First, from Logica, one of the biggest shopping changes is at the checkout. According to researchers while about 25% of shoppers in 2019 said their paid in cash, fewer than 20% said the same in 2020. Added to that, 27% of shoppers now say they have used peer-to-peer (P2P) payment options to buy products and 14% have used buy now/pay later options at checkout.
For merchants, one of the biggest changes is the subscription model. While big for digital-based products - games, books, magazines and more, a growing number of physical product brands are now turning to subscriptions. According to new Bold Commerce data about 70% of direct to consumer brands are now using subscriptions as part of their base retail model.
These merchants aren't just offering one-off boxes, either. According to Bold Commerce's report 20% are incorporating traditional incentives like discounts, and 57% of those using loyalty program options report customer lifetime surpassing the one year mark.
As to how brands are engaging consumers, it seems multi-channel may be the new king. According to new Braze data brands using a multi-channel campaign strategy are showing higher customer engagement than those who stick to only one or two channel options.
"Through the tumultuous environment of the last year, the leading factor that separated the brands that merely survived from those that thrived was the ability to nurture and strengthen their customer relationships through contextualized engagement," said Bill Magnuson, Cofounder and CEO of Braze. "We now have the data to back up what we always knew intuitively-that excellent customer engagement directly results in higher customer lifetime value and lower acquisition costs, driving efficient and durable business growth."
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