Top Marketing Strategies Retailers Spend half of their annual budget on to drive ROI
- Jonathan Soberanes
- Nov 10
- 3 min read
Every retail manager and business owner knows the pressure of proving marketing ROI. While many focus on open rates or social media likes, the real story lies deeper in how retailers allocate their budgets. Recent industry reports reveal that 70-90% of a retailer’s annual marketing spend concentrates on just five interconnected strategies. These strategies form a powerful flywheel, with Social Media, Email, Loyalty Retention, and CRM at the center, turning costly clicks into lasting customer value.
This post breaks down the Top Five Marketing Strategies for Retailers in 2025 and explains exactly where your email marketing fits in this bigger picture.
Retailers invest heavily in targeted marketing to attract and retain customers.
Digital Advertising and Retail Media: The Budget Giant
Retailers dedicate about 25-30% of their marketing budget to digital advertising and retail media networks. This is the "Get the Click" phase, where the goal is to attract new customers actively searching or shopping online.
What’s included?
Paid Search (Google Ads): Using tools like Performance Max and Shopping Ads, retailers capture high-intent shoppers at the exact moment they look for products.
Retail Media Networks (RMNs): Platforms like Amazon Ads and Walmart Connect use first-party data to target shoppers right at the point of purchase.
Creating helpful, reliable, people-first content
Why it matters for email marketers
The ad team spends a significant portion of the budget to get a single click. Your role is to make that click count for years. Email marketing and CRM turn these expensive leads into loyal customers by:
Sending personalized welcome series
Offering exclusive deals to new subscribers
Building long-term engagement through segmented campaigns
By focusing on customer lifetime value, you help retailers get the most out of their biggest marketing spend.
Social Media and Influencer Marketing: Building Awareness
Social media and influencer marketing take up about 15-20% of the retail budget. This strategy focuses on discovery and impulse buying, especially among younger shoppers.
Key platforms and tactics
TikTok and Instagram drive social commerce and product discovery.
Influencers build trust, with 72% of Gen Z and millennials relying on their recommendations.
How email fits in
Social media often sparks the first sale. Email marketing then takes over to:
Welcome new customers with tailored content
Encourage repeat purchases through product recommendations
Nurture relationships with loyalty programs
This combination turns social buzz into steady revenue.
Though smaller in budget share, content marketing and SEO remain essential. Retailers invest in blogs, videos, and guides to attract shoppers searching for information.
What works well?
Product tutorials and how-to guides
Seasonal buying advice
SEO-optimized content to improve search rankings
Email’s role here
Email campaigns can promote valuable content, keeping customers engaged and informed. For example:
Monthly newsletters featuring new blog posts
Educational series that highlight product benefits
Invitations to webinars or live demos
This approach builds trust and keeps your brand top of mind.
Loyalty Programs and Retention Marketing: Keeping Customers Close
Retention marketing, including loyalty programs, accounts for about 10-15% of the budget. It focuses on rewarding repeat customers and increasing their lifetime value.
Effective tactics
Points-based rewards systems
Exclusive member-only offers
Early access to sales and new products
Email marketing’s impact
Email is the primary channel for loyalty communication. Use it to:
Remind customers of points and rewards
Announce special promotions
Share personalized product suggestions based on past purchases
This keeps customers engaged and coming back.
Retailers allocate 5-10% of their budget to data tools and analytics. This investment helps them understand customer behavior and improve marketing effectiveness.
What’s involved?
Customer data platforms (CDPs)
Attribution models to track ROI
A/B testing and campaign analysis
How email marketers benefit
Data insights allow you to:
Segment your audience more precisely
Test subject lines and content for better engagement
Measure the impact of email on sales and retention
Using data smartly makes your campaigns stronger and more profitable.
Retailers focus their budgets on these Top Five Marketing Strategies for Retailers because they work together to attract, convert, and keep customers. Email and CRM are not just one piece of the puzzle—they are the hub that connects every strategy and drives long-term growth.
If you want to boost your marketing ROI in 2025, focus on how your email campaigns support these strategies. Turn every click into a loyal customer and make your marketing budget work harder.
Start by reviewing your current email workflows and look for ways to:
Personalize messaging based on acquisition source
Integrate loyalty rewards into your campaigns
Use data to refine targeting and timing
Your newsletter is more than just an update—it’s the most profitable asset in your marketing toolkit.
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