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Founder Interview – Stella S.
February 9, 2026
Seed Five
The End of Growth Marketing?
Danielle Hofmann
A Digital Marketing & E-commerce Specialist with over 5 years of experience specializing in CRM, brand management, content creation, and data analysis. Danielle currently serves as the E-commerce Manager at Lingua Franca NYC, driving growth through enhanced user experience.
At this year’s GROW NY conference, one message cut through the noise: the playbook of growth marketing, acquiring as many new customers as possible, is losing steam. Rising ad costs, platform saturation, and shifting consumer expectations have made it clear that chasing acquisition alone is no longer sustainable.
Instead, industry leaders argue, the future belongs to retention marketing. Thanks to AI, brands are now able to streamline a personalized, relationship-driven experience that today’s customer market demands.
From Acquisition to Loyalty
For years, growth marketing dominated the conversation in e-commerce. The idea was simple: scale fast by pouring budget into ads and customer acquisition campaigns. But the economics have shifted.
Acquiring a new customer now costs five to seven times more than keeping an existing one (Braze). At the same time, improving retention by just 5 percent can lift profits by as much as 95 percent (Darkroom Agency). That math is hard to ignore.
Even more important, the consumer market has changed. In an era of endless options, shoppers expect products to be tailored to their likes, interests, or needs, mimicking a thoughtful, human experience. By not implementing this trend, companies risk losing their loyal customer base.
Why AI Changes the Game
Retention marketing is not new, but what is different now is AI. The technology makes it possible to scale one-to-one relationships in ways that were previously impossible by operating:
- AI models that flag at-risk customers before they leave, which triggers personalized and persuasive outreach (Newecom.ai).
- Generative models that promote various offers, product recommendations, and content that is customized for each individual (Intelemark).
- Uplift modeling techniques that help identify persuadable customers to avoid expenditure on ones who are not (Wikipedia).
- Message systems that are triggered and arrive at the very moment there is detection of cart abandonment or a loyalty reward (arXiv).
These marketing tactics are best exemplified by Amazon, whose recommendation engine alone drives 10 to 15 percent of their total sales, much of it stemming from repeat purchases (SuperAGI).
Retention Strategies That Work
Brands do not need to reinvent the wheel to get started. The fundamentals of retention are familiar, but AI supercharges them by:
- Adapting loyalty program rewards to their customer’s habits.
- Personalizing onboarding journeys from day one.
- Advertising re-engagement campaigns that win back past buyers with well-time offers.
- Developing customer support that employs empathic, human service through AI chatbots.
- Building community that supports customer advocacy, not only for buyers.
A Company-Wide Shift
Retention is not just a marketing tactic, it is a mindset shift. Success means:
- Measuring lifetime value and churn as closely as ad spend.
- Building strong first-party data systems for detailed customer insights.
- Using AI responsibly, avoiding invasive personalization that erodes trust.
- Ensuring marketing, product, and service teams maintain a uniform goal: long-term loyalty.
The Bottom Line
Growth marketing is not dead, but it is no longer the star of the show. Retention marketing, powered by AI, is where competitive advantage now dominates. Customers expect care, personalization, and authenticity, which, when employed effectively, will recruit new and loyal advocates.
The next era of e-commerce growth is not about how many people you can reach, it is about how many people choose to stay.
Featured Image: GROW NY
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