By Raviteja Dodda, CEO and co-founder, MoEngage
The current macroeconomic situation demands brands to do more with smaller budgets, drive higher loan to value (LTV) and prioritise retention through effective engagement, all of which require a deeper understanding of customers.
From being ROI-positive to prioritising mobile channels and focusing on retention to offering customers a truly omnichannel experience, here are the top trends in 2023 that consumer brands should be cognizant of:
Rise of new-age engagement channels
Younger generations are fast becoming the prime economic drivers with more purchase parity than ever. More than 50 per cent of such consumers browse 3-5 channels before making a purchase and brands are embracing new-age engagement channels such as Whatsapp, Tiktok and Snapchat among others.
Increased investment in engagement platforms to deepen customer understanding
With more options available than ever, the modern consumer is spoilt for choice and they prefer brands that truly understand their needs. Among consumer brands, we will see a sharp increase in investments – up to 40 per cent – on insight-led engagement platforms. This will be done to gather deeper insights about the segments that spend most and to utilise predictive technologies using AI to serve their customers better.
Focus on channels frequently used by consumers
By 2025, over 81 per cent of consumers in the Middle East and Africa will have access to the internet. As the transition to 5G networks gains momentum in the region, enterprises feel an urgency to build personalised micro-moments for the modern consumer, especially across frequently used channels like mobile apps. In fact, our recently conducted survey across India shows 44.6 per cent of consumers spend 2 to 4 hours on their mobile devices daily, outside of work-related activities. With 37.6 per cent of consumers visiting their banking and fintech apps 2 to 3 times a week, the prevalence of mobile phones and apps in the BFSI sector cannot be denied.
Demand for integrated offerings will soar
Given the incoming economic downturn, marketing budgets will be looked at from an ROI lens. Brands will plan to cut down on the point solutions with individual pricing currently in use such as customer relationship management (CRM), customer data platform (CDP), analytics tools and replace them with an integrated platform offering all solutions under one roof.
Our State of Insights-led Engagement report survey observed that 26 per cent of surveyed marketers utilise CRM platforms to optimise their marketing initiatives. CDPs and multichannel customer engagement platforms (CEPs) are utilised by 21.4 per cent and 20.9 per cent respectively. While CRMs and CDPs seem to be the marketer’s favorite, there is a significant dissonance regarding the challenges faced and the services provided by chosen tech stacks. This signifies the inadequacy of the currently preferred platforms. To keep up and bridge such gaps, marketers need to switch to a more holistic and multichannel alternative like a CEP. This will help brands better understand customers and limit spending by saving costs and resources, which is critical during the current economic climate.
Walking the thin line between personalisation and privacy
Personalised customer engagement is no longer a luxury – it is an expectation. In fact, as per our Customer Engagement Benchmark report, personalised emails boast 1.9 times higher open rate and 2.45 times higher click rate for push notifications. So, retire the idea that your customers do not want to hear from you. However, ensure you are not compromising their privacy with personalised recommendations. Be transparent about the usage of personally identifiable information (PII) and how it can provide a delightful experience to the customers.