Where does the time go? As 2023 quickly comes to a close and we jump into 2024, the B2C landscape promises to hold new opportunities to deepen customer relationships. How brands foster customer loyalty will bring some foundations back to the table and will launch new advances in customer management into action. Here are the top three B2C trends you can expect to see in 2024.
If the theme for 2020–2022 was ‘protect the customer relationship at all costs’, 2023 into 2024 will shift pressures to ‘develop a more reasonable relationship with customers.’
We can all agree that 2020–2022 brought about unprecedented challenges with unpredictable outcomes. The COVID-19 pandemic and the associated economic impact, supply chain disruptions, rising food prices, surging global inflation… the list goes on.
It’s unsurprising that 80% of global retail consumers said that knowing they were paying the lowest price for a product was important when choosing where to buy on an ongoing basis (Kognitiv Global Loyalty Insights, 2023). This price sensitivity puts pressure on brands to amplify generosity in savings, shipping, and the overall customer experiences.
With inflation forecast to drop under 4% in 2024, Kognitiv expects businesses will shift their focus aggressively back to profitability. We don’t expect to see brands being as ‘gracious’ with their customers; instead, they will ask them to demonstrate deeper commitment in exchange for receiving elevated experiences.
A great example of this is Delta’s announcement this fall. Delta Air Lines announced a major overhaul of its key value proposition for the customer relationship – its SkyMiles loyalty program. Beginning in 2024, gaining Diamond, Platinum, Gold, or Silver Medallion status will become more expensive for members. Delta continues to promise its investment in the customer experience for all SkyMiles members, such as delivering free Wi-Fi on all flights. However, starting in 2024, members will need to spend more to get more of the elevated benefits Delta had previously offered to members with status (e.g., free checked bags and drink vouchers).
Our POV at Kognitiv. It’s okay to share some of the load with your customers, but remember to keep the core value proposition top-of-mind. No one wants to deliver a message to their customers saying, “We probably went too far.”
A 2022 global survey revealed that 62% of customers would lose their loyalty to a brand if it provided a non-personalized experience — a 38% increase year-over-year. And while 75% of 2022 marketers said they thought they provided good or excellent personalized experiences, only 48% of customers said they received good or excellent personalized experiences from brands.
With the growing customer desire for personalization and the B2C demand for improved profitability, it’s no surprise that Kognitiv has seen an increased adoption of AI and machine learning tools by B2C brands. The rise of deep learning and new algorithms has enabled more accurate predictions and decision-making. As such, the Machine Learning market is expected to see significant growth in the coming years, with the global Machine Learning market size projected to reach US$528.10 billion by 2030.
Kognitiv estimates that brands can expect an increase of up to 25% in revenue through executing more relevant customer lifecycle experiences. With personalization layered on top of customer lifecycle optimization, opportunities for revenue growth reach 30%+. AI and machine learning-driven optimization enhances the journey toward customer loyalty, which means the delivery of personalization at scale becomes achievable in 2024.
What Kognitiv loves about this 2024 trend is that done well, personalization will not only drive revenue but also enable brands to take back control through offer relevancy and optimization.
While delivering more personalized experiences is expected to boost customer commitment, remember, globally, 73% of consumers have historically been likely to leave a brand if they have a poor and/or inconvenient shopping experience. Experience is just as important to customers as being able to get a product at a lower price from another retailer (Kognitiv Global Loyalty Insights, 2023).
As B2C organizations look to take back profitability and implement personalization strategies, we forecast (and recommend) that they also lean in on the core experiences that anchor customers to their brand.
When looking to identify what makes a strong core experience and what elevates customer loyalty, ask the following questions:
If you’d like to talk to us about how we can help you develop deeper customer engagement strategies, optimize your customer relationships, and personalize your customer experiences at scale, schedule a conversation with one of our experts. We’re excited to help you jump into 2024.