As we look ahead to 2023, the economy is uncertain and B2C and B2B eCommerce landscapes are evolving rapidly. Uncertainty can bring about change and innovation, leading to new and exciting possibilities for businesses. This type of economy allows for flexibility and adaptation as companies are finding new ways to navigate and succeed in a shifting landscape. While there may be a few new, groundbreaking ideas emerging, there is a lot of momentum behind the trends that have been gaining traction over the past couple of years.
One of the most notable trends is the growing importance of brand loyalty, as customers become more discerning and demand a higher level of service and engagement from the brands. With the current uncertainty, brands need sustainable and less costly revenue growth strategies.
Rules about customer data in 2023 will become increasingly under scrutiny, and brands of all sizes need to be more deliberate about collecting, protecting, and understanding their own first-party customer data. This data, when analyzed and understood, will be a strategic asset for brands to get better insights about their customers.
Social commerce also continues to outperform other demand-generation strategies, with businesses leveraging platforms like Instagram, TikTok, and Facebook to drive sales and engage customers. Any brand today can harness social commerce to access new markets and audiences with very little investment. More about that later.
These trends indicate that businesses continuously embrace new ideas to remain competitive. Brands should key in on a few ideas that they believe will be low lift but high value. In this first of two-part series, we will dive deeper into these ideas and explain how they can create impact and value for your brand in 2023.
Brand loyalty is often overlooked
The competitive landscape in most markets is fierce as brands use technology to help them scale faster. Shopify's research shows that while only 28% of consumers tend to make repeat purchases from the same online store, these loyal customers make up a significant portion of a brand's revenue, accounting for 44% on average. There are several vital points for businesses looking to maximize customer loyalty.
Brand leaders need to take the time to look at their customers' purchase history. It's essential to understand and calculate typical customer lifetime value (CLV) and look for common characteristics among those customers who are loyal to your brand. CLV will inform the type of customers a brand should target and how to tailor marketing campaigns to access them.
Many people talk about loyalty, but few brands use offers and rewards to incentivize customers to make repeat purchases. You can encourage customers to come back and make purchases with the right offers and rewards. Rewards will help drive loyalty revenue, increase customer retention and incentivize customers to become sources of recommendation and referral.
After brands understand their customers, they need to use technology to help engage with customers on an individual basis. You can reach customers based on their past purchasing habits through automated messages and tailored campaigns with personalized recommendations. These recommendations will give customers the feeling that they are being treated as individuals and increase their chances of making repeat purchases.
By focusing on the above points, businesses can realize an increase in sales and a stronger relationship with their customers. The value of this type of loyalty should be considered, as it provides an excellent source of repeat and referral revenue. With the right approach, businesses can capitalize on this trend and build an even more successful eCommerce brand.
Using new data rules to thrive
The importance of first-party data in the world of eCommerce is becoming increasingly apparent as businesses realize the value of this type of data and the insights it can provide. According to a study by Accenture and Adobe, seventy-seven percent (77%) of CEOs know that they must fundamentally change how they interact and engage with customers.
First-party data is considered more reliable and accurate than third-party data, making it an invaluable asset in helping businesses make informed decisions about their eCommerce strategy. Third-party data can still be relevant and useful in certain situations, but its use has recently been scrutinized due to data privacy and accuracy concerns. Third-party data is typically collected by companies other than the business using it and can be less reliable and accurate than first-party data. Additionally, with the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) coming into effect, stricter laws and regulations on collecting and using third-party data make this data harder to use.
For businesses looking to capitalize on the trend of first-party data, there are several vital points to consider. Start by setting up systems to collect customer data and obtain customer consent. Store and organize the data securely, and use tools to analyze it. Businesses can decide about their website, marketing campaigns, or product offerings with the insights gained. It is also essential to continuously monitor and maintain the data collection and storage systems, update data analysis tools and methods, and comply with data privacy regulations.
By focusing on these key points and using first-party data to improve the customer experience, businesses should realize an increase in sales, build stronger relationships with their customers, and more effectively target and personalize their marketing campaigns.
Access to billions through social
Social commerce has become increasingly crucial for brands in recent years, and its growth is only set to accelerate. Platforms like TikTok, Facebook, Instagram, and Linkedin are new revenue tools that brands can leverage their large user bases to access new customers. According to recent research, the social commerce market is expected to hit $1.3 trillion in 2023, exceeding the $1 trillion mark for the first time. This is a 30.8% increase from the previous year when social commerce sales amounted to $958 billion.
For brands looking to capitalize on this trend, there are some tips:
- Platform selection is a crucial first step. Brands must consider where their target audience is most active and choose platforms that align with their business goals. The data about the audience is readily available from platforms and easy to access to test and gather data.
- Developing a solid content strategy is also essential, as businesses must create visual, informational, and interactive content that resonates with their audience and drives conversions. B2C brands need to align with influencers who can help attract new users. B2B customers need to use platforms to educate customers on their products and services and turn them into leads.
- Businesses need to ensure that their social commerce operations comply with data privacy regulations and ensure that the payment and checkout process is secure for customers. Integrating social commerce with customer relationship management (CRM) and e-commerce systems can also help to track customer interactions and orders across all channels. By allowing customers to purchase products directly through social media platforms, social commerce can help increase sales and revenue for a brand.
Social commerce can increase the average order value by providing a seamless and convenient shopping experience. In addition, social media platforms allow brands to cost-effectively promote their products and services to their user bases at less cost than traditional advertising. To maximize the value of social commerce, brands need to focus on providing personalized experiences for their customers. By using data to personalize customer interactions, brands can increase conversion rates and ensure that they provide the best possible experience to their customers. Customer service is also a key benefit of social commerce, so responding to customer inquiries and handling complaints quickly and professionally is essential. By understanding and capitalizing on the trend of social commerce, businesses can increase sales and revenue and build stronger relationships with their customers. With the right approach, companies can maximize the value of social commerce and create an even more successful eCommerce brand.
2023 is kicking off with its share of uncertainty. Brand loyalty, first-party data, and social commerce are individual trends that can help eCommerce brands succeed with certainty. When all these platforms and trends are used together, eCommerce brands can interact with greater clarity and develop focused strategies to leverage that data to grow existing and new revenue streams.
Dreaming Code helps brands enable a feature-rich eCommerce for their customers using our industry-leading SaaS product. With minimal configuration and access to our solutions consulting team, we package processes, services, and results to enable brands to succeed all for a straightforward monthly fee. Feel free to contact us to set up a consultation with us today.
To learn more about how we can help your business, schedule an appointment with one of our solution experts today.
To learn more about the Dreaming code eCommerce platform visit: http://dreamingcode.com.