December 7, 2023

Personalization, Retention and Owned Channels Will Define eCommerce in 2024

The brands that build authentic connections and lasting customer relationships will be poised to thrive

In just a few short years, e-commerce will look remarkably different. As we head into 2024, personalization and retention are poised to become the driving forces behind how brands connect with customers and keep them coming back.You’ll need to know your customers inside and out through data-driven insights and anticipate what they want before they even know they want it.

Simply putting products on a website and waiting for people to buy won’t cut it. Customers today expect tailored experiences that demonstrate you understand their unique needs and preferences. Personalization will be the key to gaining a competitive advantage and winning over new customers. At the same time, brands will need to double down on retention as acquiring new customers becomes more difficult and expensive.

The brands that build authentic connections and lasting customer relationships will be poised to thrive. The future is fast approaching—are you ready to meet your customers’ needs in a whole new way? Success is just on the horizon if you make the right moves today.

Using Data to Build Emotional Connections To Consumers

“The meaningful connection between consumers and their chosen brands. It is integral to how individuals decide to choose one brand or product over another.”

In 2024, e-commerce will be defined by how well brands can leverage data and technology to tailor the customer experience to individual needs and keep shoppers coming back.

Analyzing information like purchase history, browsing data, and customer service interactions is no longer enough to gain insights into your customers’ interests, priorities, and pain points. Brands need to look for trends across broad segments, but also examine data at an individual level.

As data deprecation continues to curtail access to traditional data sources, the value of zero-party data will rise because it’s transparent, consented to, and focused on preferences and intent, not just past purchases. This and the rising costs of performance media are the key drivers shifting marketers spending to the brand and its owned channels (owned channels refer to platforms that brands have full control over and customers openly and willingly share) to drive sales.

You must earn your customer's data, and too many marketers mistakenly believe more data from more sources will lead to a better understanding of the customer.B2C marketers’ top challenge in achieving their marketing goal in 2022 was the inability to manage data quality. Therefore, the focus on data volume only increases this challenge and leads to reliance on inferred data or seedy third-party data that adds noise and inaccuracy.

71% of marketers are expected to spend more on brand marketing to cultivate emotional connections with customers.

Owned channels will be the critical driver for personalization

You'll gain a competitive advantage by using first-and-zero-party to deeply understand your customers, deliver personalized experiences, and build emotional connections. Marketers gain the insights required to customize content, product recommendations, marketing messages, and more for each customer. Personalized experiences should feel natural and helpful, not creepy.

Using data increases the focus on relevance, helpfulness, and the human behind each data point.

In just a few years, personalization and retention will no longer be differentiators but necessities. E-commerce will center around the customer in an intensely customized fashion. Companies should start now to gain a deep understanding of their customers, strengthen bonds, and build experiences and journeys that keep them engaged for the long run. The future is fast approaching, and the e-commerce players who make personalization and retention their top priorities today will be the winners of the future. You can get ahead of the trends and shape your e-commerce strategy for success in 2024 and beyond. The time to act is now.

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