My 2024 predictions
It’s officially 2024 and as you’re polishing off the last of your Quality Street I wanted to bring you my predictions for the year ahead. Now I’m sure you’ve already read various accounts on what the year ahead might look like and yes here I am throwing my tuppence in too. Before you continue – the main thing to remember is that this is a calculated prediction but not necessarily 100%, as with all predictions. I’m sure I don’t need to point that out and I don’t do it to cover my back so you can come back to me at the end of 2024 and tell me I was wrong, but merely because what I wouldn’t want you to do is hang your hat on it and focus on ONLY this.
The past few years have been varied (seriously varied) but 2024 is predicted to see a slight improvement in finances by the end of the year. The cost of living crisis (as much as it’s still going strong) is old news, but lots of people are still adapting to their new economic state and adapting their spending to suit.
This doesn’t mean people aren’t spending, they most definitely are but they’re absolutely more than willing to switch up their brand alliances and they’re looking for value. Their loyalty isn’t quite what it was and they’re increasingly listening to one another more than ever – the voice of the brand isn’t as important as it used to be, the consumer needs evidence that what you say about your own product and brand is true.
So, what do I think will be the main things for 2024? Here goes:
1. Customer Retention
2. Listening to your customer and delighting them
Let’s look at retention first.
What do I mean by customer retention and why is it so important?
We all want customers who shop with us once and then come back again and again, it’s the dream for any business owner. And why? Well firstly because it makes things much easier for you and secondly it’s much cheaper. When all your efforts to nurture and acquire a customer mean you have them for ‘life’ it means your strategy can be split between acquiring new customers and re-selling to the existing ones (and FYI that should be your strategy anyway). The latter takes much less effort as they know you and trust you and they’re there waiting to buy. All it often needs is new product drops and the right incentives and they come back.
Cost wise you’re only paying to acquire them once through marketing activity such as ads. After this they’re in your community and apart from the much cheaper cost of your email marketing, promotional activity and rewards they’re pretty much locked in, unless you really annoy them (hello bad customer service).
Now I must say every single week how much easier it is to get more money out of your existing customer base than it is to get new people to convert and 2024 will see this be the case big time! So what can you do to make sure your retention strategy is a solid one? You can start by focusing on these things in your business:
Emails
Emails are the powerhouse of retention, it’s true! Building your email list will always pay off. Make sure you have segments set up so you can easily identify your repeat customers. Those who have purchased once are key and I’ve included lots of detail on this in Episode 1 of my podcast including how you should speak to this segment. Your main aim should be to make them purchase again, because once they’ve bought twice the next orders are much easier to get out of them. Making sure you personalise your content and talk to them about the ‘correct’ product that makes sense to follow on from their last purchase is really valuable and will bring many more of them back again.
Other important segments here are people who have bought most often and people who spend the most.
Product
It goes without saying – they can only come back if you have the product available for them to buy. And I don’t mean stock, I mean products that compliment what they've already bought, a variety of choice as well as frequent new product drops to give them a reason to buy.
Remember you can only sell new product to the same people and the same product to new people so when we’re talking about retention new product is key!
Rewarding
We all like to be rewarded right? This doesn’t have to be in the form of a formal reward provider – you can reward your customer by once again tailoring your messaging towards them. Think something like free shipping because you’re a VIP customer, £10 voucher because you’ve spent £x amount with us over the last X months. Incentives to buy again but tailored just for them are compelling and they work.
Creating FOMO with sell out launches
This works well for retention and also for converting new customers. It’s pretty simple – the more we observe sell outs the more we want in ourselves. Sell outs are a necessity for any business because not only does it promote urgency and have a compounding effect with every launch but it shows just how in demand your products actually are. And when we can’t have something we want it.
Now I’m not saying you have to lie to your customers but you can always ensure you sell out by limiting the supply and hyping each launch enough to make sure demand is always higher than your stock. Think wait lists, launch via email first and limited editions.
Now let’s look at how you can delight your customer.
Part of locking your customer into your brand means they need to feel important. They need to feel like giving you their business is appreciated and that you’re really looking after them. So yes I hear you say - ‘but this has always been important’ and yes it has but this year you’re going to have to fight harder for their pound and customer service is a game changer to securing their loyalty. It has the ability to really set you apart.
Consumers are also increasingly expecting a lot from businesses, their demands are high and they need listening to.
Think of the last time a brand really blew your socks off? And not with their product but with how the whole purchase process felt. Did you receive a little freebie inside your parcel which you didn’t expect? Was the packaging and unboxing experience a joy? Something a little bit different or clever? Did they keep you updated each step of the way?
I can bet your experience really left you feeling positive about the brand even if their site navigation annoyed you when trying to find what you wanted. The purchase process certainly does not end once you’ve sent the parcel. And here’s why...
When we buy something we want to be made to feel like we’ve made a really great decision. We want to feel like that when it arrives also. There are 2 peaks of excitement when we’re buying something known as the ‘two moments of truth’.
A phrase and concept coined by Procter & Gamble (P&G) which revolves around the critical interactions a consumer has with a product or brand, which can significantly impact their purchasing decisions.
The first moment of truth refers to the first encounter a consumer has with your product - usually within less than 10 seconds. It specifically refers to the choice a customer makes about your brand and product upon first encountering it. It's also the decision they make to purchase with you over any other competition.
This is why it’s so important for you to capture your customer’s attention and create a positive impression. Packaging, clear messaging, appealing visuals, and product positioning all play a crucial role in influencing the consumer's choice during this first moment of truth.
The second moment of truth focuses on the customer's post purchase experience and their perception of your product's performance. This moment can determine whether the customer becomes a loyal advocate for your brand or is disappointed and potentially put off from making another purchase.
Delighting customers during the second moment of truth can lead to valuable word of mouth, repeat business, and long term brand loyalty.
By ticking the box on both of those moments you can not only drive customer loyalty but foster a positive brand reputation which also feeds retention.
So what do you have in your strategy that tackles both of these points?
