We’re always interested in a new Data & Marketing Association (DMA) UK report, and last week they released their 2025 Customer Engagement Future Trends Report.
Their research was conducted in September-October 2024 via an online survey of 320 respondents, nationally representative of UK adults, and 200 marketers, covering a range of brands and business models. This year, the DMA didn’t pick the three biggest trends to examine, rather the ones that feel most relevant in today’s climate, no pun intended.
We’ve summarised them here, but the full report is definitely worth a look:
1. AI, efficiency vs effectiveness
There’s a tug-of-war happening: should AI focus on doing things faster and cheaper (efficiency) or actually driving business growth and better results (effectiveness)?
AI is great for automating tasks like content creation, social media management, and customer service chatbots. These uses save time and money, music to the ears of anyone dealing with tight budgets.
But AI also opens doors for hyper-personalised campaigns, smarter customer segmentation, and predictive analytics – all of which can boost revenue. According to DMA data, personalised campaigns are 18% more effective than average.
Interestingly, marketers are feeling the efficiency benefits more than the effectiveness ones right now – with a striking 26% gap between the two.
2. A personalisation balancing act
Personalisation is everywhere, with 100% of marketers using customer data to tailor experiences in some way. Whether it’s personalised ads, loyalty rewards, or geo-targeted campaigns, the goal is to make customers feel seen.
But there’s a fine line between thoughtful personalisation and creepy intrusiveness:
- 88% of marketers admit personalisation can feel invasive, and;
- 60% of consumers agree
Surprisingly, some personalisation efforts go unnoticed – like loyalty rewards or thank-you messages – raising a tricky question: how do you make personalisation meaningful without being too pushy? Marketers need to strike a balance between impactful personalisation and respecting customer privacy.
AI is adding another layer to this puzzle. While 30% of marketers use AI for personalisation, only half have seen any real improvement. As AI tech evolves, this gap might shrink, but for now, the challenge remains.
3. Time to step up to sustainability
While AI is getting all the buzz, sustainable marketing seems to be slipping down the priority list, especially among bigger businesses. Small and micro businesses are twice as likely to view sustainability as a top challenge. Given that larger companies often have bigger carbon footprints, this disconnect is worrying.
There’s also tension between AI and sustainability. AI’s heavy digital footprint means more energy consumption, so some larger businesses might be prioritising AI at the expense of their net-zero goals.
Consumer ‘green fatigue’ adds another layer of complexity. A whopping 82% of marketers say overloading customers with sustainability messages is causing diminishing returns. But here’s the twist: 52% of consumers still care deeply about climate change. The key? Make sustainability part of your brand story without being preachy. Think practical solutions – helping customers recycle or offering eco-friendly options – rather than guilt trips.
The bottom line? Whether it’s AI, sustainability, or personalisation, marketers need to strike a balance between innovation, effectiveness, and ethics. The future of customer engagement isn’t about choosing one over the other – it’s about blending them all seamlessly.
If you’re looking for support on efficient and effective AI automation or compliant personalised marketing content, get in touch with us for a conversation.
