Consumer Behavior

What's coming in retail: 4 consumer insights to watch for

Consumers are cautious as they watch for impacts from economic conditions, but consumers remain willing to spend their money with retailers who offer personalized experiences that elevate the customer.

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April 29, 2025 by Joanna Clark-Simpson — Head of Consumer Research and Marketing, PissedConsumer.com

When it comes to consumer trends, 2025 brings increased expectations for retailers. Shoppers want more, and if retailers want to thrive, they need to pay attention to consumer insights.

Consumer feedback points toward a greater desire for personalization, convenience and sustainability. Trends also point toward increasing wariness of disruptions, deception and potential scams. Here are the current trends in consumer behavior and how your business can meet those expectations.

Customers demand outstanding customer experience

Customer service has always been a big deal, and companies already know how damaging negative online reviews and interactions can be. According to the best and worst customer service report by PissedConsumer, the best customer service resolved over 70% of customer complaints, while companies from the bottom of the list helped only in 25% of cases.

E-commerce is expected to grow up to 39% in the coming years, and customers are discerning about where and how they spend their money. So, if your company isn't focused on creating a streamlined and supported customer service experience, you're likely losing customers throughout the retail journey.

Customers often start and finish their shopping journey online, but not always. In certain fields, like homeware and beauty products, they like a tactile experience when shopping in stores and expect knowledgeable customer service representatives to be available. Alternatively, when shopping for clothing, electronics, and toys online, customers expect a smooth experience as they browse, compare items, check out, and have their items delivered.

Doesn't matter which way your consumers prefer, ensure a seamless shopping experience with consistent branding, anticipating the needs of your customers, and gathering feedback.

To avoid complaints, create and stand by a delivery guarantee and be transparent about shipping fees and timelines. Allowing customers to shop and finalize purchases on their own terms reduces the number of baskets abandoned right before purchase.

Customers expect personalization

The top consumer trend — an ever-increasing bespoke experience — is at least partially driven by artificial intelligence. Customers want to feel like companies "know" them and can tailor their shopping experiences to their unique needs. AI-integrated experiences make this possible for every level of retailer.

The best blend of customer service is personalized at each stage of the customer's journey. This may mean using AI bots early in the process for suggestions and quick answers, but it is important to create human-to-human interactions as well as more complicated issues arise. Customers want the assurance of working with a real person in hard cases, so it's imperative to balance the convenience and scalability of AI with the personalization of human customer service experts.

If you're worried about customers feeling out of sorts about AI-assisted shopping and customer service, don't be. Overall, 44% of shoppers are interested in integrating AI technologies into their shopping experience, but 54% of millennials and 69% of Gen Z consumers are ready for AI-assisted shopping.

Closely examine your customer service offerings on all levels. If you haven't already found ways to leverage AI in your retail platforms, now's the time. Work with your customer service team to improve interactions with consumers on the harder issues. Look for opportunities to tailor the customer experience while shopping — perhaps with suggested looks or companion purchases — and then continue to benefit from AI when customers need customer service support.

Customers respond to transparency

Forty one percent of customers will abandon their cart if delivery fees are too high. Another 30 percent will leave their cart and click away from your site if they discover unexpected fees or costs that have been hidden until checkout.

Not being fully transparent about costs is a great way to lose sales and lose customers. Customers won't pay more unless they feel it's worth it. If you have high shipping costs or extra fees, be transparent about it and explain to customers why those expenses are worth it.

Customers are looking for sustainability

Customers may not be willing to pay a premium for shipping, but they are willing to pay more for sustainability. According to PwC, customers are looking hard at companies and opting to work with retailers who make sustainability a priority.

In fact, 85% of consumers report experiencing disruptive effects of climate change in their lives, and overall, four-fifths of customers are willing to pay 9.7% more for items that are locally sourced or sustainable.

Customers want to know the impact of what they are buying. If your items are locally sourced or produced in ways that impact sustainability, market that feature heavily.

If you can't market directly on the sustainability of your retail items or production, inform customers about the sustainable efforts of your company through donations and special programs.

2025 will present challenges and opportunities for retailers. Consumers are cautious as they watch for additional impacts from inflation and economic conditions, but consumers also remain willing to spend their money with retailers who value their patronage, offer streamlined, personalized experiences that elevate the customer, and offer assurances of sustainability.

About Joanna Clark-Simpson

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Joanna is the Head of Consumer Research & Marketing at PissedConsumer.com, a consumer review website. In her role, she analyzes consumer experiences to gain a deeper understanding of consumer behavior. Using these insights, she provides consumers with practical tips on how to avoid common issues with companies and make informed purchasing decisions. Additionally, she shares marketing advice with businesses to help them improve their strategies and strengthen their brand image.

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