Report

8 Retention Predictions for 2023

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8 Retention Predictions for 2023

If there’s one thing that eCommerce brands can expect in 2023, it’s a whole lot of unpredictability. Now, we know what you’re probably thinking – isn’t this report about predictions for the new year? How can you possibly predict the unpredictable? Here’s why: because no matter what the future holds, eCommerce isn’t going anywhere. There are ways that brands can set themselves up for success no matter what the market or even the universe throws at them – and you’ll find them all in here.

It’s not exactly a secret that 2022 was a tough year for eCommerce brands. With skyrocketing customer acquisition costs, privacy changes, supply chain woes, and consumer spending plummeting due to inflation, brands looked for ways to grow their bottom line in a difficult climate. And what many realized was that customer retention was the key. Growing repeat customers has always been important, of course, but it’s never been this important.

Realizing that you need to move the needle on retention and actually doing it are two different things, though. In fact, we recently surveyed eCommerce brands, and 52% of them said they were more focused on retention, but over 40% haven’t made any changes to their strategy in order to improve it. Why haven’t they? 34% said their biggest challenge is the lack of a clear strategy.

Our takeaway from that data is that brands know how important retention is, but are unclear on how to get started. And without a solid strategy, you’re left with a “hopefully they liked us enough to come back” approach, which clearly isn’t working — 70% of those surveyed said their retention rate has either stayed the same or gotten worse over the past year.

We wanted to learn what the biggest changes were going to be this year in eCommerce – what new strategies brands were going to try, and where they planned to focus their energies (and budgets). So we talked to a ton of experts from brands, eCommerce agencies, and tech companies, and pulled out eight trends that are going to be a big deal in 2023. The overarching theme? If you want customers to make a second purchase, and a third, and (you get the idea), you have to get to know them better, and deliver next-level experiences that foster brand loyalty.

With the insights and strategies in this report, you’ll be able to stay ahead of the major trends that will impact retention in the new year, and not just survive the economic climate, but to thrive in spite of it.

 

 

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