub, so users could earn rewards through game missions. The first month of the campaign delivered the highest revenue to date.

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✅ Why this engagement strategy works

Games give customers a reason to open your app that has nothing to do with spending, which keeps your brand present between purchases without adding pressure to buy. Rewarded gaming takes this even further, because your shopping app becomes a place for discovering new games, rather than just shopping. 

How to develop a meaningful engagement strategy 

The examples above come from very different brands, but the way they got there has a lot in common: they started from a specific gap in their customer relationship and picked the tools that would fill it. If you’re building your own strategy, these steps can help you do the same.

  1. Map where your customers lapse. Look at the customer journey and find the moments when engagement drops. These gaps are where a new touchpoint will have the most impact, and they may be different from retailer to retailer.

  2. Start from what your customers already do. Use the data you have to see which channels and formats your audience already likes. Customers who play games, answer quizzes, or follow your brand on social media are showing you where they’re willing to spend time, so build on that instead of asking them to adopt a new habit.

  3. Decide what customers get in return. Every engagement activity asks for a little of your customers’ time or attention, so each one needs a clear benefit. For example, a reward, a useful recommendation, or simply something enjoyable. If the value isn’t obvious to them, engagement will likely fade.

  4. Measure engagement and revenue together. Opens and clicks show whether customers are paying attention, but they don’t tell you if the strategy is paying off. Track metrics like repeat purchase rate, session frequency, average order value, and LTV, and compare them with a group of customers who weren’t part of the initiative.

👀 Read also: From ideas to implementation: How to create a successful loyalty program

Conclusion

Engaging customers between purchases comes down to giving them a reason to come back when they have nothing to buy, whether that’s through personalized offers, interactive content, or rewarded play.

Gamified rewards are a direct way to do that, because they give customers a reason to open your app that doesn’t depend on spending. That’s what Mistplay’s LoyaltyPlay was built for. It’s a rewarded gaming hub where your customers discover and play mobile games and earn your own rewards, adding a fun way to stay connected to your brand between purchases.

Want to see how it could fit your retail business? Get in touch with us, and we’ll walk you through it.

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Sources:

  1. SAP, 2026 Global Engagement Index
  2. Deloitte, Retail 2026: Consuming Differently in a Rapidly Transforming Sector, April 2026
  3. Emplifi, Top customer experience statistics to know in 2026, August 2026
  4. Braze, 24S boosts sales with AI-powered personalization
  5. RivalIQ, Sephora’s Marketing Strategy: What Sets the Beauty Giant Apart in 2025, May 2025
  6. Airship, How Sally Beauty and CosmoProf turned data and personalization into more opt-ins and higher app revenue
  7. CommerceNext, How Chewy Turned Customer Care Into Its Biggest Competitive Advantage, July 2026

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