As the new year begins, brands across industries are brainstorming fresh strategies and adjusting tactics from the year before based on what worked and what didn’t.
But learning from the previous year is just the beginning; with ever-growing competition and evolving technology, it’s more crucial than ever for marketers to look ahead and anticipate what’s to come.
Movable Ink’s Strategy Team is your ticket to a 2023 preview. From global marketing trends to industry-specific predictions, the team gives critical insights for how you can stay ahead as the marketing landscape shapes up in the new year.
Martech Predictions
Marketers from every industry will hone in on doing more with less. With inflation that’s slated to continue into 2023, brands will need to prioritize efficient, customer-centric tools and strategies:
Marketers’ Increased Workload
As consumer sales slow at the start of the year, marketing teams will be working hard to drive continued performance despite reduced demand.
Lean Marketing Teams
As companies face unexpected macroeconomic conditions and prepare for 2023, teams are shrinking, stretching each marketer's bandwidth as a result.
Required Proof of Value
Tight budgets means every dollar spent is scrutinized, making proof of value a necessity in every marketing initiative. Even channels that historically provide a high ROI—such as email and in-app messages—will require marketers to step outside the box. It’s crucial to continually innovate, iterate, and make existing programs more personalized than ever.
Martech Pro Tip:
Marketers may be expected to achieve more with less in 2023, but the answer isn’t necessarily more hours and a longer list of manual tasks. Prioritize tools that leverage automation and contribute to customer-centric initiatives. Think beyond the next-best action by using tech that strengthens your long-term customer lifetime value and adapts throughout the entire customer journey.
Retail Industry Predictions
Every industry will be characterized by consumers’ tighter budgets, and the retail landscape is no different. As a result, retail marketers need to be laser-focused on retention strategies that are fostered by loyalty programs and truly omni-channel experiences:
Customers’ New Spending Patterns
After the holiday rush, customers are likely to enter the new year with lower discretionary spending as they prioritize savings, covering the increased cost of living, and paying off debt.
Baseline Income Determines 2023 Spending
Mid-income shoppers will continually seek discounts on essentials, and mid-market retailers will have to hunker down to drive spending. As a result, the mid-market is projected to see high action in 2023—bankruptcies, activist investors, mergers, and acquisitions.
On the other hand, high-income earners are likely to maintain their spending levels despite global trends. Luxury brands’ price hikes will have little effect on these targeted customers.
Front-and-Center Loyalty Programs
A main play to retain wallet share involves retailers bolstering their loyalty tactics, with personalization becoming more deeply embedded in new loyalty strategies and approaches.
Customers will see a shift from the traditional purchase-to-points approach as retailers go outside the box by offering loyalty members cashback, free shipping, and even exclusive pricing.
Offline Omni-Channel Experiences
Brick-and-mortar foot traffic will steadily increase, but the way customers shop will be a thoroughly omni-channel experience. Expect consumers to use their digital devices throughout their in-person trip, from comparing prices and reading reviews, to paying via Apple wallet.
Omni-channel investment will be a necessity as most purchases will involve multiple touchpoints, from stores and ecommerce to social commerce and branded apps. Brands that restructure their store experience to fit those needs will make the most of the brick-and-mortar surge.
Retail Pro Tip
Retention is the name of the game in retail, and current customers want boosted loyalty programs and omni-channel offerings.
Invest in new technology—such as wifi, beacon tech, or even CDPs— that transforms a store visit into an omni-channel experience. For loyalty, lean into boosting your program with strategic personalization software that takes loyalty far beyond points-for-purchase experiences.
Financial Services Industry Predictions
Financial services is diversifying more than ever as customers seek the budget and plan that works best for their unique needs, driving the value of personalized programs for the industry:
Credit Card Partnerships
As the travel boom continues, credit card brands will bolster their travel and hospitality partnerships, rewards, benefits, and booking platforms to maximize profit.
With retention top-of-mind, credit card brands will refine their offerings to compete with fintech brands’ hyper-personalized rewards.
Buy Now, Pay Later (BNPL) Expansion
BNPL has been growing for years, and 2023 will be no different with broad expansion to all spend verticals. As a result, reward programs will continue to be the main differentiator among brands.
BNPL companies will aim to be a viable alternative to credit cards and cash, so expect a rise in BNPL purchases and for retailers to accept multiple BNPL options at point of purchase.
With broader use, regulation in the BNPL industry will tighten up to support more conservative spenders experiencing their first foray into the product.
Savings and Mortgages Diversification
Savings account interest rates have become marketable after a steady increase. To drive retention, brands will cross-sell savings accounts by alerting customers of interest rate hikes and encouraging account deposits.
Mortgage interest will remain high, forcing brands to diversify their offerings to stay afloat. Brands that soldier through to the end of the year will see home purchases and mortgages rise again when the “new normal” of high interest rates settle.
Financial Services Pro Tip
The 2023 economy is shaping up to be a roller coaster, but your clients’ finserv experience shouldn’t add to that—turn your brand into a safe space for customers and keep them front and center with personalized loyalty programs that encourage transparency and education.
Put your customer first in 2023.
Get the master plan to customer-first strategies in The Value of Customer-Centricity During Economic Downturn eBook.
Read the eBookTravel and Hospitality Industry Predictions
Travel is back and booming, but it doesn’t look the same as it did pre-pandemic. Loyalty programs are shifting and so are travelers’ priorities, especially for Gen Z customers. These brand marketers must pivot to make the most of the travel surge:
Loyalty Program Overhaul
Brands’ loyalty structure will shift to serve both frequent fliers and annual vacationers more tangible value from the program. This will include more creative ways to earn points and improve clarity within the programs, encouraging easy engagement.
As always, loyalty programs will play a key role in the chase for retention, and brands will be highlighting statuses and gamifying the experience to stay a step ahead. For a peek into the future, here’s data from IHG hotels loyalty members:
50% room nights booked
20% higher spend
9X more likely to book direct
Sustainability Priority
Today’s travelers, especially Gen Z customers, want sustainable vacation options. More than ever, customers are willing to pay the difference to support the environment and local communities.
Blending Business and Leisure
Travel may be back, but the traditional 5-day work week isn’t making a comeback for most. The newfound flexibility will allow travelers to extend their stays. Both affordable short-term rentals and hotels that cater to a new wave of digital nomads will grow this accommodation sector as a result. Ancillaries will be a key driver for incremental revenue during the uncertain economy of 2023.
Online Travel Agency (OTA) Differentiation
As the OTA market becomes increasingly saturated, the brands that stay on top will be those that differentiate their product offerings. A key example of this is Airbnb’s location-agnostic browsing feature, highlighting non-urban destinations to stave away over-tourism.
Travel and Hospitality Pro Tip
Make the most of the travel surge by pivoting to what customers want during the comeback: better loyalty experiences and options that help them prioritize what they value most. Personalize the brand experience through loyalty programs, recommendations, and trip updates.
Media and Technology Industry Predictions
For Media and Technology marketers, cost optimization is the goal as customers gear up for economic turbulence. As a result, keep an eye out for consolidation in 2023—both from big-name brand mergers and from consumers reevaluating current subscriptions. Here are the trends to watch:
Streaming Overhauls
With the “battle of the bundles'' in full swing, every service will try to capture audiences through unique product offerings and exclusive offers. Services that consolidate and improve efficiencies in their tech stacks will come out ahead with better user experiences and greater loyalty.
Services will invest in new avenues of revenue by expanding their offerings to include live shopping, betting, and gaming.
AVOD and lower tier plans will launch to both retain cost-conscious customers and acquire new non-subscribers.
Telco Updates
Broadband services will continue to grow, making competition fiercer across markets. As a result, expect average costs to lower for the consumer.
The mobile partnership trend is slated to stay strong, especially for telco and streaming provider combos, and global investment in 5G will continue to grow.
Paid TV services will continue to decline while streaming providers gain market share. But with cost-cutting as the 2023 priority, expect Advertising-Based Video On Demand (AVOD) services to grow in popularity next year.
Video Game Consolidation
Video game companies are also consolidating in an effort to strengthen their positioning in the industry. In the coming years, expect to see gaming companies release exclusive features both to differentiate themselves from their competitors and diversify revenue opportunities.
In a combination of an ongoing semiconductor shortage, inflation, and an increase in hardware prices, console ownership will plateau while mobile and cloud gaming continue their uptick.
Betting Growth
With sports betting legalized in more than half of all US states, a rise in safer gambling strategies will follow as pressure mounts to advertise more responsible gambling.
With the BT Sport and EE partnership promising an enhanced in-play experience with mixed reality, expect these partners to join the sports betting space, with live broadcasters soon to follow.
Media and Technology Pro Tip
Take a note from global consolidation by streamlining your marketing program. Get ahead of the game and up your efficiencies with automation and tech stacks that give you the most bang for your buck.
Conclusion
Every marketer wishes they had a crystal ball at times, but foresight from Movable Ink’s strategy team is the next best thing. Use their predictions to gear up for an exciting 2023 and line up your best tools and strategies.