Retention is the New Growth: How Identity-Powered Marketing Drives Profitability in 2025

In today’s high-stakes digital landscape, retention isn’t just a smart strategy, it’s a necessity. With ad costs soaring and third-party cookies on the brink of extinction, traditional marketing tactics are yielding diminishing returns. The brands leading the way in 2025 are those investing in truly knowing their customers, and keeping them engaged.

Our latest report, The Retention Engine, unpacks exactly how forward-thinking brands are using identity-powered marketing and behavior-based triggers to build stronger, longer-lasting customer relationships, and drive revenue like never before.

Why Retention Strategies Fail (And How to Fix Them)

All too many brands struggle to recognize returning visitors, even their best customers. Why? Because technical gaps in device recognition, cookie clearance, and browser updates mean previously engaged shoppers show up as strangers. Key causes of anonymous traffic include switching devices or browsers, logged-out sessions, ad blockers or privacy tools and mobile vs. web disconnection.

This “invisibility gap” makes it nearly impossible to deliver personalized, timely messaging, and it’s costing brands millions.

But, imagine knowing exactly who’s visiting your site, even when they’re not logged in? That’s what identity resolution delivers. By tying anonymous visitors to real customer profiles using first-party data, marketers can deliver highly relevant experiences the moment a shopper re-engages. 

Identity resolution unlocks the ability to deliver lifecycle-triggered messages, hyper-personalized content across email and text and improved segmentation beyond loyalty members This strategy turns passive browsers into active buyers, again and again.

Download: The Retention Engine 2025

Reach Beyond the Loyalty Program

Not every shopper opts into your loyalty program. In fact, only 25% of consumers are members of loyalty programs for their favorite brands. But that doesn’t mean they’re not worth retaining. With identity-powered marketing, brands can reach this untapped segment with contextual engagement based on real-time behavior. No loyalty enrollment needed, just smart recognition and timely outreach.

Forget batch-and-blast. The brands winning today are using triggered messaging to meet customers at the exact moment of intent—from cart abandonment reminders to post-purchase upsells and replenishment nudges. This approach increases engagement, drives conversion, and enhances customer satisfaction. In other words, personalization equals performance.

From Opens to Outcomes: Scale Your Strategy with AI

Layer AI onto identity resolution and you get a retention machine that gets smarter over time. From predictive segmentation to automated journey optimization, AI helps marketers prioritize high-value segments, test and iterate creative strategies and maximize revenue with minimal manual effort. The result? A high-performance engine that never stops improving.

Traditional metrics like open rates and click-throughs don’t tell the full story. The new gold standard? Revenue attribution. Wunderkind’s identity-powered strategy allows brands to directly link triggered experiences to measurable outcomes. In fact, many Wunderkind clients see 6-11% of total digital revenue driven directly from these personalized, identity-based campaigns—often ranking as a top 3 revenue channel.

Get the Guide and Turn Your Traffic Into Lifelong Customers

Retention isn’t about sending more messages, it’s about sending the right message, at the right time, to the right customer. Brands that master this will own the future of loyalty. 

Download The Retention Engine 2025 to learn how to leverage identity resolution, unlock 50% more actionable site traffic, drive more revenue per message with triggered journeys and harness the power of  cross-channel orchestration.

Download: The Retention Engine 2025

Author

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Danny O'Reilly

Danny O’Reilly is a seasoned writer specializing in the martech space with a focus on zero- and first-party data, personalization and loyalty. Also an avid runner with over 12k Instagram followers, Danny aims to inspire, educate and entertain through his thought leadership and copywriting skills. You’ll find his work across the Wunderkind website, thankfully. Enjoy.