E-commerce lessons for 2024 customer loyalty

As the year closes, retailers are looking back at where their biggest wins in 2023 will inform new ways for them to deliver more unforgettable experiences in 2024 to inspire lifelong loyalty, and continue fueling e-commerce growth.

When it comes to the livelihood of a brand, nothing is more pivotal than customer loyalty. While earning that trust is no easy task, 2023 continued to show that all of that hard-earned goodwill can easily be destroyed with just one disappointing experience. To overcome the fickle nature of consumer preference trends, brands saw two of the biggest industry changemakers with social media and AI tech.

Social media's shifting influence

While social media platforms have created new ways for brands to engage with loyal and prospective customers, social media has also made brands more susceptible to negative reviews which can severely impact business. Brands in 2023 who were not prepared for the real-time dynamics of consumer feedback on channels like TikTok and Instagram were especially pained. This was particularly painful when involving poor delivery or returns experiences, which demanded quick, proactively actions by online retailers with post-purchase solutions.

In the year ahead, social media and its expanding reach will only continue to increase in popularity, making it all the more important for online retailers to safeguard their brands and consumer loyalty. This shifting arena of content holds a huge opportunity in the year ahead. TikTok and YouTube videos such as try-on hauls, styling inspiration and GRWM (get ready with me) content, published by a brand's consumers and supported by the brand itself increase community engagement and loyalty. Brands in 2024 should also invest in strategies for community-driven platforms, such as Facebook Groups and newer platforms such as Discord. In fact, more than 20,000 users joined fashion marketplace StockX's Discord within a day, earning it the record for the brand server with the most users to join in a single-day period.

The value of strong social media programs will continue to pay dividends for brands. Recently, French sports and footwear brand Courir saw an average conversion rate of 2.89% on its notifications, which include customized icons leading to its Facebook, Instagram and TikTok pages. That's over 2X the average conversion rate for e-commerce emails!

Fast-rising popularity of AI

Major online retailers including Drew House embraced post-purchase as a new revenue stream that will increase customer satisfaction, and looked to post-purchase SaaS solutions to enhance personalization within post-purchase customer communication in 2023, as AI soared in its popularity as a brand tool. In the next year, we will continue to see growth with brands seeing huge ROI with AI with post-purchase in the following ways:

• Personalized updates on shipping and delivery: AI can provide real-time, personalized updates on shipping and delivery status, keeping the customer informed and engaged throughout the post-purchase phase
• Customized recommendations for future purchases: Based on the recent purchase, AI can suggest complementary products or accessories, enhancing the likelihood of additional sales.
• Personalized product care tips: AI can send tips and guidance on how to use or care for the purchased product, tailored to the specific item bought. This not only adds value but also demonstrates the brand's commitment to customer satisfaction.
• Feedback and review requests: AI can intelligently time and personalize requests for product reviews or feedback, for example by highlighting aspects of the product the customer is likely to have appreciated, thus increasing the chances of engagement.
• Dynamic follow-up communication: AI can schedule follow-up communications, like emails or push notifications, based on the customer's engagement patterns, ensuring that messages are sent at the most effective times.
• Loyalty program personalization: AI can tailor loyalty program communications, offering relevant rewards and incentives based on the customer's purchase history and preferences.
• Predictive support queries: AI can anticipate and address potential post-purchase questions or issues specific to the product, providing preemptive support and reducing the likelihood of customer dissatisfaction.

The 2024 playbook for retailers

As social media and AI continue to mold the next era of the US ecommerce market, retailers are ready to take the lessons of 2023 around personalization and engagement into the new year. Engaging consumers after they have made a purchase proves significantly easier for businesses than constantly pursuing new customers. Moreover, this post-purchase engagement can be accomplished at a fraction of the cost compared to marketing to fresh prospects.

So how can retailers provide the best experience possible for their American customers? They must prioritize effective communication by having their tech stack properly set up to provide information to each customer automatically as needed, in a way that suits their preferences. They must also provide proactive, valuable updates for shoppers while they are awaiting a delivery is an easy way for retailers to nurture their brand reputation.

What many consumers value most in their post-purchase experience is information. Indeed, with four fifths of American consumers finding these proactive order-tracking alerts important, proactive outreach is a vital piece of the puzzle, and should not be underestimated by e-commerce platforms. Lastly, they must demonstrate an appreciation for the consumer mentality that places convenience as king. The key to securing long-term business success in the e-commerce domain lies in forging lasting relationships.

A key part of this is to always ensure yours is the most convenient option available to shoppers. American consumers want their delivery experience to fit around their lifestyle, rather than the other way around. Given that the majority of American consumers prefer packages arriving on the promised date to a quick delivery, it's clear that they want deliveries to fit into their schedule.