For business owners in the retail industry, 2023 was a year of challenges and changes due to issues with supply chain, inflationary pricing, and economic uncertainty. However, retail is still thriving, and some strong marketing trends stand out.
How can your retail or wholesale business stay ahead of the game in 2024? Here are 8 trends you should know about.
8 Marketing Trends to Inform Your Year
1. Discounts
Consumers are digging for deals year-round. In fact, 78% of online shoppers have decided against making a purchase because they didn't have a coupon.
Small retailers don’t have to offer constant discounts like big-box stores do to take advantage of this passion for deals. Instead, use flash sales and “lightning” deals to attract shoppers with marketing messages tailored to their browsing and buying history. Appeal to their fear of missing out by notifying them when inventory on a product they’re eyeing runs low.
Other types of discounting may include free shipping, loyalty rewards, buy one get one, and a free gift with their purchase.
2. Social media marketing
Social selling (buying directly through a social media site) is exploding. Social commerce is expected to make up nearly 7% of U.S. eCommerce sales by 2025, according to Mintel research. Nearly half (47%) of Americans say they have purchased through social media today.
Retailers should also continue focusing efforts on organic and paid social media marketing in 2024. Targeted advertisements and sponsored ads have proven to be a source of inspiration for purchases amongst all age groups. According to PWC’s Consumer Insights Survey, targeted ads and promotions are how 31% of respondents make a purchase decision.
Keep building relationships with your social media followers and they’ll be more likely to buy from you.
3. Voice search
More than half (58%) of consumers used voice search to find local businesses in 2023, Synup reports. Voice search drives more than $2 billion in sales and should be a critical part of your strategy to sell more and boost revenue.
Few users shop for retail products via voice—you can’t see or compare products through a smart speaker. But voice search will become an important way for prospective customers to locate your store or find out what deals and products you offer.
To stand out in voice search, which is more conversational than traditional search, here are some tips for optimizing your website for voice.
4. Marketing automation
Marketing automation software can help retailers reach specific customers with targeted offers and help wholesalers nurture prospective customers through the buying journey. You can find marketing automation tools to handle specific tasks (such as responding to leads forms) as well as all-in-one apps that manage a wide range of marketing activities.
Look for software that integrates with your existing apps (this feature list could help). Capterra, Software Advice and G2 Crowd offer ratings, reviews and software comparison tools to help you make the right choice.
5. Artificial intelligence (AI)
The global artificial intelligence in retail market size was valued at USD 5.50 billion last year and is projected to grow to USD 55.53 billion by 2030. By making personalized and predictive recommendations, AI can drastically improve customer experience and reduce cart abandonments. AI-powered bots can help customers self-serve and resolve issues faster, such as rescheduling a delivery or processing a return.
6. Personalization
Consumers are inundated with marketing messages. If you want yours to get noticed in 2024, you’ll need to personalize them. Over three-quarters of consumers (76%) say receiving personalized offers from businesses prompted their consideration of a brand, and 78 percent said such content made them more likely to repurchase.
How can you use this marketing trend to your advantage? You can gain an edge in personalization by sending shoppers personalized mobile offers. Using mobile devices in-store to research products or compare prices is common consumer behavior, but some retailers still fall short when it comes to communicating with customers on mobile.
Knowing what shoppers want and sending offers at the right time can make all the difference in making the sale. To convince prospects to share their personal data, explain how they’ll benefit—and how you’ll ensure the information’s security.
7. Loyalty
Are you focused on getting new customers at the expense of existing ones? Big mistake. Consumers are less loyal to brands than ever, so if you can earn their loyalty, you’ll have a competitive edge.
Two-thirds of consumers say they are more likely to shop with retailers that offer loyalty programs. Closely tied to personalization, loyalty programs can help you simplify the process of targeting and earning new customers because of all the data the programs allow you to collect. By using a loyalty account program to track your customers’ behavior and purchases, you can then create marketing campaigns tailored just for them and generate personalized offers.
Getting your loyalty program “just right” can be challenging. It should be easy to use, offer worthwhile rewards, and create ongoing engagement. But with more retailers committing dollars to loyalty programs, this is a marketing trend you should think about this year. For 10 winning examples of retail loyalty programs, check out this list.
8. Email
Calling email marketing a “marketing trend” might sound like old news, but according to an eMarketer study, the median email marketing ROI is 122%, which is four times higher than any other digital marketing channel.
83% of global consumers say they prefer email over any other method when receiving communications from businesses. Email may not be new, but it’s still a strong marketing channel that you shouldn’t ignore.
To get your emails noticed in 2024, focus on personalizing everything from subject lines to offers. Smart retailers will also use email marketing to build loyalty by encouraging shoppers to “check in” on their retail offerings regularly to see what’s new.
Disclaimer: Fundbox and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
