What will be the top 3 digital marketing trends of 2023?

As e-commerce has evolved drastically over the past few years, so has the role of digital marketing

Marketers have had to remain agile, adapting strategies to keep up changing consumer needs. Entering 2023, we’ll see marketers continue to shift how they engage and communicate with consumers. Bloomreach provides a few trends that digital marketers are bound to experience as the year picks up and how they can get ahead of them.

1. Retention over acquisition

Rising customer acquisition costs (CACs) have been both the center of conversation and a source of stress for marketers this past year. A recent survey found that a majority of retailers attributed CAC as the main threat to their 2022 sales goals. On top of that, paid media channels continue to grow more expensive, leaving marketers to seek alternative marketing channels. With all emphasis placed on customer acquisition, brands have underestimated the power of retention marketing. Yet prioritizing customers who already know your brand can be a highly efficient way to drive results. In 2023, expect to see more brands leveraging reliable channels such as email and SMS to re-engage existing customers and drive repurchase rates.

Those retention marketing efforts will also be made easier with the help of personalization. Established and returning customers have already provided brands information about their preferences and the channels they’re most likely to use– the trust is there. That means brands can more impactfully meet these existing customers where they are, making it more likely that they’ll return to make another purchase.

2. Seamless omni-channel experiences will become the standard

If we’ve learned anything from the past year it’s that connected journeys matter. The boundaries and distinctions between channels will continue to blur, and brands should expect their customers to consistently use multiple channels. A customer’s ability to receive an engaging email, browse on their mobile device, find what they’re looking for, and check out on their desktop with ease is what can determine if a customer returns or not.

Even further, an omni-channel experience provides new opportunities for e-commerce platforms to expand their reach in this new year and engage with new customers. SMS alone is becoming a more reliable and successful marketing tactic with open rates and ROI that rival email. Investing in an omni-channel strategy that communicates with customers in a more creative, personalized way while leveraging the channels that they will be more receptive to, will prove valuable in the long run. It’s no longer enough for retailers to rely on a singular channel or shopping experience to acquire, covert or retain customers.

3. AI will help marketers adapt to an evolving e-commerce landscape

Over the years, artificial intelligence (AI) has become a much more significant tool for marketers. It’s become a way for marketers to scale their efforts and reach larger audiences with content and campaigns. And going into 2023, AI offers even greater potential for marketers– allowing them to retain the customers won during the past few years while still attracting new ones. AI allows today’s marketers to infuse campaigns with personalization at scale. This will be key for how marketers engage and convert customers in today’s digital landscape.

Scaling personalization using AI means that marketers can ensure they’re showing an entire customer base exactly what they want to see, when and where they want to see it. And while AI and data do make this possible, it’s the human aspect of personalization that makes the difference. Combining the power of AI with a marketer’s understanding and expertise of who their customers really are is what makes these seamless customer journeys actually enjoyable. As consumer expectations continue to grow and their preferences become more exact, AI will be the tool that will make it easier for companies to adapt to these changes, but it is the strategic marketer who will know how to implement it to build a loyal customer base.

A year to look forward to

2023 will surely be a fascinating year for e-commerce, if what we saw in 2022 was any indication. The pandemic contributed to the surge in e-commerce, but this is really when we’ll see that rapid growth stabilize and materialize. The common thread throughout all these trends is that centering the customer is key to sustaining success in the new year. With that at the forefront, this year will shape up to be the most profitable one yet.