E-commerce

E-commerce in 2022: New ways to gain customer loyalty

Brands will need to explore alternative ways to find relevant information about customers to deliver shopping experiences well suited to them.

Photo by istock.com

February 15, 2022

We've seen so much change over the past two years. The 2020s so far have been marked by quick adaptation. We've had to explore new ways of going to school, new ways of interacting with people and new work paradigms.

In retail, brands have seen the tidal wave of change roll over them over the past two years and have adjusted with the ebb and flow. E-commerce sales skyrocketed during the height of the pandemic and that momentum has been maintained (Adobe predicted that e-commerce sales would hit $4.2 trillion in 2021).

In this new shopping climate, brands have also been faced with new hurdles such as significantly increased competition in the digital advertising sector. Marketers have had to experiment with an increasing amount of channels as customers opt-out of traditional marketing comms.

And, of course, one of the major stories of the year is the fulfillment and supply chain challenges that had retailers struggling to fulfill orders and maintain customer loyalty.

We predict the happenings of the past year will lead to change in several key areas in 2022. Here are a few trends that will shape e-commerce next year.

Adapting to what's to come

Several iOS updates changed the way we operate in 2021. Plus, Google has confirmed it is phasing out third-party cookies on Chrome by the end of 2023. This will certainly impact brands who have traditionally benefited from all of that third-party data to track visitors to their websites and use that information to target the right audiences. Brands will need to explore alternative ways to find relevant information about their customers to deliver shopping experiences well suited to them.

This is why 2022 will be the year that brands find even better ways of motivating customers to share their personal data. The incentives have to be unique and special and give customers significant, extra value for sharing their information. Customers could be offered exclusive experiences, such as early access to new products before others, or significant savings on items that rarely go on sale in return for their data.

Another option is rewarding customers incrementally as they share more data. With regular, small amounts of data being shared, the preferences accrue on customers over time and allow brands to update and retarget how they connect with that customer in the future. Brands can do this by rewarding customers with loyalty points for filling out more forms and providing personal details.

With customers back in the driver's seat and choosing where and when they share their personal data, brands who respond in the right way will see a renewed interest in sharing information and more opt-in. The happier the customer, the more brands can deliver personalized experiences. And if the brands get it right, these experiences will retain customers for longer and increase their lifetime value.

People will pay more and be loyal to elevated customer service

The 2021 Black Friday Cyber Monday shoppers had to wade through a host of fulfillment shortages. And that's been tough on brands, too. The truth of the matter is that the supply chain will be uneven for the foreseeable future. 100% of retail executives say they expect the disruptions to continue in 2022.

At this point, most shoppers understand that there are global supply chain issues that retailers cannot completely overcome. We predict that brands will take a very honest approach to letting their customers know what is going on behind the scenes next year. Transparency with customers about the challenges of acquiring stock and how they will "make it up" to customers will be a winning strategy for maintaining customer loyalty and sales in 2022.

We're also quite sure that winning brands will lean on their customer service capabilities. To prioritize how to respond to customers in times of challenge, stores will connect their loyalty programs with their help desk so they can better segment their customers. By identifying their most loyal shoppers, they can respond to these shoppers first and resolve their complaints with loyalty points as an apology when orders go unfulfilled or arrive late.

Or, brands may choose to segment their customers and give varying levels of service depending on their loyalty to the store. Happy Mammoth uses tiers to give customers who have spent and engaged less free shipping only on orders over $90. Whereas the most loyal customers in their "Insider VIP" tier get lifetime free shipping on all orders.

By prioritizing customer service and specific shopping segments, stores gain more brand loyalty. They will feel valued even if their order is lost in the supply chain morass.

The e-commerce challenges of the past year will almost certainly continue. What's key here is how brands react to encourage returning customers. Brands must focus on creating emotional connections that encourage customers to opt in and show patience when challenges arise. With more marketers getting to know their customers, brands will be given the reward of retaining them.

Charlie Casey is CEO at LoyaltyLion