6 Ecommerce Trends to Look Out For in 2023

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In this blog post, we explore the key ecommerce trends that businesses should be aware of as we enter the new year. From building brand loyalty to leveraging first party data, these trends will have a significant impact on the ecommerce industry in 2023. We’ll delve into each trend in detail, providing insight on how businesses can navigate and leverage these trends to shape their 2023 ecommerce strategy. Stay ahead of the game by reading on to learn more about the top trends shaping the ecommerce landscape in the year ahead.

The top 6 ecommerce trends you should look out for include:

  1. Building Brand Loyalty
  2. Leveraging First Party Data
  3. Creating a Seamless Omni-Channel Experience
  4. Increasing Use of Automation and Artificial Intelligence
  5. Evolving Ad Platforms
  6. Rise of Social Commerce.

To stay competitive, it will be crucial for brands to adapt to these trends and implement strategies to take advantage of them. By doing so, they can position themselves for success in the competitive ecommerce landscape.

Building Brand Loyalty in a World of Single Purchase Shoppers

Shopify’s research shows that only 28% of consumers tend to make repeat purchases from the same online store. However, these loyal customers make up a significant portion of a brand’s revenue, accounting for 44% on average. This highlights the importance of identifying and nurturing loyal customers, as they can have a major impact on a brand’s bottom line. In a market where advertising costs are rising and competition is increasing, it’s more important than ever to focus on retaining and growing your loyal customer base. Here are a few tips to identify and find more loyal customers:

  • Analyze customer purchase history: Look at the past purchases made by a particular customer. If they have consistently made large purchases or have made a high number of purchases, they are likely to be loyal to your brand.
  • Calculate customer lifetime value (CLV): This is a measure of the total amount of money a customer is expected to spend on your products or services over their lifetime. Customers with a high lifetime value are typically more loyal, as they are expected to make multiple purchases over a long period of time.
  • Look for common characteristics: Identify common characteristics among these two groups of customers, such as demographic information, location, or interests. This can help you target your marketing efforts to find more customers like them.
  • Offer rewards and incentives: Consider implementing a loyalty program or offering special promotions to encourage customers to continue doing business with your brand. These programs can also provide valuable data and insights about customer preferences and behaviors.

Zeenk helps brands identify and predict the most loyal and profitable customers and their common characteristics.  Brands can then use these segments to better align their bidding strategies, targeting, and positioning of their messaging for each segment.  Read more about the importance of  Optimizing Against Customer Value.

Leveraging First Party Data

First party data refers to data that a business has collected directly from its customers or clients. This data can be extremely valuable, as it can provide insights into customer preferences, behaviors, and interests. In 2023, there are several ways in which brands can leverage first party data to drive business results:

  • Personalization: First party data can be used to personalize marketing efforts and deliver more relevant and targeted messaging to customers. This can include personalized emails, recommendations, and offers based on a customer’s past purchases or interactions with the brand.
  • Segmentation: First party data can be used to segment customers into different groups based on shared characteristics or behaviors. This can help brands to create more targeted and effective marketing campaigns.
  • Customer understanding: First party data can help brands to better understand their customers, including their needs, preferences, and pain points. This can inform product development and customer service efforts, as well as marketing campaigns.
  • Cross-selling and upselling: By analyzing first party data, brands can identify opportunities to cross-sell or upsell products or services to existing customers. This can help to increase customer lifetime value and drive additional sales.
  • Customer retention: First party data can be used to identify at-risk customers and implement retention strategies to prevent churn. This can include targeted messaging or offers designed to keep customers engaged with the brand.

Importance of Omni-Channel Strategy

Omni-channel strategies refer to the use of multiple channels (such as physical stores, online marketplaces, social media, and mobile apps) to reach and engage with customers. In 2023, it’s likely that omni-channel strategies will continue to be a key part of ecommerce, as companies seek to create a seamless and consistent experience for their customers across all channels.

Some potential ways that omni-channel strategies could impact ecommerce in 2023 include:

  • Improved customer experience: By offering customers a range of channels through which to shop, companies can make it easier for customers to find and purchase the products they want. This can help to improve the overall customer experience and increase customer loyalty.
  • Increased sales: By offering customers multiple ways to shop, companies can reach a wider audience and potentially drive more sales. For example, a customer who discovers a product on social media may be more likely to make a purchase if they can easily purchase the product online, on Amazon or in a physical store.
  • Greater integration of online and offline channels: Omni-channel strategies often involve the integration of online and offline channels, such as allowing customers to purchase online and pick up in store or offering in-store kiosks that allow customers to browse and purchase products online. This integration can help to create a more seamless shopping experience for customers.
  • Enhanced data collection and analysis: By using multiple channels to interact with customers, companies can collect more data about their customers’ preferences and behaviors, which can be used to inform marketing and sales strategies.

This year Zeenk worked with Thrasio, a direct-to-consumer (DTC) brand aggregator, to measure the impact of a cross-channel strategy and the impact of social advertising on Amazon and DTC sales.  Read the full case study result on the Amazon’s Data Partner Library.

AI/ML Advances

Artificial intelligence (AI) and machine learning (ML) are likely to have a significant impact on ecommerce in the coming years. Some potential ways that AI and ML could impact ecommerce in 2023 include:

  • Personalization: AI and ML can be used to analyze customer data and create personalized recommendations, helping companies to better understand and meet the needs of their customers.
  • Improved customer service: AI chatbots and virtual assistants can be used to provide quick and accurate responses to customer inquiries, helping to improve the overall shopping experience.
  • Inventory management: AI and ML can be used to analyze sales data and forecast demand, helping companies to better manage their inventory and reduce waste.
  • Marketing and advertising: AI and ML can be used to optimize marketing campaigns and target ads to specific segments of the population, helping companies to better reach and engage with their customers. We’re already seeing solutions like GPT-3 that are bound to revolutionize marketing by improving customer engagement, automating customer service, personalizing marketing efforts, and gathering insights into customer preferences and behaviors.

The use of AI and ML in ecommerce is likely to become more widespread in the coming years, as companies seek to improve efficiency, drive sales, and provide a better customer experience. 

Zeenk uses machine learning today in building predictive customer lifetime value models based on past purchase behaviors and flows.  It is our proprietary data science model that helps brands identify which customers will be the most profitable and continue to nurture the relationship.

Evolving Ad Platforms

As ad platforms continue to evolve we anticipate new features and changes to their algorithms will impact the way that companies bid on advertising space. In 2023, it’s likely that these changes will continue to shape bidding strategies, and companies will need to stay up to date with these changes in order to effectively compete for ad space.

Major players like Google, Meta, and most recently Apple are announcing changes to advertising on their platforms.

We anticipate these changes will have major impact on:

  • Ad Targeting and Audience Reach: Google announced the deprecation of Similar Audiences coming in 2023 along with changes already released in 2022 such as Performance Max and Responsive Search Ads to replace shopping and expanded text ads. Inevitably meaning, ecommerce managers will have less control and more reliance on algorithms.
  • Bidding Optimizations: In 2023, it’s likely that ROAS based bidding will continue to be a popular strategy for advertisers, as it allows them to optimize their ad spend and better measure the ROI of their campaigns. by focusing on ROI rather than just impressions or clicks, ROAS based bidding can also help advertisers to better allocate their ad spend to the customers that create the greatest value and achieve better results from their campaigns.
  • Emergence of New Ad Platforms: Apple is reportedly launching a demand-side platform (DSP) enabling ad buys exclusively across the growing list of Apple owned properties. Connected TV (CTV) and Over-the-top (OTT) ad performance measurement enhancements are opening doors to smarter ad spend. Closed loop ecosystems are continuing to emerge outside of Amazon and eBay to the likes of Retail Media Networks from major players like Albertsons, Best Buy, CVS Pharmacy, Walgreens and others.

Changes to ad platforms in 2023 are likely to bring both challenges and opportunities for ecommerce companies. To succeed, companies will need to stay up to date with these changes and adjust their ad strategies as needed in order to effectively reach and engage with their target audiences.

Rise of Social Shopping 

Social shopping is the use of social media platforms to discover, research, and purchase products, and it is expected to continue to be a significant trend in ecommerce in 2023. Some potential ways that social shopping could impact ecommerce in the coming years include:

  • Increased influence of social media on purchasing decisions: As more people use social media to discover and research products, the role of social media in the purchasing process is likely to become even more important. Companies that effectively leverage social media to showcase their products and engage with potential customers will have a competitive advantage.
  • Growth of social media commerce: Many social media platforms, such as Instagram, Facebook, andTikTok already allow businesses to sell directly to consumers through their platforms. This trend is likely to continue to grow, as more companies recognize the potential of social media as a sales channel.
  • Greater use of social media for customer service: Social media is becoming an increasingly important channel for customer service, with many customers using platforms like Twitter and Facebook to ask questions and seek support from businesses. Companies that are able to effectively respond to customer inquiries and resolve issues through social media will likely have a competitive advantage.
  • Increased use of social media for marketing: Social media is an effective channel for reaching and engaging with potential customers, and companies are likely to continue to use it as a key part of their marketing strategies. In 2023, it’s likely that businesses will continue to use social media to promote their products, build brand awareness, and drive sales.

Are you ready to win in 2023?

Zeenk is here to help. Schedule a call and lets shape your ecommerce strategy together for a successful New Year.

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