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5 customer loyalty and engagement trends to watch in 2023

by | Jan 19, 2023 | Marketing, Public Relations

As marketers and communicators are aware, the post-pandemic era has been tough for building brand loyalty. From CX to CSR, consumer expectations continue to rise. Add inflation and recession worries to the mix, and it’s safe to say that 2022 kept marketers scrambling to keep up with the fickle habits of consumers. So what’s in store for 2023?

Minneapolis-based agency The Lacek Group, which has been leading in loyalty, customer engagement and data-driven communications for over 25 years, identified the top five macro trends that are sure to impact loyalty and CRM in the new year, and the inherent challenges and opportunities for brands and marketers.

1. Consumers will be laser-focused on value

From inflation to recession, many indicators suggest that we may be looking at a tough couple of years ahead. Loyalty programs have a proven track record of helping brands succeed despite economic challenges. Brands with loyalty programs will need to lean into them and look for creative ways to keep customers engaged. As discretionary income shrinks, many customers may purchase less frequently. Create and reward engagement in-between transactions to keep the brand front of mind. Leverage both rational and emotional benefits. Consider ways to deliver recognition, surprise & delight, conveniences and connections.

5 customer loyalty and engagement trends to watch in 2023

2. Brands will delight consumers with phygital experiences

The phygital experience, in which elements of technology and reality coexist, offers opportunities to fold your customers closer to your brand. Six in 10 (61 percent) online shoppers consider their smartphone “very important” to in-store shopping. Brands should integrate app capabilities in the store experience. If brands are already in the metaverse, they should consider integrating Web3 and loyalty strategies by making elevating experiences for identified customers based on the data you’ve collected, or rewarding customers with exclusive access to Web3 assets.

5 customer loyalty and engagement trends to watch in 2023

3. Consumers will keep demanding social responsibility

It’s no longer a question of whether brands should engage, it’s a question of how. Brand purpose should be aligned with social purpose and should be clearly communicated to consumers. Brands are expected to embrace social consciousness and take a stand, not necessarily on every issue, but where there are opportunities to address specific pain points for their business. This is particularly important for the Gen Z audience, who are influencing their Gen X parents and Boomer grandparents. Consumers in general are focused on diversity, equity and inclusion; climate change and sustainability; controversial political issues; and fair employee policies. Brands can integrate philanthropic activities into their loyalty programs, and partner with companies that share similar values to increase customer engagement and make a greater impact.

5 customer loyalty and engagement trends to watch in 2023

4. Employee engagement will yield results

After 47.8 million resignations in 2021, organizations faced an ultra-competitive labor market and a talent retention crisis. This is likely to continue into 2023, despite economic uncertainty. Now is the time for employers to approach employee loyalty with a new lens. Organizations should engage, nurture and reward employees like they do their best customers. Retaining high-performing, valued employees can result in measurable savings in recruitment and training costs. Motivate employees through the four drivers of loyalty: financial, emotional recognition and surprise & delight, social (community and charity) and structural (reasons to stay).

5 customer loyalty and engagement trends to watch in 2023

5. Data privacy will get real

With new regulations going into effect in 2023, data privacy will take on a new urgency. By 2023, modern privacy regulations will cover the personal data of 65 percent of the global population—up from just 10 percent in 2020. Brands that are prepared for the new privacy environment will have an opening to build emotional connections with consumers by following through on their privacy pledges. Brands should establish and track metrics for brand trust—analyzing customer reviews, feedback, net promoter score, referrals and social listening. Trusted brands have loyal customers.

5 customer loyalty and engagement trends to watch in 2023

Get more insights on these trends in the firm’s In With the New: 2023 Trends report. Download the full report here.

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Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 12 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richardc@bulldogreporter.com; @BulldogReporter

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