Unlocking retail growth: the power of known customers

Unlocking retail growth: The power of known customers


Discover how retailers can fuel growth by harnessing the power of known customers to boost loyalty and financial performance.


In brief:

  • A known customer is defined as a customer whose identity, preferences, and behaviours are organized across online and offline channels, allowing for continuous personalized engagement. 
  • This report explores key growth levers for retailers adopting a unified approach to commerce, building on insights from an initial EY report on the importance of unified commerce in retail.
  • This report emphasizes the pivotal role of known customers in driving sales growth and brand loyalty. Findings illustrate that known customers accelerate growth through more frequent engagement, higher spend per transaction and more repeat purchases.  
  • To transform transactional interactions into advocacy, retailers can apply the EY known customer growth cycle to build a robust network of known customers. This framework highlights key steps for engaging with customers across all data touchpoints, including data collection, organization, activation, and continuous engagement.  
  • As part of the EY analysis, Shopify was used as an example of a commerce operating system that helps retailers build a robust known customer base through its unified data model and customer engagement tools.

Fragmented customer data is limiting retail growth. With the blending of online and offline channels, retailers have more ways than ever to collect customer data but are often left overwhelmed as they struggle to piece together data across disconnected systems. Traditional commerce processes are failing to adapt to changing shopping behaviours, hindering brands from achieving a unified view of the customer — a view essential for personalization, brand advocacy and, ultimately, growth.
 

Today, retailers face the challenge of creating personalized experiences at scale while managing fragmented customer data. Integrating and deploying cross-channel data effectively is the key for going beyond identity recognition to a deeper understanding of customer behaviour.
 

Using multiple EY frameworks, we assessed how retailers can move customers from unknown or transactional to fully known customers who become strong brand advocates. By focusing on building a strong known customer base, retailers can reduce customer acquisition costs and create broad and consistent revenue streams.
 

While capturing data across all touchpoints is crucial to understanding the customer, EY’s analysis focuses on the often-overlooked opportunity of in-store data capture. A robust point of sale (POS) system with a unified data model can effectively bridge this gap, improving in-store data collection and making it more comparable to online processes.
 

This report explores how Shopify turns retail into a powerful acquisition channel. Shopify’s investment in in-store data capture empowers retailers to seamlessly transition from transactional interactions to building a robust base of known customers. Shopify facilitates growth by centralizing customer data, helping retailers achieve an average known customer rate of 80%*. Shopify’s integrated ecommerce and POS solutions offer retailers a unified view of customer interactions, simplifying the process of building a loyal customer base.
 

*Data provided by Shopify as of May 2025 across all retailers using Shopify POS.

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Unlocking retail growth: The power of the known customers

Download the report to discover how retailers can fuel growth by harnessing the power of known customers to boost loyalty and financial performance. 

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