Customer Loyalty Trends and Predictions for 2023
Customer loyalty is a crucial metric for business success. Loyalty is more than just what you sell - it's about how well you treat your customers. And whether you can persuade them to stay.
Looking ahead to 2023, what trends will shape customer loyalty this year?
We’ve gathered our expert loyalty predictions so you can get ahead…
Brand switching will increase as customers search for better deals
Rising prices of food, fuel, and other essentials mean that brand switching will be inevitable.
Customers will spend more time and energy searching for the cheapest prices and savings. In fact, research by Toluna found that the rising costs of living have impacted a huge 68% of consumers’ spending. As a result, brands will have to do what they can to stop customers from switching.
Cashback rewards will become more popular
With brands looking for ways to retain their customers, instant monetary rewards are on the rise.
Brands such as PayPal are now offering cashback to shoppers using their service. This reward mechanism will prove popular with both businesses and customers; for customers, it's an easy and quick way to get tangible value, and for businesses, it's an effective way to differentiate themselves from the competition.
The dawn of FMCG/CPG loyalty
FMCG and CPG companies have historically been unable to directly influence customer loyalty without relying on third-party sellers and non-trackable advertising. Whilst platforms such as social media have allowed brands to start communicating directly with end customers, customer loyalty in this industry is still in its infancy. There are now new technologies emerging that will give FMCG and CPG brands the opportunity to gather a deeper understanding of their customer's behaviour and act accordingly. We have already seen a lot of interest in such solutions and we predict the results of this will start to dawn in 2023.
Gamification and “new-world” rewards
Last year we saw global brands such as Nike, Starbucks, and Coca-Cola announce that they will offer NFT rewards and web3-related experiences to engage customers. Such offerings have been well-received by consumers, digital-first brands, and any business that is interested in rewarding customers in new, innovative ways. In 2023 we will see brands get even more creative with digital rewards, along with other forms of gamification.
Even more seamless customer experiences
The loyalty space is constantly looking for ways to create a smoother user experience.
This year, brands will explore more technological solutions that can make this happen. This means investing in technical integrations and single sign-on (SSO) connections that create a true omnichannel experience. It will be a tough year for businesses that still rely on legacy systems with siloed data…
Brands will have to provide more value via rewards
A tough economic climate this year will require brands to demonstrate how they are helping customers save money and get more out of their spending.
Emotional loyalty will be a key part of this - winning the trust of customers and building deeper relationships is non-negotiable. Budgets are also tight for businesses, so brands should look beyond just lowering prices to offer value. Value can come in the form of personalised offers, useful content that helps and entertains customers, and tangible savings made via collecting loyalty points, completing gamified engagement ‘challenges’, or earning cashback.
The future of customer loyalty is here, and it’s a bright one.
2023 will be the year that businesses realise they have got to go beyond customer expectations. The stakes are higher, but the rewards are worth it.
Take time to understand your customer’s needs and desires this year, and then use data and insights to create an experience that surpasses their expectations.
That’s how you build customer loyalty in 2023 - by having the right data and acting fast.
If you’re looking for a data, loyalty or reward solution, we can help. Get in touch with one of our loyalty experts so we can help make 2023 your most successful year yet…
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Senior Content Marketing Executive
Helen is our Senior Content Marketing Executive. She shares valuable information about the Future of Loyalty and will keep you up to date on the latest industry insights...