We've written before about the imminent difficulties privacy rules pose to our once infallible customer acquisition strategies, the opportunities that have opened up and the holy-grail of emerging territories that are zero and first-party data.

Did you know that advertising on Facebook, for example, already costs 47% more than the year before? Unsurprisingly, brands have responded by pushing ecommerce boundaries, investing in channels that allow greater autonomy over their online real estate. 

As Forbes puts it, 'Staying on top of e-commerce trends is not an option — it's a necessity… e-commerce will account for 20.4% of global retail sales by the end of 2022, up from only 10% five years; ago.' 

With the ecommerce space increasingly cramped, let's look at some rising trends to help brands stand out from the crowd.

PERSONALISATION

As part of the more significant shift towards first and zero-party data, brands serve individual users with nothing short of bespoke interactions. Maximising customer lifetime value with personalisation is a huge driver of customer retention.

But, as it turns out, there's a fine line between personalised and overfamiliar. As Shopify explains, 'Consumers are over three times more likely to abandon brands that "over-personalise," than brands that fail to personalise enough. Including too much personal data in customised communication can make consumers feel stalked by brands.'

But there is a nuance here, as consumers are willing to share personal information with brands that they feel align with their values, with 44% of consumers saying they're happy with brands they like using their personal information to deliver relevant content.

If businesses want long-term access to customer data, they need to do it in a way that feels authentic, open and trustworthy. As this Shopify report explains, 'in 2022, 42% of brands plan to offer their customers personalised product recommendations through tools like quizzes, custom mobile apps, and first-party or third-party behavioural data. And to encourage data sharing, 44% of brands already plan to be more transparent around how they use customer information.'

TRANSCREATION AND LOCALISATION

Standard language translation is no longer enough for brands that want to go global.

Well written marketing texts often include distinctions that don't necessarily convert through translation plug-ins, which is where transcreation comes in. Transcreation is about preserving your message's style, tone, and context in a new environment or market. 

But you can take this further still. Localisation is about thinking globally while acting locally. It's an awareness of how cultural nuances can influence adaptations for users in different countries or locales and can include everything from what a model is wearing in your images to the layout of your site.

MESSAGING APPS

We're about to witness a change in how we use and perceive messaging apps such as WhatsApp and Facebook Messenger. And those once clunky chatbots? They're getting smarter. Expect exchanges that are more akin to a digital sales assistant, able to recommend products and services actively and competently deal with even the most nuanced of requests.

As Anastasia Sviridenko writes for Shift 4 Shop,'Messaging apps have gone above and beyond their original purpose. Nowadays, they are utilitarian multi-tools that can do anything from looking up products to booking a restaurant to securing a flight. And with recent developments in in-app features, transferring customer support to messaging apps is more exciting than ever.'

VIDEO COMMERCE

As we've already seen from the rise of TikTok and the algorithm changes Instagram has made to support Reels, video content is king. And it's not going anywhere anytime soon.

Global Marketing Consultant Tim Parkin writes for Forbes, 'Video will replace static assets and become the cornerstone of all marketing campaigns… Social media and streaming TV platforms will introduce new advertising products that emphasise video. Even the retail experience will see innovations in using video to engage customers and drive revenue.'

AR-POWERED COMMERCE

From trying on sunglasses to seeing how a sofa fits into your living space, augmented reality (AR) has been making waves in ecommerce for some time. 

But, as Vogue Business reports, 'Despite being relatively mainstream, there is "unrealised potential"; only 3 per cent of US adults regularly use AR while shopping, while 39 per cent of respondents are interested in using it.'

And now, thanks to Snapchat, this once expensive and perhaps faddy technology is becoming accessible for all. The tech firm is on a mission to re-brand as a camera company rather than a social media corporation, having spotted a gap in the market for a good quality provider of affordable AR technology.

As Vogue Business continues, 'For the first time, brands can integrate these AR try-on tools within their apps, meaning that they don't have to develop or acquire this technology independently. Puma and Ralph Lauren are early testers.'

SUBSCRIPTIONS

Subscriptions will continue to grow through 2022 and beyond, with millennials and Gen Z making up most of the subscriber market. 

Forbes reports that 'Subscriptions aren't just for content anymore: Consumers can now subscribe to everything from pet products to luxury vehicles to sock-of-the-month clubs… According to a report from UBS, subscription business models could grow from a $650 billion market to a $1.5 trillion market between 2020 and 2025.'

MOBILE-COMMERCE

It's probably no surprise that mobile commerce, shopping online via a smartphone or tablet, features on this list. But what is significant is the rate at which the pandemic has accelerated its growth.

As Shopify explains, 'With brick-and-mortar stores shuttering overnight, shoppers flocked to the internet to buy their things. Experts say the pandemic accelerated the shift to online shopping by five years. In 2022, smartphone retail ecommerce sales are expected to pass $432 billion, up from $148 billion in 2018.'

BUY NOW PAY LATER (BNPL)

The chances are you've already clocked the likes of Klarna cropping up at the online checkout. But did you know this is part of a rapidly growing BNPL movement?

Essentially, Buy Now Pay Later services to offer the same benefits as credit cards, but without the long-term commitment, crippling interest fees or lengthy application process.

According to Futures Platform, 'Generation Z and younger Millennials are more cautious about spending, debt and hidden fees than previous generations. As digital-savvy consumers, they also have new demands for financial services. They seek convenience and ease of use, and they value products that integrate effortlessly into various other applications.'

This goes hand-in-hand with the rise of social ecommerce, where audiences can shop directly from apps such as Instagram and TikTok, without leaving the platform.

 

REFERRAL PROGRAMMES

Brands have always relied on peer-to-peer recommendations to do a portion of their marketing. It's a zero-cost method that builds trust in a way multi-million-pound budgets and the best marketing talent could only dream of.

But until recently, this has tended to happen organically, with brands only knowing hypothetically whether or not their customers are likely to act as ambassadors. 

Thanks to innovations in the e-commerce world, brands can build effective programmes around referrals, and it's proving profitable. As Big Commerce explains, 'Referral marketing is the secret strength that fuels some of the most successful startups. Lyft and Airbnb grew their customer base on referral marketing strategies and as a result, are two of the most well-known startups to date.'

Discover how R360 Growth can fuel sustainable profitability and long-term success with a robust loyalty strategy. Connect with us at hi@r360growth.com or via our online form here.

We look forward to exploring growth opportunities with you.

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