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Marketing trends
for consumer brands 2022
Smart Insights' analysis of 9 key future market trends with examples from
forward-thinking consumer brands
INTRODUCTION��������������������������������������������������������������������������������� 2
AUGMENTED OMNICHANNEL��������������������������������������������������������������� 6
DIGITAL TRANSFORMATION���������������������������������������������������������������11
VOICE SEARCH����������������������������������������������������������������������������������14
VIDEO CONTENT�������������������������������������������������������������������������������17
MICRO-INFLUENCER MARKETING��������������������������������������������������������23
SEAMLESS CHECKOUT�����������������������������������������������������������������������26
HYPER PERSONALIZATION�����������������������������������������������������������������29
VALUE-LED CONSUMER����������������������������������������������������������������������34
CONCLUSION�����������������������������������������������������������������������������������37
Foreword
Digital technologies bring many new opportunities for innovation in marketing for consumer
brands.
Often with substantial budgets and a clear vision, strong brands are well-placed to adapt, plan and
execute new marketing techniques that can set them apart from their competitors.
As brands often operate in highly competitive markets, reviewing the opportunities from the
latest trends is useful to identify potential improvements. The next best alternative is usually
readily available via a multitude of channels, and forward-thinking brands will always use every
competitive advantage to outsmart their rivals.
Reviewing options to exploit each stage of the customer lifecycle is therefore imperative to any
brand, whether existing or emerging.
This report will share examples of the latest trends and techniques for brands to suggest
opportunities for brands to improve their marketing strategies.
We will cover nine of the most significant trends and explain how a brand can apply them to the
Reach, Act, Convert and Engage stages of the RACE Marketing Framework.
More than 150,000 Free members use our blog, sample marketing templates and weekly Digital
Marketing Essentials newsletter to follow best practices and keep up to date with the developments
that matter in digital marketing.
Thousands of Individual and Business members from over 170 countries use our premium planning
and management toolkits, Learning Paths templates, guides, and video courses to map, plan, and
manage their marketing using the Smart Insights RACE Growth Process and Framework.
The Smart Insights RACE Growth Process enables you to define and implement a market-leading
omnichannel marketing strategy focused on your customer lifecycle.
The RACE Framework is composed of five essential stages that break down into the 25 core
activities which must be optimized to achieve integrated marketing across your customer lifecycle.
Each of these areas is supported by comprehensive online training, tools and templates which will
help you upskill your team, plan and implement your strategy, and achieve your goals.
Learn more about the RACE Framework and how it can help you improve your marketing.
1 PLAN
Define your goals and strategy
2 REACH
Grow
your audience media
using paid, owned and earned
3 ACT
Prompt int
eractions, subscribers and leads
4 CONVERT
Achieve sales online or offline
5 ENGAGE
Encourage repeat business
RE E
- A U TO M AT
<
They have been forced out of traditional habits and thrown into new interactions with brands.
Consumers are adopting channels they may never have previously considered and now have
different demands and expectations.
The shift to digital has touched almost every sector and industry. Despite the uncertain economic
outlook, budget cuts have tended not to impact investment in technology.
Many of these changes were already happening albeit slowly, but now have more weight in
influencing marketing trends in the post-pandemic era.
As time goes by, these ‘new normal’ behaviours are becoming embedded, and demands are only
increasing.
With the shutdowns of Covid-19 however, the mindset has changed. Today’s consumer, who hasn’t
been able to travel, eat out, or visit the theatre, for example, has recalibrated what they desire. No
longer is content solely focused on aesthetics. Instead, consumers have embraced the changes
that technology brings to focus on enjoyment and self-development rather than extroverted
experiences.
This has created an interesting opportunity for brands to provide more personal experiences, and
to build a tangible relationship with a consumer.
Although the desire to move towards digital transformation is not new, it has accelerated at
an unprecedented rate. For many organizations, transformation has been fast-tracked out of
necessity rather than following the strategic roadmap.
Those more agile organizations who have invested in technology have responded with greater
success. Smarter businesses have realised the importance of omnichannel marketing, new
perspectives on traditional stages of the acquisition journey, and how to break down barriers.
Progress for larger more traditional business models on the other hand has been slower.
The marketing trends discussed in this report offer businesses the opportunity to radically
reinvent themselves to keep pace with new advances and meet customer expectations.
The RACE framework covers all aspects of a customer lifecycle and helps you to define a true
omnichannel strategy. This report begins with the Reach stage of RACE, which focuses on
techniques for growing your audience and increasing awareness. Your key measures at this stage
are audience volume, quality, value and cost (VQVC).
John Bowden, Senior VP of Customer Care at Time Warner Cable, clarifies how multichannel
differs from omnichannel:
"Multichannel is an operational view – how you allow the customer to complete transactions in each channel.
Omnichannel, however, is viewing the experience through the eyes of your customer, orchestrating the
customer experience across all channels so that it is seamless, integrated, and consistent. Omnichannel
anticipates that customers may start in one channel and move to another as they progress to a resolution.
Making these complex ‘hand-offs’ between channels must be fluid for the customer. Simply put, omnichannel
is multichannel done right!"
Today’s interactions are happening in many different contexts. Consumers are browsing at home,
on-the-go and on the high street.
In 2020, UK online sales growth rose by 36.6%, but despite this, in-store is still critical. In fact,
for many brands, the sweet spot will be a blend of channels and a mindset that considers all the
channels at once; omnichannel.
“The high street is not dead – it’s just evolving to suit a modern way of life. There’s no question that high
streets will continue to play an important role in all our lives.”
Marketing using augmented and virtual reality allows brands to craft experiences, engage
consumers and encourage conversions in interesting ways. Artificial intelligence and 3D
technologies can therefore transform the heart of omnichannel, creating personal experiences to
interact with brands, both on- and offline.
Done properly, augmented experiences can help consumers to engage with brands, shop with
more confidence, and configure a personalised service that feels authentic.
Augmented reality enables omnichannel experiences across the entire RACE journey. For the
purpose of this chapter, we will discuss how it can relate specifically to the REACH stage of the
process.
AR can shorten sales cycles, reduce the cost of marketing and sales logistics, and immerse
customers to set brands apart from rivals.
The potential reach of AR shows is massive, and this shows that there's a huge potential as a
technique to entice audiences and add them to the marketing funnel. A report by Deloitte shows
that there are over 1 billion smartphones out there capable of delivering an augmented experience
and over 100 million consumers are likely to shop using augmented reality (AR) within the next
year.
A global survey by Nielsen showed that consumers listed augmented/virtual reality (VR) as the top
technology they’re seeking to assist, amplify, and augment their daily lives. Back in 2019, around
51% of them stated that they would be willing to use AR/VR if it were available.
Speeding forward to 2021, with the expedited investment in technology, this is now a reality for
consumer brands.
To support it, Burberry partnered with Snapchat to release an in-store gamified experience. By
scanning the Snapcodes embedded in the pop-ups, players were transported into the world of
Burberry’s Animal Kingdom and see the animals around them come to life. The experience allowed
Snapchat users to create their own content to share on their social media platforms, helping to
amplify reach of the campaign.
Brands are using VR to offer a digital experience in place of a physical one, which can promote
products and services.
As well as promoting existing products, VR can also showcase development to spark interest in
consumers. This can elicit investment from prospects but also allow for open feedback. With this
kind of immersive experience, consumers are choosing to interact with a brand.
The experience allowed consumers to visit the children of a school which had received their gifted
shoes to see first-hand where their donations were going. Through the power of VR technology,
TOMs was able to create a truly intimate and powerful experience.
Recommendation
Our interactive Social Media Marketing Learning Path is packed with actionable advice to help
you improve your planning and management of social activities. Particularly relevant to this trend
is our module covering the latest social media developments, which focuses on new and exciting
methods of connecting with and engaging audiences
Tools such as Vuforia and Wikitude can provide immersive experiences to customers.
Using the feature, customers could point the mobile device at any space in the lounge using the
camera function, and then move the piece around the room in real-time and to scale.
Results: 90% of DFS customers are said to research items online first. Using the AR tools, customers
have been able to use smartphones to visualise a wider range of models and colours in their own
living space without an initial visit to a store.
Through a shared web-to-store customer basket, customers are then able to create an editable
shortlist of preferred options to take into the showroom having made an online appointment.
Recommendation
This blog outlines five ways that you can implement AR in your marketing strategy. Each application
has a particular focus on AR's ability to support the Reach stage of RACE by raising awareness and
growing your audience. The blog also features one of our most popular resources, the Marketing
technology and media innovation guide. This guide helps you identify the most important new
technologies for achieving your marketing goals, many of which will be of particular use when
building your brand's online footprint - whether through paid or organic activities.
Without a doubt, the world of consumer marketing has transformed beyond recognition in the
past 18 months.
“Lockdown may leave a lasting digital legacy. The coronavirus has radically changed the way we live, work
and communicate online, with millions of people using online video services for the first time."
Today’s consumer has higher expectations of service delivery and they demand it at speed. Apart
from Covid-19's impacts, it is no longer acceptable to be asked to wait. We are very much living in
the ‘now generation’ and, to keep pace, the digital revolution has stepped up a gear.
As consumers have spent more time online, their expectations of those digital experiences have
never been higher. As activities taking place in the Reach stage of the RACE Framework are some
of the first contact your audience may have with you, it is all the more crucial that this contact is
smooth, quick and of very high quality.
Many brands were already well underway with transforming their digital capabilities to meet
customer needs, and COVID-19 just became the catalyst. Organizations were working hard to
make this shift to become a digital-first business. Others had taken small steps but were forced
into speedier adoption out of necessity. The pandemic has therefore compelled both businesses
and consumers to expedite the process.
Salesforce surveyed consumers after the pandemic and found that 88% of them expect
companies to accelerate digital initiatives due to COVID-19.
This section focuses on how brands must meet the increasing demands of consumers in delivering
exceptional service as part of the REACH stage.
Ofcom reported that in the 12 months leading to February 2020, of UK online adults:
þ 52% were sending daily text messages using messaging platforms such as WhatsApp and
Facebook Messenger
þ 41% used SMS daily
þ 26% used emails daily
þ 31% made of online voice calls
þ 38% made mobile calls
The objective is therefore not to look at the activities of the marketing strategy but more so about
how the strategy intends to provide them to align with consumer behaviours
To learn more about the best practices for structuring digital communication goals and objectives,
check out our interactive Learning Path module on setting digital marketing goals and objectives.
This module covers the VQVC framework identified in the first trend and helps you apply it to
set SMART objectives and review results. A perfect counterpart to this module is out incredibly
popular RACE Digital Marketing Dashboard, which can be integrated with Google Analytics to
help you review your performance across each stage of the RACE Framework.
This means the relationship between a brand and a consumer is critical to the lifecycle. Moreover,
today’s consumer is more aware than ever of the role that brands play in their day-to-day lives
and limitations in service delivery are more transparent.
Brands must move away from a reactive digital approach to align themselves to this growing trend
of consumerism - especially at the REACH stage where information that will influence their choice
is gathered.
To truly achieve this, organizations must set digital marketing maturity as the objective. Making
this an achievable KPI will help to get engagement across teams, regions and geographical
departments to make the shift towards a digital-first marketing strategy.
If you're reading this and wondering about your own organization's Digital Marketing Maturity,
don't worry - you're not alone! Our Digital Marketing Maturity Benchmarks resource will help you
benchmark your business' progress and understand clear, actionable routes for improvement,
broken down into each stage of the RACE Framework.
Data-driven strategy
These consumer habits are here to stay.
Existing customers expect the brands that they interact with to know who they are. It is taken for
granted that the end-to-end journey is joined up for a more streamlined and efficient experience.
Where this is missing, today’s consumer is easily frustrated. Lack of this customer insight can
duplicate interactions, generic communications, or an impersonal service. One bad experience
can indefinitely destroy a customer relationship or view of a brand.
70% of millennials are frustrated with brands sending irrelevant emails, but there is no reason
for this to happen in a data-driven landscape. Brands collect huge volumes of information about
who their customers are and what drives their behaviour. The task is then to use the intelligence to
refine strategies that will create brand experiences that consumers want.
Connecting the dots across devices so that the consumer receives a joined-up experience is where
businesses are focusing their investment over the next five years.
Voice technology is already a huge part of our everyday life, and only looks set to continue as a
growing trend in how consumers find and interact with brands. Effective and efficient voice-based
commerce is poised to transform the online shopping experience globally.
Google reported that 27% of the online global population is using voice search on mobile. That
doesn’t even count podcasts, other search engines, apps, smart speakers, or the Clubhouse app.
Global smart speaker sales alone reached an all-time high of 150 million units in 2020. Smart
speakers such as Amazon Alexa, Google Home and Apple HomePod have therefore become
popular features in a lot of households, connecting the home, brand and the person.
This is a great example of ‘connected commerce’. It essentially facilitates transactions at any time,
anywhere, and on any device for a truly omnichannel experience.
Voice tasks
Voice searches tend to be carried out for task-based convenience. For example, listening to the
news, checking the weather or turning the lights on.
That said, over time voice is becoming more heavily used in the exploratory stages of the
customer lifecycle. For example, providing inspiration for events or holiday destinations.
With growing trends in the number of consumers conducting voice searches, the recommendation
is to develop content so that it is compatible with voice search.
Now, content must be optimized for bots, eyeballs and humans who are asking direct questions.
Ultimately, voice users are looking for greater sophistication across platforms, devices and
contexts that they use. Reflecting this, businesses are developing ‘skills’ through smart speakers
to take advantage of the move towards voice.
Alexa then returned ideas of how to surprise loved ones, going on to ask the user if they wanted
to add a Cadbury Dairy Milk Silk Heart Pop chocolate bar to their Amazon shopping cart. It would
then narrate a description of the item, creating a seamless transaction entirely within the platform.
Depending on your company's internal capacity, it may be necessary to work with third-party
agency to develop an offering like this but, as the technology has been in development for a few
years now, prices are stabilising.
To begin your journey to improving your company's website and its contribution to the business,
why not take a look at our Digital Experience Learning Path? It's packed with concepts, examples
and opportunities to test your understanding and ultimately apply a data-driven approach to
improving how users interact with your site.
Video marketing isn’t a new trend, but its usage has risen steeply in the last couple of years. Video
has become particularly key to business since the pandemic.
The number of businesses using video as a marketing tool, overall, has increased from 61% to
85% from 2016 to 2020.
Wyzowl
Types and applications of video are endless as barriers to production have eroded. Previously,
video content would have required a team of professionals, and a significant budget. In 2021,
brands can produce engaging videos of reasonable complexity using a smartphone and editing
software, or templates and average desktops.
Despite this, it is still an area that brands shy away from, ultimately losing out to competitors who
have video built into their strategy.
Video content has the potential to drive customers to a website for lead generation, and
increase the average time spent on a page. Once there, an effective video can help consumers to
understand products or services, but also reduce support calls. In general, at any point of the
RACE Framework, video content has the potential to generate positive ROI.
Video content has become a tool for all stages of RACE, but we are particularly interested in how
it can help to elicit action, turning a prospect into a consumer.
The most alluring factors about video content are that it can provide a lot of information quickly,
and it is an easy-to-consume medium. In fact, 66% of consumers prefer to watch a short video to
learn about a product or service than to read an article.
As a tool, it is an integral part of the online buying journey, but can also be effective for operational,
HR, leadership, customer support, finance and management functions.
Typically, the most popular uses are for explainer videos (72%), presentation (49%), testimonials
(48%), and sales and video ads (42% each).
Research showed that back in 2018, consumers were 85% more likely to buy a product after
watching a product video. Fast forward to 2021 and we’ve seen this influencing all consumer types.
In fact, by 2022, video viewing will account for 82% of all internet traffic.
Onsite videos
According to MarketingSherpa, landing pages
with video are 53% more likely to show up
among the first results in searches.
Live stream
Lives streams have been on the roster of all the social media channels for a while, and they offer a
tool to engage with viewers in real-time that shouldn’t be overlooked.
Brands can promote interviews, show off products or features, host events and more. This
immediacy conveys authenticity which is something that consumers demand in 2021. Going
Live therefore boosts brand credibility as they provide a platform to demonstrate immediate
knowledge.
Viewers of live video have been found to spend over 8 times longer watching live video than video
on-demand.
Short form
TikTok, Snapchat and Instagram Reels have embedded themselves as credible video tools, with
brands seeing huge success. TikTok is expected to hit 1.2 billion average monthly active users in
2021.
Perhaps to combat this, it is rumoured that Reels will be developed to offer opportunities to
monetise content and access more enhanced editing tools so if you're not on TikTok but are
using Instagram, you could still
capitalize on short form videos.
Personalized video
Personalized videos can incorporate an individual’s personal details such as name or age into
content specifically for them.
Typically, this is a base video that can then be edited with limited functionality to create a unique
sharable video.
Sites such as JibJab allow users to create funny videos and e-cards that can be customized to
include the user, friends and family. Other brands offer the ability to ‘wear’ products or appear in
new locations, generating content that people want to share.
Shoppable videos
Shoppable videos are a form of interactive video that allows the viewer to purchase items directly
from a video. They typically feature a drop-down menu linking to a website. This removes the step
where a user must search for a product, making the conversion process faster and easier.
This form of video is already reported to be delivering higher engagement rates than display
adverts.
Solution: United created a 15-second video featuring people on holiday in breath-taking places,
driving them to the step where they book a flight. The video featured a strong CTA, clickable link,
and was shown to people who were already in the process.
Results: In just one month, 52% of conversions attributed to YouTube were click-through
conversions directly from the ad.
Recommendation
If you're already creating video content, then it is vital you make sure it is working as hard as it
can for your organization. That's where our interactive Learning Path module on reviewing and
improving video search effectiveness comes in. In this advanced fifteen minute module, you'll
be briefed on how to make sure your existing and future video content gets seen and supports
your funnel.
Social commerce, or ‘social shopping’, is a popular results-driven marketing tool that is increasingly
becoming embedded into brand strategies.
It is the environment where social media meets e-commerce. Rather than simply being used for
marketing, social commerce allows the sale to take place on social media platforms.
It transforms social from channel largely used for discovery to a sales channel, primed to encourage
purchases. Finder research shows that 2020 saw a 21% uplift in time spent on social media in
2020 attributed to the product discovery element.
Social commerce provides a valuable link at the Convert stage of the RACE Framework. Between
2021 and 2028, the global market is expected to grow by 28% a year to almost $3.4 trillion, so it is
definitely a trend for brands to understand.
Product discovery
According to statistics from Instagram, 70% of shopping enthusiasts turn to the platform to
discover products.
Instagram alone has stated that over 200 million platform users visit at least one Business Profile
daily.
Instagram shoppable feeds, UGC galleries and shoppable visual galleries are all examples of social
shopping that brands have adopted.
UGC Galleries
It’s not a approach for brands to post rich, engaging content to drive interest amongst potential
purchasers as part of a joined-up digital strategy. With social commerce however, user-generated
content (UGC) is the Holy Grail, where consumers have low trust in crafted brand messaging.
More than 92% of consumers trust earned media more than other forms of advertising.
Consumers are sceptical about polished marketing messages, whereas UGC shows authenticity.
Authenticity is a key trend in consumer marketing, whether it is values such as sustainability,
localness, or social conscience, it’s a big pull for today’s consumer.
By incorporating video into more communications, it conveys a perception that the brand is open
to conversation. Using UGC allows consumers to see
their peers using or interacting with a product in a
way that they would like to.
While Instagram is great for sharing creative and engaging visual content, it’s also an effective
platform for driving traffic and sales.
No longer is social media simply about sharing content and links that can drive users to a platform
where they can purchase. Shoppable Instagram feeds facilitate an end-to-end conversion journey.
Using the technology, brands can sell their products through content, allowing the consumer to
discover, consider and purchase a product all within a social platform.
Instagram shopping makes it easy for people to shop at the point of discovery:
þ Shops: A customizable storefront that lets people shop directly on business profiles.
þ Shopping Tags: Tags that feature products from a catalogue can direct customers to
purchase those products from a website or in-app.
þ Shop in Explore: A tab in Explore that lets people browse tagged shoppable content from
brands and creators.
þ Collections: A set of products that businesses can curate for their shop to help customers
find the products they love.
þ Product Detail Page: A product-focused page showing relevant information for an item, such
as pricing and product descriptions. These details are pulled from your product catalogue.
þ Ads with Product Tags: Businesses can create new ads with product tags or boost existing
shopping posts in Ads Manager and the Instagram app, to increase the reach of their
shoppable content. These ads drive conversions, link clicks and engagement.
Currently, these features are available across most territories, but checkout is only available to
customers in the US and a select number of businesses.
PopShop Live - Brands can create a popup store, curate inventory, schedule and host live shows
from anywhere using their smartphones.
Amazon Live - Brands and influencers can use Amazon Live to connect with interested shoppers
in real-time via interactive shoppable videos.
MikMak – A multichannel marketing platform with an in-built ‘where to buy’ feature that links
shoppers to more than 200 retailers. Users can checkout without leaving the platform, creating a
seamless shopping experience.
Buywith - A video shopping platform that lets influencers shop with their followers using screen
sharing. Buywith is a collaborative shopping experience using screen sharing, text, or video chat.
According to Instagram, 87% of people say that influencers have inspired them to make a
purchase.
Influencer marketing is a key element in the marketing mix for consumer brands and is now
considered to be a mainstream digital marketing tool. The concept uses the idea of celebrity
endorsement within the context of social media content.
Influencer marketing has been around for a while now, and typically brands would look at the
size of the following to place a value on the importance of the partnership. In doing so, a brand
could expect to attract high reach numbers, but also a bigger cost for access to the audience.
Using followers as a metric doesn’t always equate to the most efficient response.
Building a relationship with a micro-influencer is a growing trend that brands are adopting to aid
the conversion process.
For example:
In this example, the relationship between a relevant brand and influencer B will elicit a better
response because the link is authentic. The brand is one which the hyper-engaged community
may be inclined to believe in as the person whose opinions matter has endorsed them. They are
perceived to be ‘just like me’ rather than have an unachievable lifestyle.
The collaboration with influencer A and the brand may be less transparent and harder to
convince.
For this reason, in the context of the RACE Framework, using micro-influencers who have a loyal
and engaged following in a particular vertical can support the Convert stage.
Longer-term partnerships
Influencer marketing has previously been driven by one-off projects. Ads, sponsored posts or
collaborations to fit with a corporate campaign, for example. Trends show that it is much harder
to quantify the ROI of influencer marketing on this basis.
Brands are moving towards ongoing projects as they attempt to measure the impact that the
tool has on the conversion rate. Ultimately, depending on the industry, product or ticket price, it
can take time to make a sale. By engaging with a micro-influencer to create a strategic partner
over a longer period, such as a series of sponsored posts, a brand can build more loyalty and a
more legitimate relationship to support the purchase decision process.
Shoppable content
As discussed already, social commerce is a key trend that all brands should be aware of.
Shoppable videos and shoppable posts can create a seamless user experience directly from the
influencer to the brand and play a key role in the social commerce strategy.
Brands are increasingly asking micro-influencer to incorporate social shopping into partnerships.
You can read more here or why not complete our interactive Learning Path module on
influencer marketing? You'll learn specifically what different kinds of influencers you can
work with, the tools you can use to find them, and the success factors of strategic influencer
relationship management.
Solution: Iceland realised that the campaigns weren’t making the right impact because the
celebrities weren’t ‘real’ people. They changed tack and began to work with 50 micro-influencers
over a year-long strategy with parenting and everyday food bloggers to capture some UGC. They
also implemented social listening and paid advertising to share the message.
Results: Iceland reported a 55% retention rate on Facebook videos (59% on YouTube), and an
approval rating increase from 10% to 70%.
With so many consumers turning to online shopping during the Coronavirus pandemic, brands
are having to pay more attention to their checkout process. The entire customer journey affects
today’s perception of the digital brand and how a customer chooses to engage with it. The faster
and simpler the checkout process, the better the experience.
Research by Worldpay found that 19% of users are frustrated by the checkout and payment
process. Almost a quarter (23%) were frustrated by comparing products on a site.
33% abandon a sale because they are required to create an account to purchase a product online
and 25% exit the checkout when they find that additional payment fees are added e.g., from using
a credit card.
Improving the checkout process so that it is a seamless experience is therefore something that
brands should focus on during the Convert stage of RACE.
As well as incorporating video content and augmented reality into the shopping process, this
chapter will focus on enhancements to the purchase process to deliver a seamless checkout.
A study by the Futurist Group showed that 38% of consumers now perceive contactless as a basic
feature of payments. It is only expected to continue the same trajectory, with over half the world
forecast to be using mobile wallets by 2024.
Brand trust and credibility are built through convenience by offering choices like mobile payments
such as Apple Pay or Google/Android Pay. Streamlining the checkout process with multiple options
can reduce the steps needed to make a purchase.
Chatbots
We’ve already discussed AI technologies that can be used as part of an omnichannel experience.
For the purposes of the Convert stage of RACE, we’re going to focus on how they can be applied to
the checkout process. Chatbots are an obvious way to enhance the checkout and avoid additional
barriers that may prevent a sale.
According to Drift's 2020 State of Conversational Marketing report, chatbot usage saw a dramatic
92% increase from 2019 to 2020, likely spurred by brands seeing it as an effective and low cost
customer service option during the pandemic.
Brands can use chatbots to engage with customers once they are at the point of conversion. 94%
of online shoppers seek purchase information before actually buying, so chatbots can be used
on a landing page to aid this process. The technology can be used to direct consumers to the
information that they need in order to complete their purchase, such as FAQs.
By guiding the consumer through the process, chatbots can help to reduce bounce rate but also
find the right products.
Split payments
Buy now pay later (BNPL) is a phrase that has been used when talking about larger purchases such
as cars or home furnishing for years. However, savvy brands have realised that credit checking
technologies can also be implemented to offer the same terms on smaller items.
Credit is commonly offered through services such as Klarna and Clearpay, with a low or 0% interest
fee. This vital step can boost the confidence of the consumer, knowing that they can checkout to
receive their items on the standard terms, but split their payments into more manageable chunks.
The 2021 edition of The Global Payments Report by Worldpay predicts BNPL transactions in the
UK will grow 29% year-on-year, on course to double market share to 10% by 2024.
“We predict that the BNPL sector will not slow down - with the UK market seeing double digit expansion over
the next few years. As this happens, it’s important that the frameworks that govern and protect consumers
and merchants also adapt to ensure that there continues to be trust and reliability in payments technology.”
Recommendation
As we've seen, making your checkout process as smooth and simple as possible is a must.
That's why we created our module on improving basket, checkout and form pages in our
Digital Experience Learning Path. You'll discover how to plan for and implement a process to
streamline every step of the checkout process, all in an easy to digest format.
Hyper-personalization takes segmentation to another level to improve engagement rates and ROI.
It allows organizations to build a unique profile of consumers that learns and adapts to behaviour
over time. Tools can collect demographics, location and browsing history to deliver optimal
customer experiences in real-time, targeted to their preferences.
In chapter two, we touched on how digital experience can impact loyalty when trying to reach
customers. This section develops the idea further in the context of the Engage stage of the RACE
lifecycle. That is, the stage focused on encouraging repeat business, brand loyalty and advocacy.
Personalized content
Brands now understand that a one-size-fits-all approach isn’t effective in engaging with customers
and prospects.
Consumers care even more about experience than before the pandemic when deciding which
companies to support or buy from and they only want to see the content that is relevant to them.
A Deloitte study found that 90% of customers said personalized adverts appealed to them.
Not shaping content in this way will be damaging to a potential relationship with a brand.
To keep pace, AI is being used increasingly to provide uniquely personalized campaigns, rather
than segment-based CRM marketing.
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Artificial Intelligence has been discussed in marketing for some time, and we covered how it can
be used to create augmented experiences for consumers to interact with brands in chapter one.
Web personalization doesn't have to be hard, but knowing where to start can be. That's where our
interactive personalization module comes in. We made it specifically to help guide you through
a process where you can plan, manage and optimize your organization's approach to serving
personalized content to your audience. Get started today.
The diagram below shows how AI can play a part in all stages of the RACE Framework.
As well as aiding loyalty, customer satisfaction and willingness to purchase, this strategy aids
overall marketing effectiveness.
Brands like Amazon, Starbucks, and Spotify use predictive personalization driven by AI and
machine learning to power individual recommendation engines.
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Hyper-personalization strategy
Accenture finds that 91% of consumers are more likely to buy from brands that offer relevant
recommendations and a personalized experience.
If the data is comprehensive and accurate, organizations can use hyper-personalization to provide
personalised:
þ Content e.g. dynamic content based on their search terms
þ Messaging e.g. ‘the products you last looked at are selling fast’
þ Adverts e.g. based on prior browsing behaviour
þ Product recommendations e.g. based on previous purchases
þ AI chatbots e.g. to point the user to the content they are looking for
þ Live chat help e.g. to guide a consumer through a process or query
Reaching the point where the data and tools work together to bring it all to life requires hyper-
personalization to be at the heart of the strategy.
In the diagram above from RRD, the successful strategy involves these six steps:
1. Mine the data so that it provides the insight for hyper-personalization.
2. Craft a personal message to address customer needs.
3. Personalise an offer to reflect previous engagements.
4. Combine with multi-channel marketing across devices.
5. Apply predictive analytics to deliver specific messages at optimal times.
6. Test, test and test again (incorporating insight and using that to evolve the process).
Trust in brands and the power of planned messaging has started to erode. No longer does the
consumer simply accept what the organization is saying, they are increasingly influenced by how
it is behaving and what others are saying about it. In fact, Hubspot found that 81% of consumers
trust the recommendations of friends and family over those from a business.
The customer experience engagement and favourable reputation, and the potential for powerful
earned media. These recommendations and user-generated content have more value in
influencing a conversion – particularly where consumer trust is low. 76% of global customers say
that they always recommend a brand that they trust when asked.
Therefore, now is the time to pay more attention to servicing customers with value-add and
creating a more personalised experience that they are willing to share.
You can learn how to bring a more personalized experience to your customers by completing
our Learning Path module on Web Personalization. You'll discover how to better communicate
with your audience and motivate them to convert by crafting a personalized buying journey that
resonates with them as individuals using a range of tools and techniques.
To understand more about bringing an extra edge to your marketing efforts - with a particular
focus on the Engage stage of the RACE Framework - our Digital Experience Learning Path is the
perfect place to start. Getting started is hassle-free and you can dip in and out of our 15-minute
modules as you please.
Environmental factors in the outside world have compelled consumers to pay more attention to
what the brands that they choose to interact with stand for.
They are interested in a wider range of values when building trust in a brand, beyond simply
shopping around for the cheapest deals. Relationships are no longer purely transactional; they
are based on emotional investment.
Tapping into these values has become an immediate need for brands at the ENGAGE stage of the
RACE framework.
Mintel research shows that 20% of UK consumers say they often shop with a retailer that supports
a cause they believe in.
Protecting the planet for future generations is driving people to fight for positive change. Societal
issues such as race, gender inequality and environmental factors are increasingly important to
today’s consumer and influencing how brands are perceived.
Brands that are not taking this into consideration could face a potential boycott, propelled by
savvy consumers who can use channels such as social media to create and spread damaging
conversation.
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To create true engagement with the conscious consumer, brands must ensure that they contribute
a positive impact on the local and global community.
Community power
Intensified by the pandemic, consumers are joining like-minded communities to connect and
support each other. There are general feelings of belonging and togetherness, driving the power
of community engagement.
41% of UK consumers say they feel more connected to their neighbours due to COVID-19.
This provides opportunities for brands to offer support, connection, and guidance as a way of
engaging across markets. In doing so, brands can form emotional bonds with consumers.
Brands can elevate their values and associate image by promoting unity, consumer heritage, or
connection with a community. This is a long-term commitment, however, as customers will walk
away from brands if the trust is lost.
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Transparency in privacy
Today’s consumer is increasingly aware of surveillance technologies, data collection, and how
their personal information will be used.
Recommendation
It's clear that privacy needs to be taken extremely seriously. This is not just because of the
various legal consequences getting it wrong could bring, but also because attention to privacy
is a huge trust factor for consumers. We've created an interactive briefing to help you get to grips
with privacy law requirements for digital communications. This module focuses on consumer
privacy and data protection laws that affect the main digital marketing channels including email
marketing, search marketing, social media marketing, online PR and websites in general.
The events of the past 18 months have fundamentally changed how consumers perceive brands
and use technology to interact with them.
IBM's US Retail Index report found that the pandemic has accelerated the shift away from physical
stores to e-commerce by about five years. As a result, it is perhaps no surprise that department
store giants such as the now collapsed UK-based Debenhams have struggled and failed to match
pre-pandemic sales figures.
Brands have been allowed to create react and adapt to build a tangible relationship with a
consumer, and those not acting on the change in consumer attitudes are being left behind.
Today’s consumers will no longer accept a ‘one size fits all’ approach or consent to what a brand is
doing if they don’t believe in the same core values. They will simply engage with other brands who
they resonate with and adopt their corresponding communities.
Brands must respond with engaging technological offerings that reflect the needs and wants of
the ever-demanding consumer.
What remains to be seen is if some of the behaviours seen during the global pandemic become
the norm as and when things return to 'normal'. Cultural shifts often come - and stay - due to huge
global events and the already clear predilection for shopping on the go, from the comfort of home,
during a commute or literally anywhere, is quite likely one of these shifts.
Retailers that have historically had low interest in moving online or investing further in their offering
will have seen and felt the impetus to do so. Many of the takeaways in this report will be achievable
by any company and with minimal budget but can bring a real impact to how you perform online
and how you define your strategy for the future.
If ever there was a time to improve how you plan, manage and optimize your marketing
efforts, it surely is now.
You have identified key areas for improvement and now you need to create a digital
strategy, organize your activities, and put your plan into action.
Whether you need to create an integrated omnichannel plan, learn best practices for
digital channels or develop your team skills, we've got you covered .
Smart Insights offers digital learning modules, guides, and templates across all
channels of digital marketing. With premium membership, youʼll be able to take
action directly and see results sooner.
Competition is fierce online. To win, you need to plan, manage and optimize your digital channels
against defined targets, SMART KPIs and a focused investment in content marketing, digital
media and experiences. We believe an integrated strategy is essential to define new
segmentation, targeting and position for your online value propositions.
Taking an approach that focuses on OSA - that is, Opportunity, Strategy and Action - is a great
process around which to build your journey towards more strategic digital marketing.
The graphic below outlines how using OSA can focus your thinking and maintain structure as you
progress through the RACE Growth System.
2. Strategy 3
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thousands of businesses of all sizes - and all over the world - improve
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