2023: Expect the unexpected
2022 has taught us to expect the unexpected. The most shocking events of 2022 for me were – as they probably were for everyone – the Ukraine conflict, the energy crisis, the growing pessimism among businesses and consumers and, finally, the emerging recession that completely changed the dynamics of eCommerce post-pandemic recovery. This is a new wave of mounting issues, something RetailX dubs the ‘negative multiplier effect’.
There’s no way to truly predict what twists and turns lie ahead in 2023. This implies being flexible and ready to change action mid-course: essentially, being lean yet impactful. Luckily at SALESmanago, we have promoted and supported such a business model for years now – and it’s a model that is tailor-made for the years ahead.
Here are my thoughts on the four main trends I expect we will see in 2023 and beyond.
1. More brands will deploy Lean Marketing strategies in eCommerce
As traditional customer relationships and marketing concepts are being increasingly challenged, it will become necessary to transgress them in 2023. Lean Marketing is at the centre of this. In short, lean marketing is an analysis of what the recipient truly cares about and optimises the entire communication process; eliminating activities that are a waste of time and money and do not bring value to the target customer.
Marketing no doubt faces a perfect storm as business heads into recession. But instead of being side-lined, teams need to prove they can get even closer to customers and encourage loyalty that will help their brand get well positioned for better times.
Customer Intimacy also plays a key part here. According to Epsilon, 80% of consumers are more likely to make a purchase from a brand that provides personalised experiences. But, the current approach based on the combination of first and third-party data is not enough to deliver this. Thankfully, the extensive use of zero-party data enables us to hyper personalise our communication and build true Customer Intimacy. This, in turn, leads to a strong bond between the brand and every customer.
2. Brands and its customers will turn to activism and try to align on values
ESG is not just a business goal and badge of honour. Its whole purpose revolves around genuine ethics, morals and action that seek to make changes for the greater good. Every brand is a sustainability brand.
We will see brand activism taking the fight to inequality, with initiatives such as adapting pricing schemes and product accessibility. It’s an ethos of uniting people versus the polarisation offered by politics. The War in Ukraine showed the great power of brands in tackling global problems – what would happen if war in Ukraine was the climate (or a multitude of other issues for that matter)?
Consumers will see straight through performative gestures. Brands will have to take genuine action and comment on issues they are actually invested in. We’re operating in a new customer loyalty paradigm founded on purpose and values. With more and more misinformation and fake news, consumer choices will be more and more based on emotions than critical thinking.
This wave of activism is only set to grow exponentially.
3. eCommerce will visibly contribute to climate change combat
eCommerce has the potential to significantly contribute to the battle against climate change through various initiatives and strategies related to marketing.
For example, businesses can make use of zero party data to reduce waste and improve sustainability. By collecting and using zero party data, businesses can create more targeted and personalised marketing campaigns, which can help to minimise the environmental impact of their marketing efforts by reducing the amount of unnecessary or ineffective marketing materials that are produced and distributed. Marketing teams are preparing for this transition, with 90% planning to employ zero-party data in 12 months.
Another way that eCommerce can contribute to the climate change combat is through the promotion and facilitation of re-commerce, which refers to the buying and selling of second-hand or pre-owned products. This can help to reduce waste and extend the lifespan of products, thereby reducing the environmental impact of the manufacturing and disposal process.
4. Customer data sets will expand to support diversity and inclusivity as well as true Customer Intimacy
In the past, customer data sets have often focused on traditional demographic and behavioural data, such as age, gender, income, location, and purchasing history. However, as businesses and consumers increasingly prioritise diversity and inclusivity, it is likely that customer data sets will also begin to include data on characteristics such as race, ethnicity, sexual orientation, and disability status. This can help businesses to better understand and serve their diverse customer base, and to create more inclusive marketing and product offerings.
As a result, this means brands can demonstrate true Customer Intimacy – whereby they create meaningful bonds with customers. By collecting and analysing more detailed data on individual customers, businesses can create more personalised and targeted marketing campaigns and product offerings, which can help to improve customer satisfaction and loyalty.