From Creepy to Co-Created: Why Retail Needs a Rethink on Personalization

Retail brands are always chasing the golden snitch of personalization. However, too often their efforts rely on passive data collection and algorithmic guesswork, offering surface-level relevance without any real emotional connection.

Consumers don’t want to be treated like walking data sets. They want to feel seen, involved and valued. Instead, they’re bombarded with ads for things they already bought or, worse yet, things they only talked about. There’s no context, and often it comes across as “creepy.”

That’s because most personalization strategies are passive. They rely on observation rather than interaction. Data is collected, often without full transparency or consent, and used to make assumptions. It’s a one-sided conversation that fails to build emotional connection.

But there’s a shift happening. A new kind of personalization is emerging. One rooted in co-creation. And it’s proving to be a game-changer for retail.

Why Co-Creation Works

Co-creative personalization takes a whole new approach. Instead of analyzing customers from afar, brands actively invite them into the experience. Think Nike’s custom trainer platform; LEGO’s fan-designed sets; or the Sephora Squad, the online community where beauty fans co-create content, product reviews, and even new ideas.

These are examples of strategic moves that turn customers into collaborators, where people feel seen, heard and part of the process. They’re not just buying a product but buying into a brand. That sense of ownership builds emotional investment and loyalty that no amount of targeted ads can replicate.

What’s more, co-creation generates richer, more relevant first-party data. Rather than inferring what someone likes based on browsing behavior, you know because they’ve told you. They’ve designed it. They’ve voted for it. They’ve shared it. It gives clear consent and very clear context.

Building for Co-Creation

However, co-creation doesn’t mean giving customers free rein. It’s about designing spaces where they can meaningfully contribute without overwhelming them or compromising your brand.

The trick is to offer structure, not restriction. Nike doesn’t ask people to reinvent the shoe; it invites them to play with colorways, patterns and personal details. Designers have an important role here, defining these boundaries, ensuring freedom within a brand-aligned structure. The retailer is still very much in control, but is opening up just enough to bring people in.

Simplicity is also key. The best co-creation experiences are intuitive, joyful and accessible. This is achieved through strong interaction design and a clear understanding of the customer journey. If it feels like hard work, it’s not working. When someone can express themselves quickly and easily and see their input reflected back in the end result, they’re far more likely to feel a genuine sense of ownership. And if they feel like a professional designer at the end of it, then that’s a bonus!

For fashion, beauty, and lifestyle brands, these moments of co-creation can happen everywhere, from letting customers vote on limited-edition drops to showcasing community-generated styling content. Even grocery and homeware retailers are experimenting with customer-curated collections or seasonal campaigns shaped by shopper insights.

Co-creation isn’t just a design feature, however. It’s a cultural choice. It asks brands to see consumers not as transactions waiting to happen, but as collaborators with ideas, preferences and perspectives worth listening to. The smartest retailers are using co-creation not just to personalize, but to learn — seeing what customers create, choose, and gravitate toward to inform future decisions.

It’s less “What can we sell you?” and more “What can we build together?”

Personalization, done right, should feel like a wink, not a poke. It should feel like something you were part of, not something that was done to you. That’s what co-creation delivers.

In an age of hyperpersonalization where every algorithm promises relevance and delivers repetition, letting customers help shape the experience can feel refreshing. It feels special. It feels involved. The most powerful kind of personalization isn’t predictive but participatory.

And let’s be honest: no brand wants to be called a creep.

Chaitrasri Rao is executive design director at Designit, an experience innovation company with creativity at its core.