In the world of business and marketing, staying on top of trends and understanding statistics can make all the difference. It's essential for marketers and business owners to be aware of the top digital experience trends. By understanding these trends, you can make informed strategic decisions about allocating your resources, creating engaging content, and optimizing your digital experience efforts. As we navigate the economic uncertainty and shifting landscape of digital marketing, it's more important than ever to be adaptable and innovative.
That's why in this article, we'll explore the top 5 digital experience trends for 2023, providing statistics and data to back up why these trends are crucial for success in the year ahead. All of the data and statistics mentioned in this article are extracted from Acquia's CX report.
1. Beat Economic Downturn With the Help of Digital Experience
Economic uncertainty is the only certainty. The economic downturn is looming, and businesses must brace for the impact. The global economic situation is uncertain, with many Western economies preparing for a rough ride. Inflation rates are high, and some countries have seen declines in their GDP. In this context, digital experience (DX) could be a game-changer for organizations looking to stay ahead of the competition and navigate tough times.
According to Acquia’s CX trend report, 94% of marketers said that their organization has changed its digital customer experience strategy, particularly in response to macroeconomic factors. This overwhelming majority underscores the critical role of DX in driving business growth and success.
The survey also reveals that businesses are already taking two main steps to prepare for the downturn:
- 58% said they're improving their customer service to boost customer retention.
- 56% said they're adopting MarTech (Marketing+Technology).
The rationale behind these steps is simple:
Retaining an existing customer is much easier and cheaper than acquiring a new one.
In addition, customers' expectations of service quality have never been higher, which makes it imperative for businesses to provide top-notch support and experiences that set them apart from the competition.
An interesting statistic that's worth noting is that about 40% of UK shoppers have switched brands in the past year. This highlights the need for businesses to prioritize customer service to retain their customers, particularly in times of economic downturn.
According to Forbes, businesses that adopt a CDP (Customer Data Platform) and analytics are likely to be recession-proof. With the right DX strategy in place, businesses can not only weather the storm but also emerge stronger and more competitive in the long run.
2. The Rise of First-Party Data
The rise of first-party data is a major trend in digital marketing for 2023. According to the Acquia CX report, 88% of marketers say that gathering first-party data is more important to their organization than it was two years ago. This number has significantly increased over the past few years and indicates the importance of gathering first-party data for digital experience.
First-party data refers to personally identifiable information about your customer base, which can only be collected with their consent. This means there is a need for compliance with regulations and privacy laws like GDPR in different parts of the world. It is essential to establish trust with customers for them to be comfortable sharing their data with you.
Historically, third-party cookies have been used to target anonymous users, but data shows that people do not like this approach. However, the survey shows 74% of consumers are willing to share personal data in exchange for an improved experience. This number increased significantly from 50% last year, highlighting the growing importance of gathering first-party data to deliver a better digital experience.
Building a first-party data strategy is crucial for businesses that want to create a more compelling customer experience. This can be achieved through an app login, portal login, or even a returning customer login to track orders on retail sites.
Additionally, using a Customer Data Platform (CDP) can help in building a 360° view of your customer and data democratization, giving access to customer data to everyone that touches the digital experience inside your organization. This will enable every team to treat your customers the same way, regardless of the touchpoints. By doing so, they can leverage the power of personalization to drive outcomes that boost their company's success.
3. Shrinking Market Budgets, Increased Digital Spent
The digital shift in marketing is inevitable as more companies continue to allocate more budget to digital marketing channels. However, the reality is that many businesses are facing budget cuts, with 20% of marketers have already pivoted due to the potential recession (HubSpot). Furthermore, with the current high inflation, the value of budgets is also decreasing. Shifting budgets to digital marketing can also mean that programs that were previously affordable are now more expensive, particularly as the cost of Google advertising and Facebook advertising has risen above the inflationary rate.
Budget crunch tips
The following budget crunch tips will help you optimize your marketing efforts and achieve more with the same amount of resources, even in the face of inflation and budget cuts:
1. Prioritization
Effort vs Impact: Evaluate different programs, channels, and tactics based on their impact and effort. Considering all the hidden costs and efforts, imagine the dollar amount rising or falling.
Rank and weight: Rank and weight your existing marketing programs available in the market, identifying those that perform best and doubling down on them.
Business goals: Ensure that budget prioritization aligns with your business goals, whether profitability or growth. If your business cares about profitability, make sure not to kill your margin just to get in that new sale, and if your business purely cares about growth, make sure your top KPI is increasing ROI.
2. Tools to use
Martech Audit: Undertake a MarTech audit to evaluate your marketing technology stack, identify tools that are not being fully utilized or are no longer required. Acquia DXP enables you to purchase the tools that make a difference to your digital experience, allowing you to save money by removing unnecessary bundled products or tools with overlapping capabilities.
New revenue streams: Consider new revenue streams generated through marketing programs, with many great suggestions made by industry experts.
Partner with your CFO/Finance team:
By working with your CFO and finance team, you will be able to ensure alignment with your business goals and operating model and maximize your budget's potential.
Partner with your CFO/Finance team: By working with your CFO and finance team, you will be able to ensure alignment with your business goals and operating model and maximize your budget's potential.
4. Stand Out with Content Innovation
With existing audiences looking for something different, you need to differentiate yourself from your competition through great content that aligns with your focus areas and business goals.
Content can take on many forms, from menus in a retail store to videos on a website or blog posts. However, 74% of marketers say they struggle to create content that can be rapidly released across all of their digital Platforms. With the growing number of platforms and channels available to marketers, keeping up with the amount of content they need to produce and publish is much more challenging.
To tackle this issue, some marketers are using digital asset management (DAM) tools, with 67% managing brand imagery assets through DAM. The use of DAM can help you organize your content and differentiate your touchpoints with customers throughout their journey.
5. Survive and Thrive with a Composable Technology Stack
Last but not least trend is having a composable technology stack that is easy to integrate with other products and achieve a frictionless customer experience. This means buying only what you need to build your tech-stack, which is cost-effective and allows you to adapt to market demands.
The survey shows that 51% of marketers have adopted a digital experience platform, which is a collection of multiple tools that helps coordinate, operate, and provide content to your digital experience.
Throughout the past few years, digital experiences have evolved, and new technology has enabled many things that we couldn't have imagined. For example, virtual home viewings resulted in hundreds of thousands of homes being bought and sold without people stepping inside a property during the pandemic.
Composable technology enables your business to stay relevant and adapt quickly to changing market demands.
Conquer the Digital World
So there you have it, the top 5 digital experience trends for 2023. And let's face it, who doesn't want to be ahead of the game? Surviving and thriving in a world of economic uncertainty requires innovative solutions, and the digital experience is no exception. First-party data, content innovation, and a composable technology stack are just a few of the key areas that can help you beat the competition and stay on top. And with marketing budgets feeling the squeeze, making every penny count is more important than ever.
So go forth, dear reader, armed with these trends and conquer the digital world with your creativity and boundless potential. The future is bright, and it can be yours if you approach it the right way. Our digital strategy experts can work closely with you to make this happen.
