There is no denying that 2020 was no ordinary year and the result of a pandemic meant consumers were spending more time at home, more time scrolling and are requiring new ways of connecting across a more diverse entertainment spread.
The Mumbrella commissioned study; the Digital Consumer Trends index 2021 has now been circulated and some really interesting insights are emerging that will make us reimagine our marketing mix moving forward.
We’ve done the legwork for you and summarised the key highlights.
Make yourself a cuppa, put on your trackies and settle in… as we drill down on some highlights from the Digital Consumer Trends Index 2021.
Highlight 1: THE RISE OF SOCIAL COMMERCE
The pandemic has seen a 67% worldwide increase in media consumption and a 40% increase in time spent on social feeds. With consumers spending more time than ever on social media, it is one of the key drivers of sales. The path to purchase plays an integral role here. The less clicks a consumer has to make to purchase, the higher return you will see. The Digital Consumer Trends Index 2021 has uncovered there has been a 35% increase in purchasing after being exposed to a social advert. In saying that, email still remains the top player of all. Being the strongest converter channel and when surveyed, the one that audiences seem to favour the most. Email is a great way to maintain brand messaging and is actually preferred by consumers. So the gold nuggets take away here is that social and email strategies should work hand in hand to drive loyalty, revenue and repeat purchases.
At The Wired Agency, we have already started to implement such strategies, by running 1st party data campaigns on social media that collect leads, that can then funnel into our clients email campaigns. We can also categorise audience lists based on how warm the lead is, which can drive personalised messaging and tailor a customer’s experience.
Highlight 2: CUSTOMERS ARE LOYAL BY NATURE
Customer retention and loyalty can quite often be overseen by marketers. Time and time again we hear our clients talking about their focus on acquisition and gaining new customers and hear about these big fancy strategies to deliver on this. Yet when it comes to the bottom-line, reducing attrition rates by a mere 5% can see profits increase by a staggering 95%. The data from the Digital Consumer Trends Index 2021 shows that almost two-thirds of consumers are prepared to pay more to purchase from a trusted brand. However, 81% of consumers are loyal to some brands but will buy from a competitor if it’s cheaper or more convenient. As such, a loyalty strategy should be devised that focuses on retention, value and being top of mind to the customer when they are making purchasing decisions. An interesting stat pulled from the report is 74% of consumers buy frequently from the same company, but are not particularly loyal to that brand. It’s crucial for brands to build value into customer relationships to turn volatile consumers into reliable customers.
Highlight 3: THE VALUE EXCHANGE ECONOMY
Consumer privacy in digital land is a huge focus at the moment. From the Cambridge Analytica scandal a few years back, to consumers being able to opt out of app tracking with the new iOS 14.5 update. The industry is shifting and marketers are having to think swiftly and circumnavigate some unchartered waters.
These days, if you want a customer’s details, they need to get something tangible out of it. Enter, the value exchange economy. Research conducted for the Digital Consumer Trends Index 2021 has uncovered 90% of consumers are prepared to trade data for a discount, but 89% will for loyalty rewards, 80% for early or exclusive access, 59% for unlocking content, and 52% to feel part of a brand’s community.
These stats alone provide huge insight into strategic ways you can capture your audience’s attention, data and loyalty. One way we drive this strategy at The Wired Agency is through a socially led competition that gives away an epic prize as a tangible thank you. We utilise our clients’ brand partnerships to drive leads through shared audiences and these audiences are then funnelled into broader marketing initiatives that drive retention. Tactics like VIP early access to deals, new product drops and just giving the customer a bit of TLC is key here.
Author, Shae Boyer, Business Director & Producer