We can see examples of this complexity on Amazon. 70% of Amazon searches don’t include a brand name. And 90% of product views in this marketplace result from searches and not from branded merchandise or ads.
Market dominance and consumer behavior are the two biggest challenges of big brands in terms of business development and customer acquisition. And then there’s also the growing consumer demand for brands with a higher purpose.
Consumer value has become a determining factor in purchasing decisions. About 40% of global consumers are willing to pay a premium for products and brands that align with their beliefs such as sustainability, recycling and donating a percentage of income to charities or certain ethnic groups.
There are still many buyers who prefer to buy branded
goods because of good product selection and product reliability. But Since the start of the pandemic, so many customer Latest Mailing Database journeys have started happening in the market. Independent brands do not have the data necessary to provide consumers with the personalized experience necessary for goal-based selling.
Strong brands recognize that they need to get customers from the marketplace to their own properties so they can create long-term customer relationships. Brands need to re-evaluate the branding potential of the market and create strategies to re-create the customer experience in their own properties.
There will be an increase in ad spending in 2021 which will inevitably lead to advertising volatility. But apart from that, consumer confidence in digital advertising has also experienced a drastic decline for the following reasons:
Some consumers think that digital advertising is annoying
Some consumers are becoming annoyed about how their online search history is being used to target ads
In fact, Google recently announced its plans to remove cookies from chrome browser by 2022. There are also reports that Apple will release an iOS update in the future which will result in a 50% reduction in Facebook audience network advertising system.
But exploring these alternatives can also hinder advertising uncertainty. And if messaging apps, video commerce, and School Email List voice shopping replace digital advertising, some brands are wondering if there’s a way for them to have a relationship with their customers so they can still be recognized as individual brands.
Even so, brands are strongly advised to focus on increasing their retention rate in 2021. With that, even if you can’t attract new customers through digital advertising, you won’t feel a decrease in sales because you have consistent income from loyal customers. Here are some pointers on improving and maintaining your retention rate.