E-commerce
How retailers can remain competitive during the pandemic
Myles Kleeger, president and chief customer officer, Braze, believes the retail winners of the holiday season, and of the ongoing pandemic, are those using this time to revamp strategies to focus on customer engagement.
December 23, 2020 by Myles Kleeger
The pandemic has changed consumer behavior forever, and there is no turning back. For example, 83% of global consumers say they will shop online the same or more even as retailers open back up from restrictions. With this in mind, brands must continue to invest resources and budget into more effective digital acquisition, engagement, and retention strategies — and use first-party data to deliver more personalized, relevant, and memorable experiences across the right channels. The customer journey doesn't stop when things change in the outside world — and major shifts like the ones retailers are facing now require responsive adjustments in order to remain competitive.
Prioritize retention
In a socially distanced world, a digital-first strategy is a natural choice. The pandemic led to a surge in customer acquisition through digital channels, but retailers shouldn't take those customers for granted.
While there was a staggering 60% increase in acquisition from online channels for retail and e-commerce brands during the height of the pandemic, these consumers are more likely to jump ship in the current environment. In fact, recent data found that customers acquired during COVID-19 have an 82% lower retention rate than those acquired during a non-COVID, non-holiday time period. Brands must place an emphasis on retention if they'd like to keep these new customers around, especially amid increasing competition.
To take advantage of the recent increase in users — and retain them — retailers should double down on responsive messaging, lifecycle marketing, and ensuring onboard flows are set up to demonstrate value. This is also a good time to leverage multivariate testing to optimize and refine customer messaging.
Adopt a cross-channel approach
Over the last decade, the rise of mobile and other emerging technology platforms has given consumers endless ways to interact with brands, from websites and native apps to smart speakers and smart watches. Each channel has unique strengths and cannot be used in a vacuum, limiting their impact.
Cross-channel messaging matters. It allows brands to reach customers more effectively and makes it possible to have a big, tangible impact on engagement levels for the people they reach.
Different messaging channels perform differently — both on their own and in combination with other channels. By leveraging email alongside mobile push, in-app messages, and other channels, a brand can boost engagement by more than 800%. For marketing teams that still operate in single-channel silos, know that customers won't hesitate to walk away from anything that feels like a broken experience.
The current retail landscape has provided an opportunity for brands to be agile and turn to all available channels, especially if they were not doing so already.
Recognize the issues that matter to your consumers
Brand familiarity is no longer the leading factor determining where a consumer shops; just 10% of consumers ranked it as a top consideration when deciding where they will make a purchase.
Instead, convenience, social responsibility, and personalized experiences are leading the way, influencing the path to purchase. In today's social and political climate, "no comment" is an answer within itself. If brands want to capture consumer attention, they need to have an authentic point of view and take into account the social issues that resonate most with their customers.
Embrace empathy
In today's turbulent environment, consumers will use their purchasing power to reward brands that demonstrate empathy and understanding. During the pandemic, 89% of consumers in the U.S. said they would switch from a brand due to its pandemic response.
At the same time, retail customers reporting being 1.7X as likely to make a purchase from brands that successfully demonstrated human communication during the pandemic. The takeaway here is that when retailers are human and empathetic in their communication, consumers are more likely to purchase, remain loyal, and recommend them to others. This sentiment has always been true, and is only accentuated by the pandemic as consumers are faced with additional stressors like health concerns, financial difficulty, and unemployment, among others.
As brands continue to navigate this evolving environment, the gap between who is succeeding and failing in retail is becoming increasingly apparent — especially as we near the holiday season.
We can anticipate shoppers will continue to take advantage of digital options, including buy-online, pick-up in-store — especially during the traditional brick-and-mortar Black Friday holiday, to avoid in-person crowds. While some retailers will struggle to get their footing, others will use this time to revamp their strategies to focus on customer engagement. With the right approach, those brands will emerge as the winners.
Myles Kleeger is president and chief customer officer, Braze.
About Myles Kleeger
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